Febbit Blog

Rise and Fall of Bitcoin

After Satoshi introduced the Bitcoin, it took users a year to take first transaction place and that was done just to satisfy the curiosity of the users. The first ever conversation from fiat money to Bitcoin or vice versa recorded in In January 2009 when Martti Malmi sold 5,050 BTC for $5.02 to ardent anarcho, a venture capitalist with the help of bitcoin core coder. The first ever bitcoin exchange site was opened 6 February 2010 named bitcoinmarket.com and the famous first-ever commercial transaction was recorded on 22 May 2010 when a guy bought two pizza worth $30 for 10,000 BTC (the Pizza seller might have become the millionaire by now if he knows where his bitcoins are).

From there the price rose steadily and the first time in the history of Bitcoin, as Bitcoin hit an all-time high of US$1,124.76 on November 29, 2013. It was something that couldn’t be avoided and bitcoin enthusiast called cyber-libertarian were celebrating the surge in Bitcoin price. Though it was not last long as the bitcoin price had started dropping down dramatically in following days. But it definitely left an impressive effect on Bitcoin presence. In mid-November 2015, it reached $2200. That surged consolidate bitcoin’s place as a new form money and proved itself as the powerful contender that can replace the fiat money.

The steady rise of the Bitcoin price finally resulting in something called bitcoin big bang on 15 December 2017, when it topping out a whopping $17,900. Unbelievable right? Though bitcoin could not hold that astounding price losing one-third of its value in 24 hours, dropping below $14,000 on 22 December 2017. On 5 February 2018, Bitcoin's price drops 50 percent in 16 days, falling below $7,000. Though it managed to go up again and currently trading at $9110.01. These crazy deflections in Bitcoin’s price clearly indicate the investors and crypto traders that something was fishy there and it’s kind of bubble that could be wrapped any time. Though the current surging price of bitcoin clearly signals better future opportunities not only for investors but common people as well. Bitcoins may replace fiat currency

People have started accepting Bitcoins in exchange for services and goods. Colleges such as Cyprus universities accept Bitcoin as tuition fees. An automotive manufacturer such as supercar manufacturer Lamborghini is allowing you to buy any of their cars in exchange for bitcoins. In fact, there are the number of BTM (Bitcoin ATM) popping up across the country allowing you to buy some bitcoin directly in exchange for fiat money. Bitcoin’s underpinning technology gave a birth to hundreds of other altcoins such as Litecoin, Dogecoin, and Name coin. Financial institute finally started working on their own blockchain models based on Bitcoin blockchain.

Not hundred but thousands of blockchain startups are accepting the bitcoin and few other major crypto coins such as Ethereum and Ripple instead of plain fiat money. Even the government is responding the Bitcoin acceptance positively compared to earlier when it was believed that Bitcoin is Ponzi scheme.

An Endangered Species

Bitcoin advocates believed the late 2017 peak was not a bubble, but the natural upward progression of the price as Bitcoin increased its share of the economy; e.g. e.g. Rick Falkvinge, after the surge of March 2013 stated that The Target Value for Bitcoin Is Not Some $50 or $100: It is $100,000 to $1,000,000 and Cybersecurity pioneer John McAfee recently set a $1 million price target for Bitcoin by 2020. And there is one solid reason behind the prediction of the steady rise of Bitcoin price. Values of commodities like corn, oil, or gold often change (in this case goes down) when producers pump out supply to meet demand, creating inadvertent gluts. Bitcoin’s supply, in contrast, is forever fixed, by computer code, at a total of 21 million coins (of which about 80% have been produced). And nothing drives prices up like scarcity.