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Bitcoin is one of the most talked-about subjects these days, especially in the global financial sector. After spending 2 years trying to stabilize itself and reach a normal state, 2020 was the year when that happened, while it managed to write history towards the end of it and the start of 2021.
The value of 1 Bitcoin is now higher than ever in its history and some experts believe that it can go as high as $50,000. Some of them are even more confident in the potential of this cryptocurrency and firmly believe that it has the potential to become the official universal payment method at some point in the future.
As Bitcoin keeps headlining the news, we decided to look over our shoulder and layout its history – from its creation to rise to power. But first, let's answer one of the most popular questions about it. How do people make money with Bitcoin?
Making a Profit
In order to make a profit, Bitcoin traders must first earn the cryptocurrency. There are two ways to earn it – buying it or mining it. Buying Bitcoins is the easier, but more expensive way. With this process, traders buy Bitcoins at one price, then sell the assets when the value rises.
The second way – mining, lets you earn Bitcoins without making any investments. All you have to do is record Bitcoin transactions. This process is far more complicated than it sounds. To record transactions, you need to solve very complex puzzles. The reward for this process is Bitcoins.
After you earn a certain amount of Bitcoins, you will need to sell them, which is also not as easy as it sounds. Bitcoin has a very high volatility rate and in order to maximize your profits, you need to be familiar with how the price will fluctuate and determine when is the best time to do that.
While this may seem impossible, there are expert platforms which can help you do that. Trading sites such as the Bitcoin Revolution platform use advanced AI systems which analyze the market and make a precise prediction. The daily profitability rate on the aforementioned platform is huge and its system will be of massive help when it comes to making the highest possible profit.
Now that we’ve gotten this cleared, let’s check out Bitcoin’s history.
Bitcoin was created in 2008 by an unknown individual that goes by the pseudonym Satoshi Nakamoto. There have been many speculations as to who this person may be, but none of it is confirmed. Satoshi made the first Bitcoin transaction in 2009 after he/she sold 10 Bitcoins to a cypherpunk, Hal Finney.
2010 was the year when Bitcoin recorded its first commercial transaction after a programmer bought two Papa John’s pizzas for a price of 10,000 Bitcoins. After the first proof-of-concept transactions were completed, Bitcoin infiltrated the black market, where it was most commonly used due to the fact that governments deemed it illegal.
The major success for this cryptocurrency started in 2013 when the value of 1 Bitcoin was constantly going up and reached a peak in January 2014, when it was valued at around $770. But, after a few raids by government officials in the USA, the market plummeted and Bitcoin entered a state of crisis.
After Bitcoin plummeted, it spent 2015 and 2016 in a process of stabilization, which eventually happened in 2017. Not only did the cryptocurrency stabilized but the value of 1 Bitcoin was constantly going up in 2017.
At the end of it, Bitcoin recorded its lowest volatility period and shortly after that, peaked and reached a value of over $19,000 on December 27. But, the market was overflown and that led to a wild 2-day plunge, which was something that was expected.
After the plunge, Bitcoin entered another state of crisis and spent the whole of 2018 and most of 2019 trying to get back to its normal state. 2020 was the year when that finally happened. Several factors that indicated that Bitcoin might surge again appeared in 2020. Its hash rate was stabilized, the cryptocurrency had its second-lowest volatility rate, a halving event was scheduled to take place, and the infrastructure was growing.
All of the indicators were true and in mid-December, Bitcoin peaked again, and not only did it break the 2017 record in value, but it breezed past it. It topped $20,000 with ease and it is now valued at over $30,000. Some experts believe that the price might climb as high as $50,000 in 2021.