by Rushali 
Bitcoin this term is in the limelight for the past few months. There is so much happening around this cryptocurrency that it becomes really hard to keep all the updates. Earlier it was said that cryptocurrencies are volatile. Then the year 2020 came and proved that everything is volatile be it your normal currency, your job, your livelihood, everything.
Bitcoins are volatile by nature but then what not is. This year has benefitted bitcoins in growing the popularity and moving slowly on the mainstream path. From November 2020 bitcoin is enjoying a bull run fueled by some big institutional investors. There are many new investors as well who are getting interested in bitcoins. And there are so many things about cryptocurrency that they can easily get confused.
So, we have written this article to provide all the important things to know about bitcoin in one place.
Let’s start with the basic question what is a bitcoin?
What is a Bitcoin?
Bitcoin is a digital currency based on a technology called the blockchain. It is a fully decentralized form of currency that means it is not governed by any kind of centralized government. And there are no intermediary people of government. Bitcoin was founded in 2009 by an anonymous person called Satoshi Nakamoto. His idea was to create a currency that will be based on blockchain and will ensure high transparency and security to its users.
Due to bitcoin’s launch for the first time in history, we have some financial instrument in our hand and not in any central authority. And it operates universally which means it is a global currency.
Bitcoins can be accepted as a means of payment for services and products provided. If you have a store then just display a sign saying “Bitcoin Accepted Here” and many of your customers may start paying you using bitcoins, the transactions can be handled through QR codes and apps. An online business can easily accept bitcoins by just adding this payment option to the others it offers credit cards, PayPal, etc.
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Advantages of bitcoin
There are many merits for using bitcoin. But I will list some of the advantages that will lead to the mainstream adoption of cryptocurrency. And many experts believe that it can become an alternative to fiat currency. For becoming the alternative following advantages may work:
* Faster payment process and low transaction cost.
* Minimum charges and no hidden charges.
* No approval required from any government.
* It is not dependent on any payments from the bank.
* Easy to store as you don’t have to carry any bulky bags to keep your cash.
* Power is in the hands of people and not any intermediaries.
* Confidentiality of the investors as there is no need for any KYC.
* It accepts payment from any sources.
* You can send and receive money with just a few clicks on your phones.
Historic price movements of Bitcoin
Bitcoin has risen around 80% in the last 12 months. It’s the previous high was $20000 recorded in the month of December 2017. And on February 21 it has touched a new all-time high of over $58000. Many big investors like MicroStrategy, Visa, MasterCard have invested in bitcoin in the past few months. Elon Musk’s open support to bitcoin is a well-known affair. His company has not only invested in Bitcoin but also declared that they will start accept bitcoin as the payment option for their products.
Bitcoin has started trading at the price of $13.50 in the year 2013.
Then by the month of April, it reached $220 then again corrected to $70 by mid-April. Then it surprised everybody by reaching $200 to $1075 by mid-November. By early next year, it has dropped by 29% and reached $760. Till the year 2017, the price was trading around the mark of $1000. Then the year 2017 came and it made history and bitcoin’s price reached $19783 but then a major correction came and it dropped below $7000 by April 2018.
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Future Prediction
Due to this pandemic, the whole financial world has shown that there are many loopholes in this world. With the growing recession and inflation, people are turning towards new investment options fr earning some money. And this cryptocurrency is a lucrative world. As many big market players are also investing in this world, many people are also started to invest in it.
Many experts believe that bitcoin may reach $500000 by the year 2030.
- Bitcoin Price Prediction for the year 2021
The year has started with a bang in just the second month of the year bitcoin has reached around $55000. So, we can predict that by the end of the year it can cross $60000.
- Bitcoin Price Prediction for the year 2022
If all the things go well then by the end of this year bitcoin can cross the $70000 levels and it will trade between $50000-$70000.
- Bitcoin Price Prediction for the year 2023-2025
As I mentioned earlier that experts believe that bitcoin will reach $500000 by 2030, so 5 years from now we can expect that bitcoin would trade between $100000-$150000.
We can conclude that bitcoin has a great future ahead by looking at everything above. Many big firms have projects that are based on blockchains and bitcoins, so we can expect a bull run on a long-term basis.
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