How to look up the rate for Bitcoin? What does it depend on? What to watch out for when it comes to costly investments and what makes this currency stand out? The answers to these and more questions can be found in the article below.
The era of new money
Every transaction requires means of payment in order to be successful. Back in the ancient times, these were goods exchanged for other goods. Over time, money was invented, and we use it to this day, although obviously it has taken many different forms over the ages. Every country has a different currency used on its territory, there are many dozens of them in total. Another novelty in time were payment cards, and then digital banking and mobile apps, which made it possible to conduct money transfers and make payments both at brick-and-mortar and online stores. The latest big thing is cryptocurrencies – which is entirely virtual money that cannot be withdrawn from an ATM or touched. The most successful one on the market is Bitcoin (BTC) – a currency invented by a group of people going under a pseudonym of Satoshi Nakamoto. In this article we will explain how to look up the latest bitcoin rate (daily, weekly, monthly and annual), what impacts the prices of cryptocurrencies, the sales figures and what to watch out for when it comes to costly investments. We will also say a few words on blockchain.
Bitcoin – the best rate on the cryptocurrency market
As of today, the share of Bitcoin constitutes more than 30% of the entire digital currency market. What is more, it is characterized by an incredibly high capitalization, which amounts to 240 billion USD (American dollar). The daily volume of Bitcoin is more than 10 billion USD. It is worth noting that BTC is a deflationary currency, which means one that stops multiplying after going over a certain threshold. There can be no more than 21 million BTC in circulation. This mechanism Protects the cryptocurrency from inflation, as well as guarantees constant price growth.
The Bitcoin network was created thanks to the Blockchain technology, it also utilizes the very strong SHA-256 encryption algorithm. Every transaction conducted within the system needs to be Verified – on average, verification takes about 10 minutes. According to estimates, the users of the system make 7 transactions every second. The ledger stores addresses, dates and amounts of BTC transferred.
Bitcoin – the rate. A modern cryptocurrency
The Bitcoin cryptocurrency is a widely available form of payment. It differs from traditional currencies with its lack of a centralized issuing institution. Which makes it completely Independent from banks and national governments, it is of a decentralized nature. It is used in many countries, which means no need to bear costs related to currency exchange in case of transactions with foreign counterparties. There’s no need to run a bank account in order to use it. Payments in the Bitcoin system are instant. You don’t need to wait for outbound and inbounds sessions (as is the case with banks, where transfers take as much as several business days to be booked). The transactions made between users are anonymous, fast and secure. They take place within the same day. Bitcoin is a P2P type network, which means no need for middlemen of any type. BTC makes it possible to easily bypass all the inconveniences characteristic of the traditional payment system. At exchanges that operate 24h a day you can look up the daily, weekly, monthly and annual rate.
Bitcoin – charts, rates, transactions
In order to buy Bitcoin, all you have to do is make use of the offer of dedicated companies, such as Revolut for example. You can also use the so-called Bitcoin ATMs, which are devices that intermediate in depositing and withdrawing cryptocurrencies. The third option is cryptocurrency exchanges, which operate 24h a day. Each of these options allows to come into possession of the most famous cryptocurrency in the world.
In order to be able to use all the conveniences offered by the Bitcoin system, first we need to set up a cryptocurrency wallet. The official website of Bitcoin features a list of all the trustworthy wallets. The user can choose between personal computer wallets, mobile wallets as well as hardware wallets or online wallets – accessed in a web browser.
Next we have to generate a unique address (which serves the same function as a bank account number). The user can generate an infinite number of such addresses (that’s why Bitcoin is used by members of organized crime, who need anonymity more than anyone else). Which means that every subsequent transaction can be conducted through a different address. The address can be shown to other people without worries. It is also called the public key, as the opposite to the private key, which ensures access to the funds stored in the wallet. Some people suggest using a generated address only once. Taking the security measures of the Bitcoin network into account, however, it is not absolutely necessary.
Bitcoin rate – what does it depend on?
The BTC rate mainly depends on the supply and demand of this cryptocurrency. It is not controlled by any institution, it operates in a completely free-market environment. Depending on how Bitcoin is valued for the investors, the rate rises one day and drops the other. That’s why the coverage in media (both the industry and mainstream type) is so important – the more players on the market, the better for the rate. Not any less important is the acceptance of Bitcoin among the tycoons of the centralized market, as well as application of the Blockchain technology in international corporations. If the biggest players recognize Bitcoin as a fully legitimate method of payment, other companies will follow, which will cause the exchange rate to successively rise.
