BITCOIN is the hot topic in the world of amateur and professional currency investment.
Its meteoric rise in value over the last year has made hundreds of early investors extremely wealthy and now everyone wants a slice of the action – but what is it worth today?
What is Bitcoin worth today?
As of 9am on January 12 2018 Bitcoin is worth £9812.90 ($13450.67).
Over the weekend, the cryptocurrency has continued to fall in value since Friday’s price of £9890.82 ($13456.71).
And it represents a dramatic slide since Tuesday, when it was valued £11,632.00 ($15679.70).
The fall was sparked by South Korea’s plan to ban cryptocurrency trading sending the market into a tailspin.
Justice minister Park Sang-ki said the government was preparing a bill to ban trading of the virtual currency on domestic exchanges.
He said: “There are great concerns regarding virtual currencies and justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges.”
It comes just months after its price exceeded the value of an ounce of gold for the first time – then about £940.
But investors are worried by the currency’s volatile nature and the market’s inability to cope with sudden shifts in demand.
An eBay executive told Yahoo Finance the tech giant is “seriously considering” accepting bitcoin payments after its recent success.
Although Scott Cutlor, senior vice president of eBay Americas said they’re “not quite there yet”, his consideration indicates how fast the cryptocurrency is permeating the mainstream.
John Taylor Jr, president and founder of research firm Taylor Global Vision in New York, on the other hand, believes Bitcoin will soon crash, even though it hasn’t reached its peak yet.
The cryptocurrency’s recent record of nearly $20,000 has been attributed to surging demand in China, where authorities warn it is used to channel money out of the country.
What is Bitcoin?
Bitcoin is a virtual currency that was created in 2009 by an unknown computer whizz using the alias Satoshi Nakamoto.
Individual Bitcoins are created by computer code.
The total value of all Bitcoin in existence is now more than £112billion.
Transactions are made without middlemen, so there are no transaction fees and no need to give your real name.
More businesses are beginning to accept them and in some parts of the world you can even buy pizza with Bitcoins.
You can set up a virtual wallet websites like Blockchain to store, keep track and spend your digital money.
You are also able to purchase Bitcoin through an online exchange or Bitcoin ATM.
To find merchants that accepts Bitcoin in the UK click here.
Bitcoins aren’t printed, like pounds, dollars or euros – they’re produced by people, and increasingly businesses, running computers all around the world.
It’s the first example of a growing category of money known as cryptocurrency.
How do Bitcoins work?
The value of Bitcoin, like all currencies, is determined by how much people are willing to exchange it for.
To process Bitcoin transactions, a procedure called ‘mining’ must take place, which involves a computer solving a difficult mathematical problem with a 64-digit solution.
For each problem solved, one block of Bitcoin is processed.
In addition, the miner is rewarded with new Bitcoin.
To compensate for the growing power of computer chips, the difficulty of the puzzles is adjusted to ensure a steady stream of new Bitcoins are produced each day.
There are currently about 16 million in existence.
The Bitcoin protocol – the rules that make Bitcoin work – say that only 21 million Bitcoins can ever be created by miners.
But these coins can be divided into smaller parts with the smallest divisible amount one hundred millionth of a Bitcoin.
This is called a “Satoshi”, after the founder.
To receive a Bitcoin, a user must have a Bitcoin address – a string of 27-34 letters and numbers – which acts as a kind of virtual post box.
Since there is no register of these addresses, people can use them to protect their anonymity when making a transaction.
These addresses are in turn stored in Bitcoin wallets, which are used to manage savings.
Bitcoin-Related Stocks Soar In Stock Market; Is Bitcoin Responsible?
The United States stock market on Monday saw a different dimension related to price movements of stocks. Analysis and price charts on the 24th June 2019 showed that virtual currencies Bitcoin-related stocks soared immeasurably higher than their fiat counterparts. This is coming after Bitcoin was seen to have temporarily broken the $12,500 resistance level and settled above it. This remarkable price surge seen in Bitcoin was the first recorded in about 15 months, and this made it a fast buying material.
Blockchain Relatives Stocks
Grayscale Bitcoin Investment (GBTC) is a virtual currency which is linked to the price of Bitcoin. The stock must have caught the bullish fever and followed every of Bitcoin’s upward waves. The stock was seen to rise temporarily by 13%. Grayscale Bitcoin Investment appeared to have few other supporters with similar blockchain relationships. Riot Blockchain, DPW Holdings, as well as Marathon Patent Group also made rapid uptrends as they all shined in bright green. All these stocks doubled their prices before the closing hour.
