How Has Bitcoin Transformed Throughout the Years
It is one of the most impressive financial growths experienced by any currency, and a virtual one at that. The statistics are simple, showing that if you had invested $1000 dollars in Bitcoin in 2009 when it first made an appearance, you would have over $40 million dollars today. There are, however, two main aspects of such transformation, and that is the changes in its value and the changes in its uses. Both are described below and will provide some detail as to how Bitcoin has transformed over time and continues to change the world that we live in.
Changes in value
The biggest transformation of Bitcoin over the years has been the increase in its value. As mentioned in the introduction, Bitcoin values have been on an ever-increasing trajectory; serving to make a large number of millionaires who had the foresight to invest early.
The Bitcoin value saw the first sharp or considerable rise in 2010 when the value rose from a fraction of a penny to $0.09. This was the first time the currency jumped so significantly and has since seen a number of these significant increases. Reaching $315.21 at the start of 2015, eventually to then reach the peaks of $60 000.00 in 2020 when the Coinbase exchange went global. It is these prices and its volatility over the long term that have made it such an interesting investment for so many.
Changes in uses
Bitcoin can now be used to buy more products and services than ever before. After its invention in 2008, after the world’s biggest financial crisis; the initial idea had been to use it for as many transactions as possible. The aim was to avoid the confusion that pervaded traditional economics at this time; from using Bitcoin for online casino deposits to being able to buy yourself a fancy car at an online auction. One of the biggest current uses of Bitcoin has been to store, value; and hedge against inflation, and it is Bitcoin, above all other cryptocurrencies, that has been able to do this best. It is also the fastest means of peer-to-peer payments without any bank charges or delays. The uses of this cryptocurrency have thus gone a long way and as it becomes more mainstream; so too will these uses further diversify and change.
From the very early days when Satoshi Nakamoto designed and invented Bitcoin to circumvent traditional banking in the immediate aftermath of the 2008 banking collapse, it has been a volatile currency. And although its main reason was to provide simpler banking and transactions; Bitcoin has changed both how it was; and has been used to become the most pre-eminent currency or monetary value of our time. There may be no physical coins or notes, but the peer-to-peer transactions provide a sense of value; and control over a currency that we have never had before. There will only ever be 21 million Bitcoins ever made, and as such; it is a finite resource that will simply increase in price the closer we get to this limit.
