Technology has invaded practically all parts of our lives. The fact that it’s changing the very face of what we call money should be no surprise. A diversified portfolio is the key to financial stability and sound investment strategy, so should you consider investing in Bitcoin, the wave of the future? We think the future is now, and despite its volatility in the past, Bitcoin is a stable and worthwhile investment.
What were the main issues with Bitcoin’s stability?
When Bitcoin was introduced in 2009, it had a value of only a couple of cents. But as the cryptocurrency gained in popularity and started to become an attractive option for investors, the price of Bitcoin climbed. In early 2017, Bitcoin reached an all-time high, with values over AUD 26,800 on Australian local exchanges. But that didn’t last.
Bitcoin hadn’t even been on the market for ten years in 2017 and 2018, and the concept of cryptocurrency is such new territory, that many investors did not know how it worked. Mt. Gox in Japan were unaware of how Bitcoin values were determined, and in 2018, their ignorance cost the Bitcoin market dearly.
Mt. Gox, which is now defunct, was a cryptocurrency exchange in 2018. When Bitcoin was still experiencing high prices in early 2018, Mt. Gox began to liquidate around $312 worth of Bitcoin from February to June of that year through an exchange called BitPoint. Instead of auctioning the Bitcoins, Mt. Gox dumped a massive amount of coins on the exchange. Naturally, the market responded with a dizzying nosedive. The demand for Bitcoins in Japan dropped, with the rest of the world shortly following. Global prices of Bitcoin plummeted and stayed low. That is, until May of 2019.
What else impacted the Bitcoin market in 2018?
2018 was a bad year for Bitcoin. In January of that year, Facebook banned cryptocurrency ads, and then Google followed suit with their AdWords advertising platform. Despite the advertising ban on these major platforms, slowly, the market for Bitcoin started to recover in early 2019. But it made a considerable jump in June, when Facebook unveiled their own form of cryptocurrency, Libra.
How is Libra different than Bitcoin?
There are many differences between Libra and Bitcoin. A central entity controls Libra, in this case, the Facebook corporation and its group of backers, known as the Libra association. Bitcoin, on the other hand, is a decentralised asset that is traded peer-to-peer with no single entity owning or controlling Bitcoin. Bitcoin is also inherently deflationary, with only a known 21 million Bitcoins in existence. As more are mined and added to the blockchain, values rise.
What does Facebook’s Libra mean for the cryptocurrency market?
Bitcoin is a lot more stable and has been hovering around AUD 15,500 for the last few months. Thanks to Facebook, a new digital currencies door has opened, and the future is sure to hold many exciting paths for the cryptocurrency market.
Buying Bitcoin has never been easier, but it’s best to purchase the product face-to-face with a real person, and where you get your Bitcoins delivered on-the-spot. You can also sell Bitcoins in a face-to-face exchange for instant cash.
The cryptocurrency market is on the march. Don’t get left behind. Start your Bitcoin journey NOW with a reputable seller like Bitcoin Dealers.