World’s largest cryptocurrency, Bitcoin price tipped at $60,197 at 12:34 on Sunday and continued to oscillate around the $60,000 mark. It is currently nestled at $59,599.00 at the time of writing. The crypto has trebled itself over the past three months, worth $20,000 in December 2020.
Veteran Investor’s Advice on Bitcoin Price
Veteran traders, drawing from experience, sound alarm. What, climbs steeply, is bound to come down, some point out. However, the line where most opinions converge remains: to invest judiciously in order to earn substantial gains while mitigating the risks.
Bitcoin price is further bolstered by the investment from corporate giants. In February 2021, Bitcoin rose by 72% after Elon Musk, CEO of Tesla Motors, invested 1.5 bn into it.
It is to be noted that despite its sky-high selling price, one can buy even $5 worth of BTC shares. Smaller Bitcoin shares, called Satoshis, can be purchased for smaller prices.
The Early days of BTC
Bitcoin’s dramatic trajectory, since the 2017 crash has many stories, statements, and predictions recorded alongside. More eventful has been its ride during the early days of its invention. Many remember, not long after its creation, a Florida-based software professional purchased two pizzas for 10,000 Bitcoins. Indeed, during 2010-2012 huge transactions in the range of 90,000 BTC were made to unknown wallets for a network fee of around $700. This was not a rare occurrence back then with transaction fees less than one US cent per transaction.
Back then, people gave away BTC practically free. For instance, Gavin Andresen and others gave out 10,000 BTC by building a bitcoin faucet dispensing funds for free.
Yet another set of individuals playing the game of Second Life, in the summer of 2011, would spend close to 94k BTC every 30 days on Linden dollars. Platforms like Virvox enabled the transfer of thousands of Bitcoins into the economy of Second Life to buy digital cars and virtual mansions. In early 2011, Silk Road began its operations channeling thousands of bitcoins into the underground marketplace. In June 2011, a famous article reported sheets of acid (LSD) being priced at 50 BTC each – those amounting to a whopping $ 3,000,000 today.
In spite of this, early adopters were not those with a casual approach. There were meetups to discuss the prospects and the single-digit attendees soon multiplied in numbers at the subsequent meets. Discussions were held over the concept paper of Nakamoto which underlined the requirement of far lower transaction fees compared to traditional finance. Adding to the at was the novel technology backing it with strong cryptographic protection. For some others, though, cryptocurrency was inseparable from politics.
On the Underside
The performance of Bitcoins has been profitable for most parts of its journey. Investment stalwarts are calling out several folds increase in the following years. There are naysayers, however, who still regard Bitcoin as a bubble that will soon fizzle.
The bursting of the Bitcoin bubble is a very unlikely scenario given the strong backing of corporate institutions and their voluptuous stake in it.