The Rise of Bitcoin and Reasons You Should Invest in Cryptocurrencies - Saga Gist - Top Source for Nigeria News

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The Rise of Bitcoin and Reasons You Should Invest in Cryptocurrencies



The world's largest digital currency Bitcoin, rose above the US$8,000 mark on Tuesday, which is the highest time the cryptocurrency has been valued in more than nine months.

Source: newsbtc.com Within the past few hours, the price of Bitcoin has surged from around $7,000 to $8,200 and that is twice as much as it traded six weeks ago.

CoinDesk, a news site specializing in bitcoin and digital currencies reported that Bitcoin’s value has increased more than 120 per cent, since the start of 2019.

     The rise of the digital currency is a contentious one. 

In late 2017, the Bitcoin frenzy led its value to reach an all-time high of over $20,000 but its value came crashing back down in the new year and continued a steady spiral since and has not fully recovered, according to GlobalNews.

Also in December 2017, Bitcoin prices plunged about 15 percent in Asian trade before recouping some of the losses as investors apparently took fright at news that a South Korean exchange had been hacked.

Why is Bitcoin Rising or flunctuating?

According to Darren Lee, the rise and fall in value of bitcoin maybe due to so many factors. Among the many factors determining the fluctuation of cryptocurrency prices include but not limited to:

    The Perceived Value (between Bitcoin and Fiat currencies), 

    Bad Press & Rate Of Adoption,  

    High Profile Losses, 

    Investors Reaction To Security Breaches and

     Large Holders Of Bitcoin

The Perceived Value


One of the reasons Bitcoin and other cryptocurrencies see a massive change in their prices compared to fiat currencies is the store of value they are perceived to have against the fiat currencies. When it comes to Bitcoin, there are certain qualities which make that cryptocurrency comparable to gold.

There is a limited amount of Bitcoin that will ever exist in the world and it is increasingly becoming more difficult to mine the cryptocurrency.

Fiat currencies are different from Bitcoin and gold. They are maintained by governments seeking to keep employment levels high and inflation levels low. They want to maintain satisfactory levels of growth through investments being made in capital resources. This means that the economies that are built with fiat currencies can either show strength or weakness.

Compared to the value of the fiat currencies, people may feel inclined to invest more or less in Bitcoin since it affects how much value they feel that Bitcoin has.

Bad Press & Rate Of Adoption


With the increasing popularity of Bitcoin around the world, it was bound to start turning heads and raising eyebrows. One of the reasons why Bitcoin and other cryptocurrencies have become so popular is the fact that they are not regulated by governments. There is actually no central authority that decides on the proceedings of the cryptocurrency landscape.

Due to some bad events taking place, Bitcoin has made quite a few headlines. Some mal-practitioners have maligned the reputation that cryptocurrencies have and given more reason for governments to push for regulation.

Coupled with the press leaving no opportunities to instill fear in their viewers to get more and more viewers, the public opinion has caused a lot of shift in the value of Bitcoins several times over the years. This public perception has played a big role in affecting the price fluctuation but it is also being seen as a sign of maturity for the cryptocurrency market.

Bitcoin friendly investors who see it for what it is have been adamant when it comes to making their investment decisions.The value of Bitcoin and other cryptocurrencies has always seen itself rise back up after the slump that followed immediately after big events like the Mt. Gox debacle.

High Profile Losses 


One of the most important things to note is that when it comes to the losses that people face and the subsequent news about them amplifies the affect of the volatility in prices for Bitcoin. The scarcity of the total number of Bitcoins increases the value of Bitcoins even after some negative news about it hits the mainstream news but the lift is still hampered by any more negative news about the cryptocurrency.

 It is a vicious cycle that affects the perception people have about Bitcoin’s long term value.


While there have been early adopters of cryptocurrencies that have shown poor management skills and caused a lot of strain to the reputation of Bitcoin, there are new entrants that are learning from the mistakes of those before them to make their operations better. The overall strength of Bitcoin and other cryptocurrencies is increasing but it still fluctuates because of any negative news about it coming into the mainstream news.

Investors Reaction To Security Breaches


Another reason Bitcoin’s price fluctuates massively is when someone points out a potential breach in the security of Bitcoins. Whenever someone points out a vulnerability in the system and how it operates, there is a collective effort being made to fix the issues and security breaches.

 At the same time, the security concerns also cause a lot of the public to become rattled.

Investors that have a lot of stake in the cryptocurrencies start dumping their assets. The flooding of Bitcoin back into the market being exchanged for fiat currency options can drive the price downwards in a matter of hours. This presents an opportunity for a lot of other people to get in on the market by lowering the prices enough for them to invest in them, bringing the prices back up by the time a security concern is addressed.

Large Holders Of Bitcoin


There are a lot of early adopters that managed to get a hold of large amounts of Bitcoins early on. The value of their holdings is well in the millions right now and they do not have a lot of options when it comes to what they can do with their cryptocurrency assets.

There is only a limited number of Bitcoins in the world. The scarcity of the resource makes for a tricky situation for big holders. Liquidating their assets into fiat currency positions can risk moving the market by a significant margin. The little option value for the large holders also exists because the volume of Bitcoin still only resembles nothing more than a small cap stock.

There is not enough massive adoption right now to present the large holders with a lot of option value for them.

Brief Price and Value History of Bitcoin

1 September 2017         $5,013.91     
12 September 2017       $2,900     
13 October 2017           $5,600     
21 October 2017           $6,180      
17-20 November 2017  $7,600 - $8,100      
15 December 2017        $17,900      
17 December 2017        $19,783.06      
22 December 2017        $13,800      
5 February 2018            $6,200      
31 October 2018           $6,300      
23 February 2019         $3,930      
15 May 2019                $8200

Is 2019 The Time To Buy and Invest in Bitcoin?

 There is no other time to buy or invest in bitcoin than now and that is because Bitcoin is a long-term investment and financial tool with huge potential. The digital currency technology is advancing and many businesses and companies are embracing it for trade and transactions in the world. It is time to take advantage and upscale your reach.

So How Can You Buy Bitcoin? 

You can buy Bitcoins from digital currency exchange or broker such as CoinbaseCoinbase is one of the biggest U.S. cryptocurrency exchange platfrom.

Alternatively, you can buy directly from other people using online marketplaces, as it is same as other products or services you purchase via third party.

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