The fact that Bitcoin is decentralized and uncontrolled by any bank, government or a private entity but instead is code free and public, works according to the offer/demand standards and the value of transactions made, makes it really difficult to determine a regular price on Bitcoin. We need to remember that unlike cash currency, it is universal and the trade is quite easy to perform to the general public so the number and value of transactions are quickly growing while Bitcoin Price is constantly flowing.
Bitcoin universal growth
Being called “the most unstable currency in the world”, Bitcoin priceis as variable as the same bases that support them. In this year, the price of Bitcoin has actually increased in extreme proportions, placing the cryptocurrency in the first place of the most exchanged currency in the world, yes, even over FIAT money. Actually, last month price (July 2017) was around 2.400$ meaning a 500% of growth in only one year.
Despite the uncertainty about the possible criminal agenda on Bitcoin and the fear generated by the legality and creation of the cryptocurrency, truth is that it is being used in all kind of commerce all over the world. And we are not talking just about buy and sell of stash but also service market. Some countries like EE.UU, China and more recently Japan use Bitcoin as a quite regular way of trade; Japan has adopted Bitcoin so much that you can pay even gas bills with it.
Nevertheless, there are no countries in the world that have already accepted Bitcoinas the national currency, but that doesn’t stop it from being adopted by more and more countries and in some cases, firmly embraced by their governments. Finally, the price is only determined by the proper users, and that keeps it flowing low and down undeterminable.
Why is Bitcoin so popular if it is so unstable?
Being Bitcoin price and stability so uncertain, it would be logical to think that the currency would create doubts and suspicion and wouldn’t be so popular. But, even when the rumor and the fear totally existed, it didn’t stop the growth of Bitcoin, why is that? Well, it seems to be all thanks to the privacy, simplicity, and safety it offers to both parties of the exchange.
Bitcoin works with blockchain which is a system that allows long distance devices to connect directly to each other by sharing and synchronizing the information in order to create a network of support between the same users. This way, every transaction, creation, trade is completely public and can be certified by any other user to avoid the misusing of the cryptocurrency. By registering every transaction directly in the blockchain ledge which is unalterable (no record can be erased) and it can only be actualized by general consensus. Besides the security this system represents, Bitcoin is also designed so both parties can close their transaction quite easily unlike regular money exchange which is so much easily sent than received making a so much more friendly way to trade and exchange despite Bitcoin price instability.