Bitcoin has been the center of every conversation in the cryptocurrency world since its inception in 2009. During that time span, Bitcoin had plunged all the way to 77%. Although, this is not the first time that this had happened, just after it began trading a couple of years back; it has plunged all the way to 70% four times which we knew that it came right back up and started climbing back up and soared to its all-time high in 2018. Its’ coin ranking will still continue to rise and retain its place in the market.
In 2018 alone, Bitcoin skyrocketed to $20,000 but also nose-dived to $7,500. Experts are saying that this fall will signal the end of Bitcoin in the coin ranking in the cryptocurrency market.
Fortunately, Bitcoin will not die. According to some experts, it will still play a very important role, especially as a store of value. And even though it had plunged a couple of times, many believe that it is still yet to rise and reach its’ all-time high.
How Bitcoin functions.
Bitcoin’s original purpose was a peer-to-peer online payment system that it really does not need any middleman that we usually trust like banks and another payment gateway which usually checks and verifies the transactions done.
Eliminating the middleman simply means that the possibility of the money to be spent more than once is not going to happen. This is to make sure that this digital currency will not be copied and used over and over again.
With Bitcoin mining, each user is given the private access to connect their computers to a network. The more processing power that they donate to the network means the more Bitcoin that they will be rewarded.
This kind of network system is called the “blockchain”, which acts like a ledger that records all Bitcoin transaction that takes away the control from banks and even Paypal. The power of the transaction is then given back to the person who is doing the transaction. This will end up with fewer transaction fees and gives full control of the funds. No other central agency will be able to touch, freeze, or limit these transactions.
The “blockchain” is typically how the Bitcoin orders transactions. It utilizes nodes that are verification method that ensures that the transaction can be processed. Blocks are what you call the Bitcoin network that groups a number of transactions together. This means that within the time frame of every 10 minutes, a block is approved by the network.
Other forms of Cryptocurrency.
Bitcoin is not the only form of cryptocurrency that is available in the market. ”Altcoins” have also flooded the market recently that offers a bit of variation from Bitcoin in terms of economic models, offering either more or less form of privacy and even another form of mining algorithm. Depending on the trend in the coming month, these Altcoins will be more valuable than Bitcoin and will be worth investing for.
Predicting the future of Cryptocurrency.
While the continuous trend of Bitcoin and other forms of cryptocurrency are still unpredictable. Even market specialists are having a hard time giving expert advice to people who are asking a lot of questions and showing big interests in investing in these cryptocurrencies. There is still no way of telling if investing in Bitcoin will provide a rock solid return of investment in the near future.
In the meantime, as long as more and more people are taking the risk of investing in these cryptocurrencies even though the coin rankings is still undefined to them, the survival of Bitcoin is still in the limbo and predicting its’ death will still be far-fetched. Bitcoin and all others form of cryptocurrency will remain to be alive and set more records.