Put simply, Bitcoin (BTC) is a distributed, peer-to-peer (P2P) digital currency which can be transferred in an instant between any two people throughout the world who accept Bitcoin.
It’s like digital cash in that you can actually send it to any other Bitcoin user across the world.
However, there are a lot of differences that set Bitcoin apart from traditional currencies such as the USD, for example.
For once, Bitcoin is decentralized. This means that there is no central authority which controls the amount of BTC that’s in circulation. In other words – there are no banks or political institutions that govern it.
The total supply of Bitcoin which will ever be created is capped. No more than 21 million BTC will ever be mined, with 0 already in existence.
You can read more about Bitcoin and its specifics in the detailed guide we’ve created.
BITCOIN PRICE ANALYSIS
Bitcoin (BTC) price 00 has seen a tumultuous 2018, going through a prolonged bear market which saw it lose a major chunk of its value.
At the beginning of 2018, Bitcoin saw its price reach an all-time high point of about $20,000. Ever since, however, the cryptocurrency has been on a steady decline.
BTC lost about 80 percent of its value since then, as the entire cryptocurrency market shrunk, losing more than $700 billion over the same period.
The beginning of 2019 seems to be continuing the pattern, as the cryptocurrency lost another 7 percent of its value.
As the CEO of the world’s largest cryptocurrency exchange – Binance, pointed it out last year, however, Bitcoin’s price declining is business as usual.
Commenting on the matter, Changpeng Zhao said:
Many people seem to think BTC price was flat before this year, as they appear to be on the graph. To the old-timers, it’s the same pattern every year. Just the units on the left is different.
And while that’s not the first time that Bitcoin has entered a prolonged bear market if history is any indicator, each time it has managed to come back swinging, reaching a higher high.