From the end of 2017 to the beginning of 2018, cryptocurrency was making the news headlines on a daily basis. The most dominant of all of these was Bitcoin, a decentralised currency that created a lot of excitement and just as much mystery. The traditional media outlets and just about everyone on social media were talking about the rise of bitcoin, providing regular updates on its exponentially increasing value.
This rise of bitcoin was spectacular and shocked most people. From mid-September 2017, when the price of 1 bitcoin was $2,900, the value peaked at $19,783.06 in mid-December. An increase of almost $17,000 in just three months, or 582%.
A Useful Currency?
A lot of the increase in bitcoin’s value, and therefore many of the other cryptocurrencies that also experienced astronomical price rises, was down to speculators buying this revolutionary “currency” in the hopes that it would increase further in value.
At the time, some pundits were predicting that bitcoin would increase in value from anywhere between $20,000 and $100,000 per “coin” in just a matter of years. The proceeding frenzy led to trading volumes of around $2 billion per day, as people scrambled to hoard as much bitcoin as they could. Read More...