A Bitcoin was only worth a few dollars or euros in 2012 when there were still very few marketplaces offering it.
It settled around 10 euros (13 dollars) at the beginning of 2013 before starting a powerful bull market which will make it reach a peak around 1000 euros (1150 dollars) at the beginning of 2014. The first interest for Bitcoin outside the purely geek sphere appear. The boldest first businesses are starting to accept bitcoin payments, and the financial world is watching this new asset with a cautious but keen eye.
Things then got more complicated with two difficult years in 2014 and 2015. In early 2014, Mt Gox, at the time the largest marketplace for Bitcoin, went bankrupt and many bitcoins were lost. It’s a big blow to the crashing market. Bitcoin loses 87% of its value to fall back to around 180 euros (200 dollars). The year 2015 remained gloomy with assets that changed little. It was, however, in this period that interesting ‘’ altcoins ’(other cryptocurrencies created after Bitcoin and more or less inspired by it) appeared, foremost among which was Ethereum (ETH). They will help diversify the ecosystem
Why is Bitcoin volatile ?
We have seen it: the price of Bitcoin has continued to fluctuate, sometimes strongly, since its inception. It is a much more volatile asset than equities, which are already considered the most volatile in the family of so-called traditional assets. There are two main reasons for this volatility:
- Bitcoin is a relatively young asset, compared to other asset classes like publicly traded stocks that have been around for decades, or more significantly, to assets like gold or real estate. Bitcoin therefore seeks its price, which is subject to strong fluctuations of up to more than 10% per day when supply and demand occur in periods of frenzy. Even though Bitcoin has strong fundamentals, many of its large swings are largely due to speculation.
- The cryptocurrency market is still very poorly capitalized compared to other markets like stocks and bonds. At the end of September 2019, it represented 210 billion dollars, Bitcoin alone representing 145 billion in this market. These sums may seem large, but in financial markets, it is only a drop in the ocean. So it doesn't take so much capital (in the eyes of big players in financial markets like hedge funds) to cause cryptocurrency market prices to fluctuate up or down significantly. The market is therefore still in a phase of maturation. A gradual increase in capitalization with the arrival of new players will make the market less prone to severe excess volatility.
What will the price of Bitcoin be in the future ?
A question that is impossible to answer precisely. The price of Bitcoin varies greatly and short-term price reactions are very difficult to predict. But from an investment perspective, everything suggests to date that Blockchain and cryptocurrencies represent a major evolution in the digital and financial world. The value of Bitcoin should therefore continue to appreciate over a long-term horizon. We invite you to use our ROI (return on investment) calculator to check how much you would have gained (or lost) by investing a specific amount on a specific date in Bitcoin! Blockchain projects or smart-contracts carried by Ethereum even have the capacity to disrupt certain sectors such as banking or insurance. The exchange of value should also be much faster and greatly facilitated. But all of this takes time. Bitcoin alone has characteristics that make it a unique asset, first in terms of a store of value and probably tomorrow in terms of a much larger exchange currency. Issues of decentralization and security of exchanges are at the heart of many debates. Your best bet is to keep abreast of the big news in the ecosystem so you don't miss out on major developments that may herald future increases in the price of cryptocurrencies.
What is the best platform to buy cryptocurrency in 2020 and 2021?
If you want to trade or stack a large number of cryptocurrencies, I recommend Binance, which offers the lowest transaction fees on the market. With this link you will be able to get 10% bonus on your purchases with this link: https://www.binance.com/en/register?ref=QADIUYWM
If you are a beginner in this field, I recommend Swissborg, who will search, thanks to their AI, where to buy bitcoin and the most famous cryptocurrencies at the best price without having to compare prices.
If you want to invest with SwissBorg, they offer, for the launch of their platform, a ticket is offered to you, worth between 2 and 200 euros in bitcoin, once you have made a transfer of 50 euros or the equivalent in cryptocurrency. You can then withdraw it for free!
Here is the link for those interested : join.swissborg.com/r/remiC4JD
