If you never heard of Bitcoin, well the simplest way for me to say it that it’s a payment network that uses its own currency, also called Bitcoin. Bitcoin uses peer-to-peer (p2p) network which is the same as BitTorrent. As a hardcore BitTorrent user, I find that Bitcoin is just fascinating. So when I first heard about Bitcoin, what I did was I download the Bitcoin-Qt client and wait for it to sync completely with its network. Without knowing that Bitcoin-Qt is a wallet, I kept on seeding to the network. Later on I find out that it price have leaped to a ridiculous price and I find out that I actually able to get Bitcoin. And that’s how I started to get involved with Bitcoin.
I’m not writing about the History of Bitcoin because I’m pretty sure that if you google it you’ll find the history easily like how It was created and who created it. Now I’d like to write about the price compared to real currency.
The Price History
Bitcoin price history – Coindesk
Bitcoin price is volatile, which means that it change dramatically. At the end of the year of 2013 and the start of 2014 the Bitcoin price reached its peak at over the US$1000, which is believe due to several reasons like the closure of Silk Road, the illegal drug bazaar that initially gave the currency a bad name; the currency’s first Congressional hearing; and its rising popularity in China.
In the 2014, the price of Bitcoin continued to seek downfall. Although it did rose in the middle of the year, it continue to dropped. By the end of the year the median of the price is US$300. This is mainly due to PayPal proclamation of partnership with three major Bitcoin payment processors – BitPay, Coinbase and GoCoin and takedown by the Chinese authorities.
Between January and October this year, the price is averaging US$250. At the end of October the price reached US$326 and the start of the November the price became bullish where it reached US$450. Now, the price is trading US$350 for all major Bitcoin exchange.
Is Bitcoin a Good Investment?
Personally for me, I think that Bitcoin is never a good investment. No one actually can predict the price trends, here one article that predicts the price of Bitcoin will reached US$600 by the end of the year from Wedbush Securities, well I think it will not go for that.
For me, my investment in Bitcoin is Just For Fun, which sound just like the motto of this site. My words for those who wants to invest in Bitcoin is that get to know the trends first, feel the market and buy in small amount.