On the other hand, Peter Schiff an American stockbroker and financial commentator says
Both gold and Bitcoin prices have risen recently, causing many to erroneously conclude that the two are rising for the same reason. But stock and bond prices are also rising. Bitcoin and stocks are rising as speculative assets, while gold and bonds are rising as safe havens.
Bitcoin’s aggressive turnaround
Bitcoin has particularly moved up in a very aggressive bullish rally which saw it recording a new all-time high within the past 15 months. At the moment, no one can exactly predict Bitcoin’s next line of movement but many are very hopeful and the optimism is very much present. Bitcoin is expected to make more radical price surge, eventually surpassing its 2018 all-time high of $20,000.
Alts Waiting To Join The Rally
However, as bitcoin excelled in all ramifications, taking into consideration its market price and capitalization, this is not to be said of alt coins which seem to have been left behind in this series of radical movements. Popular alts like Litecoin is still trying to nurture the common touch.
At the time of writing this article, Bitcoin had doubled its price in about 5 weeks period and had also doubled its market cap in just a few days. This new development also steered arguments and criticism from Bitcoin’s antagonists who seem to be more interested in Gold.
Bitcoin Versus Gold
Gold, just like Bitcoin also rose up the charts and saw significant improvements. However, this was immeasurably smaller in capacity and totally incomparable to Bitcoin’s prowess over the past few weeks.
Present-day Bitcoin market has matured, improved on the protocol side, claims Blockstack PBC CEO
The cryptocurrency industry today has everyone’s attention, with the present bull run pumping Bitcoin’s price and driving the market capitalization through the roof. A series of investors and analysts have predicted that the bullish momentum experienced by the market is currently more mature than the one in 2017. This was backed by a recent SFOX report as well.
In a recent segment on Bloomberg, Muneeb Ali, CEO and Founder of Blockstack PBC, highlighted that the crypto-market was basically very repetitive, as it basically does the same thing time and time again, but on a different scale.
“The market goes up to its all-time-high, crashes down, takes a longer time to bounce back and if you have been in crypto long enough, you are pretty much expecting it.”
Ali suggested that Bitcoin had made significant progress on the development and protocol side as presently, a lot of highly skilled developers and engineers are involved in the technological aspect. The remark can be backed by the fact that Bitcoin recently released its Erlay protocol which was supposed to reduce bandwidth usage in the network and improve system efficiency.
The involvement of institutional investors has made Ali skeptical about the market since the technology is fairly new and “no one really knows” what is going on or where it is going in the future. He believes that the present bull run has less to do with institutional investors and more with the fact that the overall market was maturing.
Further, it was recently suggested that Bitcoin played a role in driving up the prices of Asian crypto-related stocks in Tokyo and Seoul, with certain companies witnessing hikes of more than 10 percent over the past week. The surging Bitcoin price and its corresponding market cap affords a lot of opportunity for these stocks to rise even higher.
Bitcoin [BTC] Forges Another Assault On $15,000 Reviving Investor Interest
- Double-digit gains on Wednesday revive investor interest in Bitcoin and other cryptocurrencies.
- Bitcoin surge is supported by key technical indicators including the RSI and the MACD.
It is evident that Bitcoin is not going to rest until it achieves the milestone by breaking above $15,000 in the coming few weeks. Following the break above $12,000, BTC/USD pushed for further correction higher inching closer to $13,000. A new 2019 high was from at $12,946, however, this will not hold as the high for long owing to the increasing bullish pressure at press time.
BTC/USD 4-h chart
BTC/USD trading pair is correction higher 10% on Wednesday with a relative change of +1115. In fact, a break above $12,900 is the kick that Bitcoin is waiting for the much-anticipated movement above $13,000.
As discussed by Coingape earlier today, the technical levels remain positively intact. The Relative Strength Index (RSI) continues to form a higher low pattern. The up trending indicator signal points towards a stronger bullish momentum. At 88.22, the RSI is back to the levels seen on May 12 following the break past $7,000 and later $8,000.
As long as the RSI stays in the overbought and respects the trendline observed on the chart, correct past $13,000 will be a walk in the park. The strong bullish momentum is also supported by the trends seen with the Moving Average Convergence Divergence (MACD). The indicators divergence increase is an indication of building bullish momentum and the tight grip from the buyers.
Bitcoin Key Technical Indicators
Key Resistance: $13,500
Key Support: $11,000 – $10,500
MACD 4-h: Increasing divergence suggest stronger bull grip.
RSI 4-h: The upward trend continues to cement the bull’s presence on the market.