Recently the trading volumes for popular cryptocurrencies have been on the rise, offering evidence of a comeback. Given the volatility of the markets, many readers will likely still be hesitant to invest in bitcoin until it becomes fully established as an independent global currency. Those who are still considering getting in on the ground floor can read on to find out more about bitcoin and what to expect from its performance in coming years.
What is Bitcoin?
Bitcoin is a form of cryptocurrency that was created independently of government printing presses in 2009. It uses blockchain technology to keep track of transactions and verify its legitimacy. The global response to bitcoin has been quite varied since its rise to popularity, with some governments facilitating its use and others banning it completely.
How is it Different From Fiat Currency?
Unlike fiat currency, which must be printed and legitimized by a government and distributed through traditional financial channels, bitcoin is an independent, decentralized currency. There is no central bank or administrative body that is responsible for controlling bitcoin and users can transfer it via peer-to-peer networks. This allows it to function internationally without the need for government intervention.
How Has it Been Performing?
The international market for bitcoin has been extremely volatile as this new and innovative financial product establishes itself. Its creators took one important step toward stabilizing markets and making it easier to use in August of 2017 by using a splitting method called hard fork to give rise to bitcoin cash. This has not only increased the cryptocurrency’s popularity but has also increased its overall usage among diverse populations.
Despite this step, the value of bitcoin continues to fluctuate a good deal. While critics of bitcoin and cryptocurrency more generally have been predicting that it will die out any day now, the reality is that its value is expected to continue its rise. Some are anticipating rapid growth for this already popular cryptocurrency in the coming year.
Is it Just a Fad?
Although the cryptocurrency markets have been quite volatile since the introduction of bitcoin, most experts believe that it is here to stay. It remains one of the top four contenders in digital currency and is still growing in popularity despite periodic setbacks. Learn more about these trends here to get started.