Since the lows its price has doubled and at 9 000 one bitcoin is worth more than six ounces of gold. In 2018 we watched as it plunged to 4 000. In 2017 we watched the price of a single bitcoin surge to 20 000.
Bitcoin has been around since 2009 but cryptocurrencies as in a digital currency that operates outside of a central bank have s. But what exactly is it. With one bitcoin worth 10 000 2017 has seen this cryptocurrency go stratospheric.
Its history why is it so valuable and will the bubble burst. Let s break those influences down a little more. At least supply and demand should dictate the price but the price of bitcoin is subject to a range of influences that mean it can change without warning.
Bitcoin s value derives from supply and demand. Where does its. It makes people wonder why is bitcoin worth so much.
Since the lows its price has doubled and at 9 000 one bitcoin is worth more than six ounces of gold. In 2018 we watched as it plunged to 4 000. In 2017 we watched the price of a single bitcoin surge to 20 000.
Bitcoin offers an efficient means of transferring money over the internet and is controlled by a decentralized network with a transparent set of rules thus presenting an alternative to central. This also increases the scarcity of bitcoin and helps support higher prices. At the end of the day energy costs are the major component of the price of bitcoin and have remained a barrier to new entrants to the bitcoin mining ecosystem.
This makes miners work harder and historically has led to higher bitcoin price.
