Bitcoin is a digital currency just like US dollars, Japanese Yen, British Pounds, and the Philippine Peso. It can be bought, sold, and exchanged for goods and services. When you go shopping, you either pay using paper money, or you can pay using your bank card. When you use your bank debit or credit card, the money is taken from your bank account balance. Bitcoin works similarly, like how you pay using your bank card, only that there are no banks involved with Bitcoin. Since it is a digital currency, all transactions are also processed digitally. Today, there are already Bitcoin ATMs that turn Bitcoins into local currency.
Many are wondering why Bitcoin is rising and when it’s going to crash. The price of Bitcoin changes every day just like most currencies, and its value is based on how valuable the market is. For example, if there is bad news circulating about Bitcoin, you will see more people selling Bitcoins than buying Bitcoins. These people sell Bitcoin for lower prices so they can quickly sell it, causing the Bitcoin price to drop. When it’s all good news about the cryptocurrency, more people will buy Bitcoin. People will most likely purchase Bitcoins for higher rates than the current value so they can buy it quickly. This causes the Bitcoin price to rise.
Bitcoin really made noise in the past years since its invention in 2009 by Satoshi Nakamoto, making the media notice it. The media attention and the Bitcoin craze caused Bitcoin’s price to increase more than it ever had before. Even financial analysts made their Bitcoin predictions making more and more people interested. Because of this, people were buying Bitcoin, so the price went way up and high. Soon after Bitcoin reached its highest rate ever, it crashed. It led to millions of people selling their Bitcoin.
The price of Bitcoin actually crashed several times over the years. There was a time when the investors became worried about new laws and regulations making the price crash again. It has been predicted that if many more countries create laws and regulations for the cryptocurrency, more bad news will surface, and this could mean it will crash again. But loyal Bitcoin investors say that even if there will be new laws to impose, it will not be very soon. And it might not affect the price of Bitcoin. Ultimately, predictions say that it will continue to rise.
Will Bitcoin crash again in 2018? No one really knows. Some people firmly believe that blockchain technology and cryptocurrency are the future. One can only hope for the best.