The bitcoin value will skyrocket in the future as more and more merchants accept it as a form of payment.
For those who do not know – Bitcoin is a virtual e-currency that has no physical existence and cannot be carried in a wallet in any form. When you consider the fact that there is a limit to how much cash you can carry physically, you begin to realize the importance of the safety and security that digital e-currencies provide.
When you carry a check to the bank, it gets credited to your account after which you can withdraw it anytime. With bitcoin, there is nothing to carry in physical forms of paper, plastic, checks, and is instead stored within digital devices and maintained in a public ledger that can be accessed by anyone at anytime through the use of phone apps, computers and other digital devices.
Why the bitcoin value differs from regular currency value
Banks do not carry all the cash they are responsible for. They are only required to maintain 10 percent of all deposits in physical form at any given point in time with the rest being able to be given out in things like loans.
One of the major differences between cryptocurrency and banks is the issue of control. Paper requires the institution of a central authority and the mint. The distribution of bitcoins is done through computers, requires software, and is run by a peer-to-peer network within a virtual ecosystem.
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.
You maintain your storage of bitcoins in a digital wallet within your computer or online website. One you purchase bitcoin at a certain price through one of these exchanges, the bitcoin value may go up over time.
Without a central regulation authority over the Bitcoin value, it allows the people to dictate the fluctuating rates. At one point in time the value of a single Bitcoin even went above 1000 dollars. At another point, it slumped to below 20 dollars. The e-currency has always been volatile but hopefully in the future it can settle down to a definitive value with some sort of educated control being exercised by the various governments.
The value is comprised of various factors like how many were mined in a given day, bought, and sold. Also, regulations from China, Russia, the United States, and other countries all have an effect on what the value entails as well – with the Bitcoin Price Index (BPI) as the most widely accepted accurate price at any given point in time.
Bitcoin value fluctuates daily, hourly, and basically every minute. This is one of the reasons why bitcoin trading is so popular. This type of volatility goes on 24/7 and there is no closing Bell for the trades. Stock markets for instance close at 4 PM and trading stops.
The future bitcoin value.
Looking at the value of bitcoin for the future, it looks to be a growing commodity. Yes it’s e-currency but it’s only five years old at the time of writing this.
The future has both negative and positive aspects to it. As of right now the only negative that I can see is possible regulation from governments which some bitcoin enthusiasts will tell you may not be a bad thing at all because proper regulation can actually be a good thing.
Their are so many positives for the future because it eliminates a lot of the corruption involved with banks and governments. Take a look at the companies who have latched on to bitcoin already. Companies like Apple, Expedia, Dell, TigerDirect, 100 flowers, and a whole lot more. Seems like every month more and more companies are starting to accept digital currency as a form of payment. This type of acceptance leads many to believe the value of bitcoin can only rise because with more and more companies and people using it, the more it will rise higher.
Since bitcoin will be capped at 21 million, the price will soar over $10,000 very easily. This would happen to the dollar as well if all of a sudden the United States stopped printing the dollar. Can you imagine what would happen to the economy if the dollar stopped printing?
Because there’s so many exchanges that determine the bitcoin value it is widely accepted within the bitcoin community as accepting the Bitcoin Price Index (BPI) for the true value of bitcoin. You can read more about the bitcoin price index here.
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