In the modern world of smartphones and PCs, the trend of online shopping, online investments, and online trading is increasing. Mostly we hear about Bitcoins in newspapers. But do we know about Bitcoins? Bitcoin is a decentralized digital currency network, which means the government or any central body does not own it.Bitcoins can be traded for goods and services, with vendors ready to accept Bitcoins as payment. Bitcoin Price is a price per Bitcoin which is not fixed and changes as per different currencies. It is calculated by using mathematics. Anyone can easily predict it.
Many people have tried to predict it but have failed – which means it cannot be easily predicted. The price was highest in the year 2017, which is 20,000 dollars. It changes each day, and you can find it on Google or any other search engine. This currency does not exist physically, but it can be mined independently.
Bitcoin
Price History:
Bitcoin's
price was small initially in the market - a few cents and was not popular like
stocks in the market. In October 2013, Bitcoin was priced at 123.50 dollars,
and it started climbing rapidly and reached 1000 dollars by December of the
same year. Eventually, it went higher and higher and rose to 20,000 dollars in
2017, which is the highest price of it, and then it started fluctuating.
How
is Bitcoin price calculated?
The
price of Bitcoin or other cryptocurrencies is based on two main factors that
are Demand and Supplyi.e., the Buyers and sellers. Buyers who have currency and
sellers who want currency in exchange for goods and services. For example, one wants
to buyguava, how would its price be decided? It would be decided by how much
one is trying to buyand how much one is trying to sell it for. Bitcoin price is
calculated by a technology called 'blockchain.'
Reasons
for the difference in Bitcoin Prices:
·
Average price estimates
·
No standard pricing
·
On-demand and supply
·
Arbitrage
·
Availability on
different exchange platforms
·
Market liquidity
Thus
it can be said that bitcoin price
is a thing that cannot be predicted so far, and it changes every day. It is
free from the government's control or any central body so that it can be
beneficial for unbanked and underbanked regions. It is the quickest and easy
way of transferring money.
