The price of Bitcoin has gone up and down like a rollercoaster this year, with most of the big moves going up. The price of Bitcoin has risen more than 200% this year, but there have been some major downturns along the way. Bitcoin hit the $10,000 mark recently and then soared up to $14,000 before dropping back down near the $10,000 mark again. What is next for the cryptocurrency?
Price Swings Due to New Blood
You might think that the Bitcoin price volatility would be due to current Bitcoin holders moving their Bitcoin, but that is not always the case. There has been a lot of new money into Bitcoin recently, and that has driven the price higher. Delphi Digital said that there while there have been some new Bitcoin buyer, there are not as many sellers. “The active portion of [Bitcoin] supply, which we categorize as the coins that have moved within the last three months, is beginning to slightly increase,” said Delphi Digital to the media, “The new sellers are actually mostly individuals who’ve been holding for three-to-six months.” They went on to say that more than 20% of Bitcoin has not moved in five years and they say that 60% of Bitcoin’s circulating supply has not moved in at least a year.
Delphi Digital said that they expect a little less movement in terms of the Bitcoin price for a little while. They also said that it could be good to wait a bit on altcoins. “Bitcoin is certainly still in the driver’s seat, so trying to time an alt rally could leave you catching a falling knife. It makes more sense to instead forgo some early upside on alts and wait for a strong confirmation.”
Why So Much Volatility?
Why has Bitcoin been so volatile? Bitcoin is actually a cryptocurrency that was never designed to have a stable price. Bitcoin is a secure system because it is not controlled by any central government, but that doesn’t mean the price is stable. The size of Bitcoin’s hash power continues to grow and that makes it more secure, but the price of Bitcoin is not related to its security. When people invest more money in something like gold mining the supply of gold is expected to increase because more gold will be on the market, but that is not the case with Bitcoin because the supply is capped. Because the Bitcoin supply is fixed, the price will fluctuate as demand rises and falls.
The great part about Bitcoin is that it gives people a chance to own something that is outside of the traditional currency system. That is a good thing because Bitcoin is not controlled by anyone. It is not subject to a government taking control and wiping out your investment. The downside is that there are no real regulations in place, but for the most part Bitcoin has proven to be extremely reliable in terms of an investment vehicle and for a payment method.
More companies are realizing that cryptocurrencies are the wave of the feature. Facebook recently announced they are developing their own cryptocurrency called Libra and that news caused a spike in the price of Bitcoin. If a company like Facebook is getting into cryptocurrency that tells people that perhaps they should take a serious look.
Some companies have been ahead of the cryptocurrency wave for a long time including leading online sportsbook BookMaker. They have had Bitcoin payment methods in place for many years and now most of their customers use Bitcoin for deposits and withdrawals. It makes sense, as Bitcoin transactions are fast, reliable and cost effective.
You can get started with a Bitcoin wallet today and begin sending and receiving Bitcoin at BookMaker with no worries about your funds not going through. Check out the latest Bitcoin deposit and withdrawal options at BookMaker today and join the many customers who have already discovered Bitcoin as a reliable payment method.
Check out the latest Bitcoin deposit methods at BookMaker today.
