Five years ago it was worth $0. Then, a month and a half ago it went to $150 a piece. On Monday it shot to over $600. On Tuesday, the value rose to over $900, meaning a 6, 445%-increase in value since the start of the year. It plummeted to $531 at midday today and then recovered reaching $793 while being traded on the Asian markets. Bitcoin: it’s the bonanza of the century.
Volatility and hikes are based on nothing except speculation and the desire to make a mint, thinking that you can predict what the markets are going to do. But, will that Bitcoin volatility lead to a bubble? Or is it bringing in a new era of a new type of currency that people are willing to use and that merchants are now being forced to accept? It might never become a legitimate currency in the future, but that’s hardly important when you can make a profit from it. Of course central banks are at risk from the use of virtual currencies as it would mean that they would have little control over what we spend and how transactions are carried out. Is Bitcoin the death of our central banks?
Some might say that Bitcoin is associated with crime and is an easy way for illicit transactions to take place. Tell me one currency in the world that isn’t laundered these days? Tell me one place in the world where there is a currency that is clean? Pure snow-white virgin money doesn’t and never has existed. Just because it’s associated with crime doesn’t mean it’s not good for the rest of the world. All of the currencies of the world are associated with crime somehow. Perhaps after all the fall of the Dollar, the death of the greenback will not be because the Chinese have taken the world over and imposed the Renminbi as the reserve currency on the world. Perhaps it will be the Bitcoin that takes over the world economically today.
- When Bitcoin started out in 2009 after being founded by Satoshi Nakamoto (or under his real name of Gavin Andresen) one Bitcoin was worth $0.30.