Bitcoin has gained great popularity and has been dominating news platforms recently. In January 2017, a single Bitcoin was worth $960.79. However, earlier this month, it was selling at a price of $11,500, more than ten times its worth from last year at the same time.
Bitcoin has also recently joined the ranks of the Chicago Board Options Exchange, when it received the approval necessary for official trading of the cryptocurrency. Even the Nasdaq will name Bitcoin in the commodities trading platform, beginning in 2018.
Goldman Sachs and Cantor Fitzgerald are just a couple of the financial firms considering the possibilities of trading based around the ever-popular Bitcoin. This is likely because Bitcoin now has a larger market value than the reigning giant, BP.
Bitcoin cannot, however, be called unique at this point. In fact, more than 1300 cryptocurrencies are listed with CoinMarketCap.com with a total capitalization in excess of $341 billion. That is almost the same size as Johnson & Johnson. Bitcoin though, is still the biggest, primarily because they were the first-ever cryptocurrency to be put into play.
You might be wondering why the price has simply gone crazy, and the answer is simple. It is due to the supply and demand factor. As people continue to buy up Bitcoin, they are in essence, driving the price up as well. With more than sixteen million Bitcoin currently in circulation, their value is more than $189 billion, and only expected to rise.
Bitcoin does not pay interest and there is no value linked to assets when considering it, unless the market expressly offers it. It is not supported by any central bank. However, it is still incredibly valuable simple because a community exists that believes in that value. Instead of trusting a government with its various institutions and regulations, trust is instead placed in a code base and incentives that are offered for running the network, which is decentralized.
The explosion of Bitcoin may make you want to invest in the digital currency, however many urge potential buyers to do so with caution. The asset is still speculative as well as experimental and there is a great deal of uncertainty still revolving around its suspected increase.
Bitcoin is most often used to purchase merchandise in an anonymous fashion, with no fees and no banks involved, which also means no middleman. Very few businesses accept it, but a list of those businesses can be found on websites such as CoinDesk.