For those unaware, Bitcoin has become one the hottest topics in the world of finance and technology. The cryptocurrency had a monumental year in 2017 going from $900 at the start of the year to $6300 by October. It ended the year valued at over $15,000. Jordan Hiscott even said that “we are in an age where technology is changing the dynamic of the business world.” It is hard to dispute the meteoric rise of Bitcoin, and it appears that it is just getting started. Experts predict that the price will climb to $55,000 within the next five years. In fact, Chris Kline who is the co-founder and COO of Bitcoin IRA has predicted that the cryptocurrency will be the best high-growth investment in 2018.
The Bitcoin phenomenon first began in January 2009 as the creation of a computer programmer under the pseudonym of Satoshi Nakamoto. Nakamoto created Bitcoin as a new peer-to-peer electronic cash system. The key feature that would set Bitcoin apart from the competition was the fact that it was decentralized, meaning transactions did not need to go through any third party. Bitcoin transactions are run on the blockchain. The blockchain, also known as the “distributed ledger” is a place to record transactions or any other digital interaction securely and transparently. People have praised the blockchain as one of the most important and innovative technological advancements of the last few years.
As it has continued to develop over the years, the process of buying and storing Bitcoin (relatively) safely has become much easier and more accessible to the public. Nowadays, you have sites like Coinbase.com which delivers a one-stop shop for Bitcoin and other cryptocurrencies. Users can buy, sell, trade and store their digital currencies using the service. Bitcoin is also gaining popularity overseas. Japan has made the cryptocurrency an official method of payment as over 260,000 retail stores and food establishments accept Bitcoin as payment. Russia is also planning on legalizing Bitcoin and other cryptocurrencies as financial instruments in 2018 in order to combat money laundering.
When looking at Bitcoin’s progress over the last few years, it is quite remarkable how it has risen to prominence. In 2011, its value was less than two dollars. Within the last six years, the value has increased by over 4000%. That is about a 670% increase every year on average. Experts see it reaching a value of over $33,000 by the end of this year, which would be an increase of over 175% from its closing number of 2017.
