Bitcoin’s value continues to break record after record. This week the digital currency even reached a value of $66,000 – a significant increase when you consider that Bitcoin was only worth a few cents in 2009. Other cryptocurrencies are also benefiting from the success.
The history of the Bitcoin price
The Bitcoin price has been on the rise for some time now. In 2017, the coin reached an all-time high of nearly $20,000. After that, many investors lost their faith in Bitcoin, and it quickly decreased in value, but since 2020 the coin has been on the rise again. Finally, in April, he broke through the USD 20,000 ceiling, and on Wednesday afternoon, October 20, the cryptocurrency was suddenly worth more than five times as much as a year ago.
The established cryptocurrency
Thanks to the popularity of Bitcoin, other cryptocurrencies are also becoming more and more established among a wider audience. As a result, there are now many serious investors who keep an eye on the bitcoin rate and that of the other currencies, for example, the ethereum, litecoin or Vechain rate.
Extremely large offer
In addition to those alternative coins, or alt coins, but they are not all equally reliable. The layman who likes to play a dangerous game is a good target for such coins: they cannot estimate whether the technology behind the coin is in order. Moreover, the cryptocurrency market is not regulated. Therefore, a little knowledge of the business and the market, or a reliable intermediary, is essential if you want to make money with crypto coins.
But there are enough intermediaries, and the number is only increasing. So of the known coins that have been around for a little longer, it should also be clear that the technology is in order; otherwise, they wouldn’t have been there for a long time.
Flash crashes
However, that does not mean that the value is guaranteed to be stable. There have been quite a few ups and downs. After 2017, Bitcoin crashed considerably, but investors got the shock of their lives even after Wednesday’s record.
On Thursday, there was a ‘flash crash’ on several exchanges (trading platforms). As a result, the value of the coin dropped extremely within minutes, only to recover within a few seconds. How extreme the crash has differed per exchange, but on the well-known platform Binance, Bitcoin even briefly reached the low of 8200 dollars.
Traditional investors across the bridge
That unpredictability and the fact that the market is unregulated has long shied away from traditional investors. But now, there seem to be quite a few sheep over the bridge. And that makes the chance of a long-term crash a lot less great, many experts believe. Now that traditional institutions also see salvation in the cryptocurrency, others are quickly following. And broad confidence in the currency does not make a big, long-lasting blow plausible, is the reasoning.