We all must be aware of the rise of cryptocurrency on the new horizon. The concept goes back to 2008-09 just after the worldwide recession. The idea was to develop a currency due to which the crises won’t rise. Like all the new ideas or systems, Bitcoin also faced a lack of knowledge and experience among its traders. Maximum people having no knowledge and trying at the new idea do fail. The same happened with bitcoin. A lot of concerns were and are raised over the authenticity of the cryptocurrency.
Some people tried and failed to succeed. Other people got success, but overall as a concept, even after 11 years of existence, it has till not get the general nod. May have happened due to complications involved in the system. Most fail to comprehend the concept and feel it is not for him/her. Not only have that, but the recognized business tycoons in the world also have seen no future in the cryptocurrency. They feel that there is no bright future as long as cryptocurrency is concerned.
Path of Bitcoin
Bitcoin has had its path of growth or decline over the 11 years. The first transaction with bitcoin was between founder Nakamoto and an early adaptor of bitcoin in January 2009. However, the real-world known transaction was only in 2010 for a pizza between bitcoin miner and Papa John’s in Florida for 10,000 bitcoins.
For anything to get wide acceptance, it must be user-friendly. Then only there is a possibility that it would get a worldwide nod for the acceptance. Bitcoin lacks exactly at this point. First, the concept of digital currency is difficult adoption, and second the process to get a bitcoin is very complicated. Mining hardware, software, Blockchain, hash, all these are not very much user friendly.
Those who can afford bitcoin may not be having the knowledge to gain, keep, and trade it, and those who are talented may not afford to buy a bitcoin, giving the need for promotion for the bitcoin or any other cryptocurrency. As a result, the rise to many intermediaries trained to promote the bitcoin for some money. Seekers were less even if the transactions were safe and not easily trackable.
The concept gained wider exposure only in 2012 and 2013, though both had good and bad exposure. People found it a good way to deal with their black money. They used the crypto platform to convert their black money. The federal authorities had to shut down the website Silk Road which was used for trading bitcoins with black money. That was October 2013.
In 2014, Mt Gox, which used to trade game cards, started the bitcoin exchange, too, went under the scanner. It had come up as a marketplace for bitcoins trading in 2013. It is said that, in 2013 May, the exchange was trading around 150,000 bitcoins per day. In 2014, however, the exchange had to be closed down due to fraud accusations under the roof of bitcoins trading. It lost around 850,000 bitcoins in total. Only some of these bitcoins were gained back.
What needs to be done?
Based on this trending of bitcoin, one can easily understand that it might have gained more negative popularity than its gains or advantages. It is nothing new that whatever gets negative projection, the common population stays away from it. On the contrary, it attracts people with a criminal mind. One can easily understand this intelligent system’s failure just because of a lack of easier ways of handling it.
There was continuous research on how further to attract the most powerful customer towards this concept. It is evident that those who wanted the bitcoin reached more and more people, giving rise to Coinbase exchange, a non-centralized independent exchange through which bitcoins are traded. Apart from Coinbase, many other exchanges were started to make bitcoin trading reachable and easier. As a common rule, bitcoins’ prices vary from exchange to exchange, leading to arbitrage opportunities within exchanges. Since there is no centralized exchange, the uniform price of bitcoin is next to impossible things.
How is the trend going?
Bitcoin trading saw an upward graph in 2013 when trading was around $13.50 per bitcoin. Till April 2013, it reached to $220 and again slumped to $70 in the mid-April. In October of the same year, it was around $100 and reached $195 by November 2013. By November 2013 end it rallied as high as $1075. The time when China had entered the Bitcoin market. However, in 2014, Mt Gox came under the scanner due to its poor security and concerns over transactions’ safety. When Mt Gox closed down, the bitcoin market got very volatile. Post this, and the prices again crashed down to $760.
By January 2014, trading somewhat was stabilized at around $920. Post closure of Gox, it came around $315 from $600. The summer of 2015 witnessed the most stability in the bitcoin market with many precautionary measures and a good vibe around the trading in bitcoin. There has been a gradual but consistent rise in bitcoin from 2017 onwards. More and more people were reached and made to understand the benefits of trading in bitcoin. Since many share trades found the similarities in the risk, they started promoting bitcoin trading by their experience, which helped the bitcoin trade market.
One can’t say that today bitcoin trading is going great, but one thing is sure that the reach of bitcoin trading is extending its arms slowly. Once the people go through the entire process, it’s being thought that there will be more numbers involved in bitcoin trading.
If one sees bitcoin’s price today, he will understand that the trading is showing a good growth path. In October 2017, the bitcoin had the $5000 tag, which got doubled in November end to $10,000 and in December 2017, almost $20,000. April 2018 saw the price of $7000 again, and in November 2018, it was $3500. In June 2019, it burst out and rose to $10,000, and the same trend as the previous year was seen of growth and fall in 2019. However, the initial price tag was much higher than the price during the start of real emergence back in 2013, around $100 to $200. More or less, it has been floating between $5000 during fall and $20,000 during the rise if one studies carefully.
Even if no one claims to be knowing complete details about what cryptocurrency or bitcoin is, people at least are aware of what bitcoin is and what the value of cryptocurrency is. This pandemic may or may not underline the importance of digital currency, but the digital transaction has been understood very well by the common man. In the future, this will talk more about the digital currency, too, as it might become more user-friendly, and measures would be taken for the safety of possessed bitcoins.
Since safety is a haunting matter as far as bitcoin is concerned, one can guess the measures will be in place to reach the common man. The layman only concerned about his money, family, and safety, including the safety of assets. Once he is convinced of his assets’ safety, he is sure that he can look after his family well since there would be good money in bitcoin trading. Working skills will be crucial, but for the betterment of an individual, it could be learned. Bitcoin trading may be the life-changer of the common man.