The currency has since recorded one of its best annual performances since inception in value terms, settling at $13,860 at the end of 2017. Luckily, there are hundreds upon hundreds of Altcoins - other cryptocurrencies in the vain of Bitcoin - that are trading for as little as pennies.
2017 was, with no doubt, the biggest year for cryptocurrencies.
From the very beginning Bitcoin ecosystem, backed with blockchain technology, has listed its aspiring potential to streamline global transactions without overheads among TOP 5 advances it brings to the surface. This has all the calling cards of a speculative bubble being formed, which will eventually burst, costing investors massive sums of money.
If bitcoin seems confusing or mysterious, it's because it kind of is.
Another cryptocurrency that can be more easily used to purchase goods and services is ether which was created to fund the Ethereum network, being sold as a blockchain which some describe as the next stage of the Internet, or Web 3.0. Last month, gaming platform Steam also stopped accepting payments in bitcoin, citing "high fees" and "volatility". Bitcoin transactions are too slow and too expensive and its value is too unstable for it to be a reliable transaction coin.
The report also warned that if digital coins become a widely used form of currency, investors shouldn't expect the astronomical returns that have recently drawn unprecedented attention to the world of cryptocurrencies.
Cryptocurrency trends are all but similar to this land comparison. Valuations for the overall market dropped to $698.1 billion from $828.5 billion.
In my article last December 2, 2017 about bitcoin, the most popular cryptocurrency in the market - I mentioned that the legal status of bitcoin (and the other cryptocurrencies as well) is different from one country to another - meaning it is still undefined.
Still, it's important to keep in mind that this currency could soon bounce back. Launched 9 years ago, its potential was seen last year when it increased by 1281%. A drop of 50% is significant, but considering the fact that the majority of currencies are performing poorly, it may not be something to be too anxious about.
According to research from the London Block Exchange, it looks like millennials will be taking to Bitcoin in a big way over the next year. Yesterday, the currency reached an all-time high at above $1400, smashing through the $1000 barrier for the first time in its history.
"According to the European Central Bank, traditional financial sector regulation is not applicable to bitcoin because it does not involve traditional financial actors". Continuing into Wednesday morning, the change in sentiment had cryptocurrency's market cap slouching to US$672 billion, down almost US$80 billion from its US$752 billion valuation the night before. The leader in the market, bitcoin, went from a currency where 10,000 of them bought two pizzas to where 10,000 pizzas might buy two bitcoin, depending on the size of the pizzas. On the other hand, John Rogers, the CEO at Ariel Investments, said the price of cryptocurrencies and bitcoin could decline sharply lower in the next five years. For retail transactions that range anywhere from tens to a few hundreds of dollars, the fees can be up to fifty percent of the transacted amount.