The biggest influence on the cryptocurrency price is held by governments and transnational institutions (such as OECD or WTO, for example). The countries where it is forbidden to use cryptocurrencies contribute to rate drops. Cryptocurrency exchanges get shut down there, and the so-called Bitcoin mines cannot function efficiently. On the other hand, however, the fact that there are legal regulations being implemented gives the cryptocurrency more credibility, which might make more people willing to use it, obviously impacting the rate. Lack of legislation results in using Bitcoin for criminal activity, money laundering, terrorist financing, tax frauds.
A negative impact on the Bitcoin rate is caused by myths questioning the security of this system. Once in a while there are reports appearing in the media on spectacular Bitcoin robberies taking places on exchanges. News of this type don’t exactly encourage potential investors to put their money in the cryptocurrency. The supply and demand shrink, and the rate drastically drops. Those who base their choices on reports like these, however, don’t take into account that – statistically speaking – the owners of bank accounts are much more likely to fall victim to hackers or scammers. And yet despite of different incidents they continue using digital banking. In the Bitcoin networks things like this are relatively rare.
Favorable to the value of Bitcoin are legal regulations that are friendly to decentralized payment systems as well as the difficulty of “mining” the “coins” (we have covered this process in previous articles). Major political events are also not without impact on the Bitcoin exchange rate and sales figures.
Bitcoin rateing: do the charts always tell the truth?
Despite the Bitcoin (BTC) being the most famous cryptocurrency in the world, it is yet to become a fully legitimate payment method that would be accepted by majority of businesses and outlets. With the current state of things, the value of this cryptocurrency depends mainly on the investment demand, which leads to speculations taking place on the market. The cryptocurrency market struggles with the problem of maintaining financial liquidity, which isn’t quite so visible on the exchanges for traditional currencies and commodities. The information spread in the media has a colossal impact on price development. On other types of exchanges, media reports influence the investors’ choices to a lesser extent. The huge price volatility of Bitcoin is something that every person using this cryptocurrency should keep in mind. A chart might look promising at first glance, but the current rate might drop just as fast (sometimes within the same day), leaving traders disappointed.
The Bitcoin price – what influences it?
As we have already mentioned, the Bitcoin rates are subject to the same patterns as all the other assets. The price depends on the supply and demand. However, whereas in case of traditional currencies the supply doesn’t actually have any limits enforced from above, the Bitcoin network has been equipped with an inflation-protection mechanism. It is based on the fact that the number of Bitcoins in circulation cannot exceed 21 million. Currently there are about 11 million of them. Which means that new Bitcoins can continue being mined. How does it take place?
Every computer participating in the process of verifying the transactions conducted by the users is Rewarder for its work with a specified amount of bitcoins (this activity is what is actually called the “mining” or “extracting”). The demand, on the other hand, depends on how attractive as a payment method Bitcoin (BTC) turns out to be to people. With traditional currencies it is different, as their strength depends on the economic situation, especially on the value of interest rates.
The Bitcoin rate depends on many variables that we have tried to present here in as much detail as possible. By using adequate services or exchanges, you can convert the amount of your bitcoins to different currencies, not just USD (American dollar). Keep in mind that at exchanges you should especially pay attention to the volume – that’s where you’ll find the most important data. You can also use dedicated apps to stay up to date, 24h a day, with what is going on on the chart (you can install them within a few minutes). These days, due to the coronavirus pandemic, digital currencies based on the blockchain mechanism are a big thing. People are worried about a complete digitization of money, which would provide banking and government institutions with a full control over the citizens’ financial resources. That’s why decentralized digital currencies are having their renaissance right now. Investors are getting more and more willing to put their capital in BTC. Within the last few months, a huge increase was observed in the interest in cryptocurrency networks. Even regular users are becoming aware that it’s not only traditional currencies that have a value. The topic of cryptocurrencies keeps coming back like a boomerang in the industry and mainstream press alike. Who knows, maybe the time is coming when we will get our paycheck in BTC or in other popular cryptocurrency.