Bitcoin has been one of the best investments most people have made in the last 5 years. A lot of people have made very good amount of money from it and are still making but there is a problem ;The fear of Bitcoin crash.
Most people sees Bitcoin as a scam while others sees it as a new way of making money. Some people who have made up their mind to invest are confuse. what could be confusing them?
>>Will Bitcoin crash or rise?
In this guide, I will explain to you everything you need to know about the history of Bitcoin and how it operates which will help you to understand the price prediction of Bitcoin. I will also help in answering your question whether Bitcoin will crash or rise especially this 2018 .
What is Bitcoin
Before I start this tutorial guide, I will like us to have the basic understanding if what a Bitcoin is because doing so will help us get the concept of how it operates. Bitcoin coin is the world first digital currency . It is an innovative payment network of new kind of money.
I know you are confused but I will explain.
Just like we have US Dollars, British Ponds and others which are all note or coin in some cases, Bitcoin is a digital form of money . You can use it to make payments just like the way you use your local currency . The good news is that there are now Bitcoin ATM that can turn Nitcoin into your local currency.
Still don’t understand?
Okey, just see Bitcoin as money in digital form just like you have your bank figures.
Bitcoin was created by Satoshi Nakamoto in 2009 but one mysterious thing about bitcoin is that nobody knows who Satoshi is. Two key things I want you to know is that:
- Bitcoin is decentralized . What I mean by decentralized is that unlike your local currency which has a central body that controls it, Bitcoin is being controlled by all the server in the network.
- There are only 21 million Bitcoins that can be created
Having those things in mind, let’s us know see how Bitcoin operates.
How Bitcoin Operates Or Works
Bitcoin operates or works on Bitcoin Blockchain Technology. Blockchain network is the technology that protects Bitcoin against hackers . Blockchain is being powered by a network of computers called nodes. These nodes helps in protecting Bitcoin by working together to verify every Bitcon transactions that takes place.
Nodes verifies Bitcoin transactions using a mathematical equation . How?
Whenever a Bitcoin transaction occur, one node on the blockchain network verifies the transaction using a mathematical equation. This process is known as mining. It is so because those nodes that helps in the operation of Blockchain are being rewarded that is whenever a node verifies a transaction, it receives Bitcoin as reward.
Now that we have basic understanding of what Bitcoin is and how it operates, let us now dive into the main topic which are :
Will Bitcoin Crash Or Rise?
To answer these questions, let’s first understand some facts.
I believe you now that for a goods to rise or fall, it depends on some factors like when the demand is high or low. For instance in a Goldmine, the price of Gold depends on its supply and demand. For example, when a new Goldmine is discovered, the price drops. This is simply because more Gold becomes available and so it is no longer scarce .
This simply implies the more scarce Bitcoin is, the higher Bitcoin price predictions are. So Bitcoin can crash when it is available in large amount and can rise when it is scarce.
Another factor that determines if Bitcoin will crash or rise is news about Bitcoin .
It is believed that :
- When there is bad news published about Bitcoin, there are a lot more people selling Bitcoin than buying Bitcoin. These people sell their Bitcoin for lower prices than the current value so that they can sell it quicklThis causes the price to drop.
- When there is good news about Bitcoin, there are more people buying Bitcoin than there are people selling it. These people buy Bitcoin for higher prices than the current values so that they can buy it quickly. This causes the price to rise.
The 2017 Bitcoin Rush
Bitcoin’s value reached its highest point in December 2017 when it hit $19,498.63. At this point, Bitcoin was one of the most talked about things in the media. Everyone you knew — mothers, grandparents, school teachers and doctors — were all asking “How high will Bitcoin go?”. Bitcoin price and Bitcoin price predictions were two of the biggest trends on Twitter!
This media attention, or “hype”, caused Bitcoin’s price to increase more than it ever had before. It went way, way up. It was crazy! News reporters and financial analysts all made their Bitcoin predictions — which made the public interested. More and more people were trying to buy Bitcoin and so the price increased.
However, soon after Bitcoin reached its ATH, Bitcoin crashed.
Quick note: ‘ATH’ means All-Time High. It is the highest the price has ever been.
The question “when will Bitcoin crash?” had finally been answered. Millions of people were selling their Bitcoin and the price fell to under $10,000.
Other Bitcoin Crashes
Bitcoin’s price has crashed many times over the years:
- In 2011, the price crashed 93%in five months.
- From November 2014 to January 2015, Bitcoin’s value was halved, much like its crash in December 2017.
Another time that Bitcoin crashed was when investors became worried about new laws and regulations. There was news that South Korea and China might ban cryptocurrency exchanges. As you can imagine, this made a lot of investors scared and so they sold their Bitcoin.
Note: There aren’t a lot of laws in place for cryptocurrency and a lot of crypto transactions are anonymous. While some investors like this, it is seen as a problem by mostgovernments.
Bitcoin Price Prediction: The Future of Bitcoin
We all wonder where Bitcoin is going to be 1 year, 2 years, 5 years or even 10 years from now. It’s tough to predict, but everyone loves to do it.
Will Bitcoin Crash Again?
If more countries create regulations/laws for cryptocurrency, more bad news will be published. This means we may see Bitcoin crashing again. Countries such as South Korea, Japan, China, France and the United States all want to create new regulations.
Even though they want to create new regulations, we must remember that:
- This could take a long time.
- It might not affect the price of Bitcoin.
Until then, the most popular Bitcoin projection is that it will continue to rise.
What Is The Bitcoin Price Prediction 2018?
This is the kind of question that starts arguments at dinner parties. Will Bitcoin rise this year? Will it fall this year? Who knows? What is the Bitcoin price prediction? Even though Bitcoin and its technology are very useful and are changing the world, anybody that claims to ‘know’ whether the price of Bitcoin will rise or fall is a liar. Sorry, but that’s the truth.