Ok, a lot has happened since the last time we talked about bitcoin. If you spend 1exahash/sec online (*obvious Bitcoin joke*), you will hear about it. Most likely, you will be bombarded by charts, statistics, posts, and videos about the subject.
It can be overwhelming and confusing to understand what is a bitcoin exactly. It seems that in this day and age everyone is either hopping on the hype-train or hate it with passion. Here at CrowdH, we prefer to observe, analyze and look at the facts, from beginning to the end:
The Past of Bitcoin
It all started, when the need for a currency that no government controls, emerged. Through cryptography, blockchains and peer-to-peer networking, Bitcoin was created. It was widely used in the deep web. The idea was that you would be able to make fast transactions, without paying fees or giving data to a third party.
Unfortunately, this freedom allowed individuals to make illegal purchases with the cryptocurrency since no one could track them. The infamous ‘Silk Road,’ was a hot spot for the currency, with FBI collecting over 20000 BTC after shutting down the page.
As time went by, more and more people started ‘mining’ Bitcoin and more and more companies, and organizations began accepting them. This resulted in mainstream attention. The currency was recognized as a viable method of payment, not reduced to illegal activities, but for legitimate business. Steam, WordPress and Internet Archive are some examples.
While there were many backing this currency, there were also many non-believers, who warned about hacking, regulation problems, and algorithm malfunctions. All legitimate concerns by the way. A massive drop from 266 to 100 USD in between April and June of 2013, reinforced the beliefs of a ‘bubble.’
- Price: Went from 13 USD in December 2012 to around 600 USD in September 2016
- Transaction Fees: 0 USD
- State of Bitcoin: Still a free cryptocurrency with no limitations, mostly used by individuals online.
The Present of Bitcoin
At the end of 2016, Bitcoin was growing. By January 2017, the price kept breaking records. First rising to 1000 USD, then 1500, then 2000 and reaching as high as 2800 USD. Now everyone is buying them like mad men. It’s a gold rush.
Right now, the currency is stable. It dropped back 2300 USD, but many believe it will break even 5000 by the end of the year! On the other side, for many, its growth looks like inflation, because of the double top pattern in its growth (without getting technical, basically the price is raised to a certain number, then drops and is back up again to the same number).
- Price: As I am writing this, 1 BTC = 2355 USD.
- Transaction fees: 0 USD
- State of Bitcoin: A gold rush.
The Future of Bitcoin
Ask ten different people about the future of the currency, and you will get ten different answers. The truth is:
No one. There are many scenarios. China and Japan force transaction fees and nearly destroy the whole concept of it. A big company like Amazon or Tesco starts accepting Bitcoin and thus driving the price to the ground, making it worthless. A big bank enters the game and capitalizes it.
Or simply Bitcoin keeps climbing the charts and becomes a powerful global currency. This could mean the end of traditional money. We can’t predict exactly what will happen, but it’s fascinating to see.
Of course, we have to take into consideration the other cryptocurrencies that exist or will exist, making things even more complicated. There’s already Ethereum, a platform that lets you create your own cryptocurrency ( and has created ‘ether’ already).
- Price: ???
- Transaction fees: ???
- State of Bitcoin: ???
How does Bitcoin affect the average person?
To give you some perspective, if you bought 100 USD worth of Bitcoin in 2010, you would be a multimillionaire today. If you bought it 5 months ago, you would have tripled your money.
Now, don’t go and spend all your money. This is just an example to give you an idea about the power of the currency. The ones who are making money with this, are the ones that own the online wallets where Bitcoin are stored.
But it’s not about that. Cryptocurrencies are another reminder that the power belongs to the people. If Bitcoin crashes and disappears tomorrow, our idea of money will have changed forever. Having a stable Bitcoin means we are not dependent on the government.
Is there a war, a revolution, an economic crisis or a natural disaster? While these affect traditional money, p2p cryptocurrencies remain unaffected, because they are a product of the people.