The Bitcoin Rate of Exchange: Rise and Fall in US
The Bitcoin rate is always fluctuating due to its high volatility in the market. According to experts, the volatility of bitcoin is seven times that of gold. This high rate of volatility is due to either insufficient liquidity or uncertainty associated with its long term usage and value.
Many entrepreneurs argue in the favor of bitcoin currency and say that if the trading volume is increased, the volatility of bitcoin currency will eventually decrease with the frequent trading exchanges taking place all over the world.
But many believe that volatility does not have any considerable effect on the utility of bitcoin payment system. Bitcoin prices go through both appreciation and depreciation according to market conditions. Currently, the exchange rate of bitcoin is 334.79 US dollars. This clearly means that one bitcoin will be equal to 334.79 US dollars in exchange terms. The bitcoin rate in the US has seen many ups and downs in the past years. Once the price of bitcoin had risen and gone to the peak US$266 in April 2013 and shortly after that, had crashed and went down to around US$50. In November 2013, again the price rose to a soaring all-time high of US$1242 but the prices sharply declined to half of the rates that were in the year 2013.
Initially, digital currency was generated in the year 2009, and had no value attributed to them. The surprising thing is that people do not even know who the inventor was since they held a fictional name. With time however, bitcoins momentum was realized, and they gained in popularity to an extent where the value soared up. At the present point of time, more than 13 million bitcoins are being circulated across the world.
The Bitcoin Rate Bubble
The appreciation and depreciation of the bitcoin rate are referred to sometimes as bubble and bust respectively. Bitcoin currency is recognized as a speculative bubble by many economists as there is still speculation and conjecture involved with this currency. But many economists consider bitcoin as a currency which will quickly rise in the economic market with the bitcoin exchange rate soaring high.
Bitcoin may or may not have an uncertain future in the financial market but it can be assumed by its popularity and its increased use in many countries transactions that it will be present in the global market for a long time and could be used in place of traditional currencies.
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