Digital Currency

 

 

CONTENTS:

WHAT IS DIGITAL CURRENCY:

BOUGHT DIGITAL CURRENCY IN 2017: 2

BITCOIN BOTTOMING OUT: 3

PRICE OUTLOOK: 3

CONCLUSION:

 

Figure 1

THE RISE AND FALL OF DIGITAL CURRENCIES

What is Digital Currency?

If you were to look up the term ‘cryptocurrency’ you would get something like or similar to the following definition: A digital or virtual currency, that uses cryptographic encryption techniques to generate units of the currency and verify transactions. It is important to add however, that many use the term ‘digital currency’ interchangeably with ‘cryptocurrency’. Why it is important to make a distinction will be covered later, but first let’s substantiate the claim that the terms are used interchangeably.

If you were to type ‘digital currency’ into Google’s news search you would most likely receive articles about cryptocurrency and in particular Bitcoin. As can be seen below. I’ve taken the first 20 articles from google news (week of 20th feb), and taken their text using it in a word matrix. As can be seen from the matrix below ‘Bitcoin’ is the most popular topic associated with the term ‘digital’.

BOUGHT DIGITAL CURRENCY IN 2017:

The market is growing fast and new investors don’t want to lose this opportunity, including some big financial firms, which joined the ecosystem too. Cryptocurrencies were present in more and more forums. Block chain and digital currencies ignited the interest of big players across a variety of industries

BITCOIN BOOMING OUT:

The largest cryptocurrency by market value is currently priced around $7,050, representing a 127 percent rise from the low of $3,122 registered in Dec. 15, 2018, according to CoinDesk’s Bitcoin Price Index.

Back then, while the selling ran out of steam near $3,100 in mid-December, buyers remained on the fence for at least 3.5 months, leaving bitcoin in the range of $3,300–$4,200. The narrative that bitcoin was repeating history by bottoming out almost 1.5 years ahead of the next mining reward halving started doing the rounds during that consolidation period. Bitcoin is set to undergo the scheduled halving in May 2020, following which the reward per block mined on the block chain will drop from the current 12.5 BTC to 6.25 BTC. 

PRICE OUTLOOK :

Figure 5

Conclusion : 

Launched in 2009, the price of one bitcoin remained a few dollars for its first few years .The price reached a peak of nearly $20,000 per bitcoin in late-2017 and has since fluctuated quite a bit, averaging at about $7,000 in April 2020

Figure 6