In a recent report it was possible to know that the search “What is Bitcoin?” Continues to grow in Google, despite the sharp decline in the crypto market. In this post we are going to tell you in a simple way what Bitcoin is and its current situation.
On January 3, 2009 was born what many consider the currency of the future. At the same time, another crowd sees it as a clear bubble and reduces it to a scam. The truth is that that day began a revolution, which takes 10 years to live.
Bitcoin is a financial asset that allows us to make monetary transactions between members of a community that accept their value.
As a currency it does not physically exist, it is digital and it is represented by an alphanumeric series. It is us, the users, who give a value for its use. We are the users who decide their price from our own activity.
Bitcoin allows us to make transactions between people without any intermediary and without borders, with a simple Internet connection.
The Bitcoin system was born to be an alternative to the traditional monetary and financial system. In its first months of existence, virtually nobody cared. After a decade, it is on everyone’s lips and more and more are interested in this cryptocurrency.
How is the price of Bitcoin defined?
The price of Bitcoin is not related to any asset that makes it base, but is given by the trust and use that users give it and is set with the rules of supply and demand.
When more people have a use and want to buy it, the higher its price.
“Remember that it is the market that tells us what is currency and what is not. And the market has spoken. Bitcoins have value because the market says they have value, said Michael Suede, Austrian School.
Despite the market crash, Bitcoin is worth more than 2 ounces of gold in cash. Does an asset with that value tend to disappear? Keep calm and do HOLD. Andrés Tejero, CEO of CryptoTendencia.com
Current situation
At the time of writing Bitcoin approaches the psychological support of US $ 3,000, which is very “nervous” to the crypto market. The price is in free fall this 2018, especially in the last weeks, when the Bitcoin Cash Fork was produced, which gave rise to Bitcoin ABC and SV.
In the last 24 hours a total of 268,003 transactions have been carried out, a volume more than interesting for the current market conditions.
One of the questions that arises is … Why are there so many operations if the market is so adverse? If we look at the image below, it can be clearly seen that since mid-year to date the number of transactions has risen steadily.
Future of Bitcoin
From CryptoTendence we are convinced that the future of Bitcoin, together with its underlying technology, Blockchain has a more than promising future. We do not say it for an issue of FE, but rather for future expectations, among which we highlight:
- The volume of transactions grows steadily
- There are more and more Bitcoin addresses
- The OTC market increasingly has a higher volume of operations
It is almost a fact that in 2019 there will be ETFs that replicate Bitcoin, giving an important flow of money (especially from Wall Street).
The most important point and that we must not lose sight of … Only 21 million Bitcoins will be issued, not one more. That transforms it into a scarce good.