I wrote this a week ago in Pune, but totally forgot to share due to my travel to North East. Better late than never, so sharing it now from somewhere near New Jalpayguri, Siliguri.
It’s 5th May 2017.
It’s party time for Bitcoin community here in India. Today i.e. 5th May 2017, Bitcoin has reached the magical price of ₹1 Lakh. It’s an iconic price point for any asset class as far as Indian mentality is considered.
Even in mobile phones Market, ₹99000 device is considered differently than a ₹101000 device. People hardly notice that the difference is just ₹2000.
It seems to be just yesterday that Bitcoin was worth ₹45000/- in the month of October 2016. In just around 6 months the value of Bitcoin has more than doubled.
Why is it so that the price always grows? Does the price ever go down?
Answer is yes. Yes, sometimes the price of Bitcoin goes down as well. But the value by which the price grows is almost always higher than the amount it looses.
Anyone who intends to invest in the Cryptocurrencies Market needs to understand the following key points:
1) Bitcoin is at pretty young stage as of now. This market is hardly 8.5 years old. Other Cryptocurrencies are even younger than Bitcoin.
2) Market Capitalisation of Bitcoin is around $25 Billion, which is negligible if compared with Stock Markets, Gold Markets, Forex Markets.
3) Bitcoin Market is not susceptible to manipulation, price purely depends on Demand & Supply.
4) Each exchange has its own Price depending on Demand & Supply in that Parth Exchange.
5) Prices that we see through multiple Price Tracking Apps like CoinDesk or through Google Search, actually show average price of all prominent exchanges.
6) It’s a very volatile market as of now & will remain so until the Market Capitalisation crosses around $1 Trillion.
7) Bitcoin has carved a path never seen before by any financial asset, commodity or currency in the past. It has grown from $0 to $1551 in less than eight and a half years.
9) A lot of people ask for “Regulation” in Bitcoin, and to be precise it is technically not possible. Governments or any other regulatory bodies not participating in Bitcoin Blockchain can only regulate entities or organisations working in Bitcoin Domain, not the Bitcoin itself.
10) The only way Bitcoin is being regulated & can be regulated is through the Bitcoin Protocol and Consensus Algorithm inside Bitcoin Blockchain.
11) These points about Bitcoin have played key role in creating the Deflationary Currency Image for Bitcoin and I anticipate that Bitcoin will continue to rule the Cryptocurrencies World for the near future.
I hope this short article was helpful to you all in understanding a couple of aspects about Bitcoin.
For any further details or clarification or any doubts about Bitcoin, feel free to contact me directly.