Bitcoin’s dizzying rise from single digits into four figures in just 18 months has been the factor that has brought it to mass awareness. When the cryptocurrency first appeared on the scene in 2009, little more than a curiosity and proof-of-concept for a technologically super-savvy few, the coins that were mined were worth cents, if that. Those who kept the bitcoins they obtained are now sitting on a 10,000-fold return on investment, or more. Whilst 2012 showed solid growth – compared to any conventional investment – it was 2013’s rise from barely $10 to over $1,000 that hit the headlines. As the price rose, more and more speculators piled in, hoping to make a quick return.

The bubble bursts

The result was a bitcoin bubble. Prices shot far above any fundamentals – in fact, no one can really agree what the fundamentals even are, which was one reason the price rises accelerated so fast. Inevitably the bubble burst, catalyzed by bad news from Mt Gox, and prices returned to the $500-600 range over the course of the next two months. Bitcoin is still highly susceptible to headlines. Check out CoinDesk.com for latest headlines.

Learn more about the Price of Bitcoin at BitcoinValue.net.

 

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