Bitcoin Price Value Since Inception
People really want to know, can you earn money trading bitcoin, so it is best to understand how much it was worth when it first started, and how much it has grown since then.
Transactions with bitcoin are not like the normal currency transactions, as with bitcoin, there is actually no real exchange between the buyer and the seller that takes place. Instead, the buyer does what is known as blockchain, which is the request of an update and given public transaction log. The blockchain shows what people currently own including what they owned in the past in terms of bitcoin and it is managed by a decentralized network system that ascertains and time-stamps payments by using a proof-of-work system. The people who manage this system are commonly known as “miner’’ and they are paid with newly mined bitcoin and transaction fees.
Bitcoin price value since inception has experienced rapid appreciation in relation to some of the world’s highly recognized currencies such as the American dollar, the British pound, and the euro. Precisely, in 2011 the value of bitcoin was equal to around $32 and $0.30. However, this value later fell to as low as $2.
However because of fraud, bitcoin has been subjected to forensic scrutiny by many nations that accept their use within their borders. This process has led to divergent opinions regarding the usage of bitcoin by different states. For instance, The Federal Government of America is the only government that has taken positives in using bitcoin and allowed free usage of the currency by its citizens. However, other governments such as the Chinese government has barred its private banks from using bitcoin in all transactions and the European banking authority has cautioned that bitcoin is not worth transacting with as it lacks consumer protection.
In 2012, bitcoin gained overwhelming attention from the media. Many articles and news items were then written about making money trading bitcoin. This rising popularity, would later in the year 2013 lead to the acceptance of this currency by some of the mainstream services like Foodler, Humble Bundle, Baidu and OkCupid. In the same year, bitcoin experienced the first legal intervention by law enforcement. The assets of Mt. Gox were seized. In addition, this lawful intervention also saw the shutdown of the Silk Road drugs marketplace, in the same year.
One year later in 2013, bitcoin received a major draw back when the Chinese government stopped its banks from using trading bitcoin in all their transactions within the borders of the country. However, the citizens had the free will of making money trading bitcoin in transactions in the country. This action led to a fall in the value of bitcoin in China as the new rules could not warrant the exchange of bitcoin for the country’s local currency.
Bitcoin can be used for payment of goods and services in the countries that accept it. The advantage of using it is that the transaction fees are relatively smaller than the high percentages around 2% and 3% that are imposed on processing a credit card. Some of the merchants accepting the use of bitcoin include; WordPress, Virgin Galactic and Reddit.
However, there is rising concern regarding the increasing popularity of learning how to make money trading bitcoin across the World. Many people and governments fear that bitcoin can be used to displace the legally accepted state currencies. The people who hold such sentiments argue that bitcoin can be used in capital controls, international sanctions and to circumvent inflation. A good example is trading bitcoin in Argentina as an alternative to the country’s currency, which plagued with strict capital controls and inflation. In addition, there have been so many cases where people in Iran have used bitcoin to escape currency sanctions.