BITCOIN and its IMPORTANCE in today's world - Part THREE

PART TWO HERE: https://steemit.com/cryptocurrency/@eirik/bitcoin-and-its-importance-in-today-s-world-part-two

Let's go to the history for a little bit.

In 2009 no one believed such thing as Bitcoin or cryptocurrency. Also the value of Bitcoin was just a few cents. Faucets were giving Bitcoins in huge amounts in that time. Not that many wallets survived through this era, but people who were holding and trusted Bitcoin from that time are pretty much somewhere in Panama drinking mohito now. After Mt. Gox was opened in July 2010, people could finally buy Bitcoin in a normal way. In February 2011 Bitcoin's value was one dollar. Since then a lot more exchanges and cryptocoins were made.

The reason for big fluctuations in Bitcoin's price has always been distrust in the government and in the monetary system we have now. But also a constantly harder and more difficult mining. Bitcoin jumped over $100 when Greece needed financial fix for its banks as they did not have people's money. Therefore, confidence in the banking system failed and people tried to look elsewhere. At that time, Bitcoin was mostly used on the black market. Do you remember silkroad? That was huge.

In some countries, Bitcoin was more popular than in others. The Chinese people did not like the inflationary Renminbi and Japanese always loved Bitcoin as "creator" of Bitcoin is Japanese.

In November 2013, the Bitcoin price was nearing $1240. When governments saw it, they tried to regulate Bitcoin. In the USA, for example, Bitcoin is a commodity and has to be taxed if you sell them. I can't really tell if people do it, as I am not from the USA. Also fraudsters and hackers always loved Bitcoin, and they love it more as price is going up, because it is very hard to know who stole Bitcoins, because you can only know the wallet's number.

At the beginning of 2014, the Bitcoin price was back to 200 dollars. The Bitcoin price depend largery on trust in the new "money" and the new payment system. Since the election of President Donald Trump, Bitcoin has been going higher and higher and today we can see Bitcoin back to its old values - 1200 dollars.

The price is very volatile. Bitcoin is getting harder to mine and quantity is limited. Japan may be take Bitcoin as the "real" currency this year which means you could pay with it normally in stores. Russia will probably follow Japan in 2018. For these reasons, the price should be rising in the long run.

Bitcoin can therefore becoome a "legal" currency, but the digital currency era is still very young. However we will undoubtedly hear about cryptocurrency more and more. And the more problems the current monetary system will have, the more Bitcoin and other cryptocurrency will rise.

Is part FOUR coming? We will see!
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