Bitcoin was created in 2009 as a digital asset and a payment system. It is the first decentralized cryptocurrency, as the system works without a central bank or single administrator. The network is peer-to-peer and transactions take place between users directly, without an intermediary.
These transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.
Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services.
As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.
The price of Bitcoin has been volatile since its inception in 2009. Prices fluctuated from $0.30 to over $32 before settling in around $4 in early 2014.
In January 2015, BTC China (one of the world’s largest Bitcoin exchanges) stopped accepting deposits in Chinese Yuan. This caused the price of Bitcoin to drop to around $600.
In September 2017, the price of Bitcoin reached an all-time high of $5,000 and has since dropped to around $8,000. On November 28th, 2017, Bitcoin dropped below $8,000 for the first time in over two weeks and then below $7,000 the following day.
The price has continued to drop since then and is currently sitting at around $11,000.
There are several possible explanations for why the price of Bitcoin is crashing now. One possibility is that investors are cashing out their Bitcoin holdings due to concerns about the future of the cryptocurrency market.
Another possibility is that large-scale investors are selling off their Bitcoin holdings to buy into other asset classes such as stocks or real estate. Finally, it’s possible that the recent run-up in the price of Bitcoin was due to speculative activity and that prices are now correcting back to more realistic levels.
Whatever the reason for the current crash may be, it’s important to remember that volatility is inherent in the cryptocurrency market and that prices can go up or down at any time. If you’re thinking about investing in Bitcoin or any other cryptocurrency, it’s important to do your research and be prepared for market fluctuations.