Bitcoin has been the main topic of discussion in the global financial industry for the past few months. The reason for that is because it managed to sky-rocket in value and reach the same pedestal as gold. That is a milestone that no other product or person or anything similar has managed to achieve, which is why it deserves a lot of praise.
But, this is not the first time Bitcoin has managed to surge in value. If you remember well, the same happened back in 2017, when Bitcoin reached a then-record-breaking value of over $19,000. We wanted to take a look back at all of the surges that Bitcoin experienced throughout the years, but first, let’s explain how people can make money with this cryptocurrency.
How Do People Make Money With Bitcoin?
To make money with Bitcoin, you must first earn it. While many try to buy it and re-sell it at a higher price, there is one other way to earn it. It is extremely hard, but free, which is why experienced traders always go for that option.
This option is called mining. Mining is a process of solving very complex puzzles. The reward for each puzzle that you solve is Bitcoins. By solving these puzzles, you verify and record Bitcoin transactions. Every recorded transaction is known as a block, while the entire log which stores all blocks is known as a blockchain.
After you earn your Bitcoins, you head over to trading sites, which are considered marketplaces for traders who want to buy and sell Bitcoins. But, there is one additional service that trading sites offer to the sellers.
Reputable platforms of this type, such as the Bitpal app, use advanced AI systems which can collect all the data about Bitcoin from the market, analyze it and provide traders with information about Bitcoin’s fluctuations. This type of information lets them know what the future price of Bitcoin will be in the future, thus allowing them to make the highest profit.
Now, let’s take a look at all of the Bitcoin surges.
Surge No.1 – 2014
The first surge happened in 2014 when Bitcoin became popular on the black market. During this time, it was mainly used on the dark web such as Silk Road. Many traders saw its potential, which is why they decided to trade with it. During this time, Bitcoin hit a record value of over $700, but after several raids by US authorities, many Bitcoins were forfeited and its price plunged.
Surge No.2 – 2017
After the price plunged, Bitcoin spent 2 years trying to come back to its normal state. It finally managed to reach that goal at the start of 2017. Bitcoin spent most of 2017 rising in value at a slow pace, but in late December, the price started drastically rising and on the 27th, it peaked at a little over $19,000. But, two days after reaching that record, Bitcoin plunged.
Surge No.3 – 2020
The most recent surge in value happened in December of 2020. Bitcoin managed to top the 2017 record and cross $20,000 in value. Not only that, but its value went way beyond that. As of late February 2021, Bitcoin is valued at over $50,000, which is an astonishing number.
What do They Have In Common?
The one thing that all three events have in common is that they peaked in value shortly after a halving event took place. The first halving event was at the end of 2013, the second was at the end of 2016, and the third one was in May 2020. During these events, the circulation of Bitcoins is cut in half and it becomes hard to mine them. The demand is high, which is why their price sky-rockets.