Bitcoin
Bitcoin is a global digital currency, produced by computer distribution, instead of gold and banks. At the time you are reading this, Bitcoin is the world’s largest digital currency, in terms of market capitalization, which means that its total market value is higher than the other digital currencies.
This appealing cryptocurrency, Bitcoin, has offered traders and investors some promising returns. Let’s bring again in memory 2017 when its price climbed to 1000%. At the same time, let’s be careful and tell our self that this digital currency suffers from a high level of volatility, and has gone through sharp declines at some points.
On the other hand, Bitcoin is being preferred by investors since its price movement doesn’t correlate with other asset price movements, such as stocks or bonds. In other words, Bitcoin is an excellent asset to diversify your portfolio of investments.
Portfolio volatility can potentially be reduced through Bitcoin.
Why Bitcoin is such a unique asset?
The Bitcoin idea came into the light to bring humanity a new system of money that does not allow banks or other governments to be part of it as governing parties. It is a digital currency, which is supposed to compete and substitute the common currencies: British Pound, US dollar, euro. Specifically, Bitcoin was the first digital currency to be launched, even though other digital currencies were produced, they never reached the popularity of Bitcoin.
How Is Bitcoin Traded?
There are two ways of trading Bitcoin: through an exchange and over- the- counter service. If you are looking to make large transactions, then you should go for over- the- counter service. One way to trade Bitcoin is to find a professional and well reputable exchange and set up an account with them. For some exchanges, setting up an account requires taking part in the process of identity verification. For example, Coinbase requires new users to upload a picture of their ID card through the app or the website of the company. Of course, there are some standards which should be met, ID picture should be current and fully visible.
The sharp gains and losses of Bitcoin
The time map below shows the sharp gains and losses that Bitcoin went through over the years:
31 May 2011
Foundation of BTC payment service provider BitPay US$8.80
10 Jun 2011
Height of the first BTC 'bubble' – first legal concerns US$28.92
28 Nov 2012
Bitcoin has first ""halving day."" $12.20
28 Mar 2013
28 Mar 2013
19 Nov 2013
Day after Senate hearing on Bitcoin US$781.83 (high)
18 Nov 2013
US Senate holds hearing on Bitcoin US$476.29
29 Oct 2013
First Bitcoin ATM starts operation in Vancouver US$187.87
2 Oct 2013
FBI shuts down Silk Road, seizes colossal amount of BTC US$125.49
11 Sep 2013
Number of merchants accepting BTC exceeds 1,000 US$121.4611 Sep 2013 Number of merchants accepting BTC exceeds 1,000 US$121.46
30 Nov 2013
BTC market cap. exceeds USD 14.4 billion US$1,120.40
11 Dec 2013
Number of merchants accepting BTC exceeds 15,000 US$990.00
24 Feb 2014
24 Feb 2014 Mt. Gox goes offline US$604.58
28 Feb 2014
Mt. Gox files for bankruptcy US$576.70
25 Mar 2014
IRS declares Bitcoin is property for tax purposes US$586.27
2 Aug 2016
Bitfinex loses nearly 120,000BTC US$607.37
9 Jul 2016
Bitcoin has second halving day US$664.74
14 Jan 2016
Developer Mike Hearn quits Bitcoin US$432.04
15 Aug 2015
Bitcoin fork Bitcoin XT released US$264.87
14 Jan 2015
Bitcoin prices hits nadir of bear market US$170.21
8 Nov 2016
Donald Trump elected U.S. president US$704.02
10 Mar 2017
SEC denies Winklevoss ETF US$1,191.81
1 Apr 2017
Japan recognises Bitcoin as legal tender US$1,079.75
4 Sep 2017
China bans ICOs US$4,631.69
15 Sep 2017
China shuts down cryptocurrency exchanges US$3,226.41
30 Jan 2018
Facebook prohibits cryptocurrency ads US$11,158.39
8 Jan 2018
CoinMarketCap removes South Korean data from prices US$16,178.49
17 Dec 2017
Bitcoin prices hit all-time high US$19,783.21
11 Dec 2017
Bitcoin futures start trading on CBOE US$15,036.96
31 Oct 2017
CME announces plans to offer Bitcoin futures US$6,121.80
14 Mar 2018
Google bans cryptocurrency ads US$9,144.15
26 Mar 2018
Twitter prohibits cryptocurrency ads US$8,449.83
11 May 2018
Authorities raid Upbit, South Korea's largest crypto exchange US$9,014.61
10 Jun 2018
Hackers steal nearly US$40 million from crypto exchange Coinrail US$7,497.34
26 Sep 2018
Crypto miner Bitmain files for IPO US$6,434.65
2 Apr 2019
Bitcoin climbs nearly 20%, surpasses US$5,000
6 Jan 2019
Bitcoin surpasses US$4,000
31 Dec 2018
Bitcoin finishes year at US3,690.19
15 Dec 2018
Bitcoin hits 2018 low US$3,122.34
15 Nov 2018
Bitcoin Cash hard fork US$5,536.845
10 Apr 2019
Bitcoin hits 400 millionth transaction
25 Apr 2019
NY AG announces Bitfinex/Tether court order US$5,054.90 (daily low)
8 May 2019
Bitcoin surpasses US$6,000, reaching highest since November 2018
13 May 2019
Consensus, arguably the industry's largest cryptocurrency conference, begins
13 May 2019
Bitcoin exceeds US$8,000, reaching highest since July 2018
18 Jul 2010
Major BTC exchange MtGox opens US$0.05