SINCE its inception in 2008, Bitcoin has been one of the most groundbreaking inventions that humanity has ever had. It represents a new payment method designed to favor the people rather than the banks.
Everyone knows that central banks around the world apply certain fees on numerous transactions as a way to make a profit. Bitcoin managed to cut the middlemen, thus allowing people to save money during transactions.
This cryptocurrency has several advantages over any other currency and payment method. It is fully optimized for online use, which is a big plus, because most of the transactions these days are done electronically. It also gives people certain anonymity, its liquidity is far greater and the general fees applied for international payments are significantly lower.
Its value is great and many people use Bitcoin as a way to make profits. So, will Bitcoin peak once more in 2020?
Bitcoin was created in 2008 by an unknown person who goes by the pseudonym Satoshi Nakamoto. The first transactions were made in 2009, and after spending a few years on the black market, people started to realize the benefits that come from using Bitcoin.
Numerous sources started tracking every update on its development and allowed people to invest and make money off of Bitcoin. One of the most reputable and most credible sites is the Bitcoin Era website app, a site that has made many people rich and is still in operation.
In 2013 and 2014, Bitcoin finally gained global exposure and its value started going up. Its whole ‘evolution’ peaked in 2017, especially in December. Toward the end of the year, millions of people started trading with Bitcoin and suddenly its value peaked at over $19,000 in a matter of days. Some traders made millions of dollars thanks to the spike, but it didn’t last long. After reaching its peak, Bitcoin’s price plunged in a matter of days and spent a year in the process of normalizing.
2019 was the year when Bitcoin finally started going back to normal. Many countries around the world even made trading with this cryptocurrency legal and contributed to the process of normalization. At the moment, the price for one Bitcoin is around $9,000, but many experts started raising the question of whether Bitcoin will spike once again.
Reasons the Price Will Go Up
There’s no doubt that many benefits come from using Bitcoin. That is why people are always open to the idea of using it. Some use it to make various transactions, while some are mining them and making a profit off of it.
There are several indicators. First, Bitcoin is the most stable and most used cryptocurrency on the market. The more stable the currency is, the higher its value will be. Second, after spending a year in decline, Bitcoin’s price has finally normalized.
One of the biggest indicators that Bitcoin will rise again is its volatility and hash rate. The volatility measures a time series of past market prices. In the past couple of months, Bitcoin’s volatility has been extremely low. The only time when the volatility has been as low as it currently is was back in 2017 when its price started spiking.
The hash rate, on the other hand, represents the speed of completing an operation in the Bitcoin code. The higher it is, the easier it is for miners to get a hold of Bitcoins. After the hash rate plunged in early 2018, it is finally back on track and it has been on the rise.
Institutional interest is also a factor. Many governments around the world have opened their doors to Bitcoin and made it legal. Some of the countries even went a step further and started participating in the trade.
All of these factors combined would have one believe that Bitcoin is more than likely to spike again in 2020 and reach a value of over $20,000. Time will tell, but judging from the indicators, this scenario is more than likely to occur. (Sponsored Content)