Bitcoin came into existence as a decentralised form of monetary exchange that was based on cryptography for its management. It was created in 2009 by an individual who goes by the pseudonym Satoshi Nakamoto. Like every new innovation, the emergence of bitcoin as a form of currency encountered initial lack of acceptance and some discouragement. It had its ups and downs before it was able to break barriers and gain worldwide recognition as a form of investment and an indispensable commodity.
But unlike all other forms of currency, Bitcoin does not have any regulatory authority to provide guidelines and oversight functions in its management. There are approximately 11 million bitcoins existing right now. While transactions on credit and debit cards can be reversed, Bitcoin transactions are irreversible.
In early 2010, Bitcoin became a subject of investment because of the tremendous rise in its value. Although Bitcoin is known for its unprecedented volatility, it can still be used as form of long term investment because no matter how much it crashes, it would still appreciate at the long run. For instance, it rose from $5 in 2010 to $243.26 this year, so if anyone had bought some of it then, imagine how much he would have made now. No matter how much it crashes, it can never crash below $100. And that is still a staggering profit from $5.
And considering the way it has become widely accepted worldwide, its value will only continue to rise and drop a little bit once in a long while. Its value would be taking about 10 steps forward and a step backward. If its value rises 10 times and drop once, is that not an overall rise in value?
Bitcoin has now become an indispensable commodity as more and more organizations now accept it as a means of payment. Although, it is a very volatile form of currency whose value fluctuates frequently, one bitcoin is equivalent to several hundreds of dollars. While the volatile nature of Bitcoin has prevented people from using as a means of value storage, its volatility has boosted is being used as a subject of speculation thereby being traded.
However, experts have predicted that in three years, its value will be 20 times what it is now. While a lot of investors have acted on this prediction, others see it as a form of speculation in itself and so should not be given more attention than that of a mere speculation.
With its current market rate, Bitcoin market is said to be worth about 7 billion dollars and its daily transactions is said to be worth millions of dollars. In summary, Bitcoin has grown to become a subject of investment. It has also become an indispensable commodity and has gained so much popularity that it has about 434 meet-up groups with 45,000 members in 300 cities located in 60 countries. So, the chances of a currency that has gained so much acceptance crashing totally are almost negligible.