Cryptocurrency has been a favorite topic among investors over the past few years. Ever since Bitcoin’s historic highs in December 2017, financiers across the world have debated whether cryptocurrency is a good investment.
And yet, many people still wonder, “What is Bitcoin?” In short, Bitcoin is a decentralized digital currency. It’s immune to inflation, making it a popular addition for investing portfolios.
Many people worry that Bitcoin costs too much for them to invest in. But, what is the price of Bitcoin? Is it possible for the average investor to afford it?
If you’re wondering about this, keep reading! We’ll explore this question in-depth in the guide below.
What is the Price of Bitcoin?
At the time of writing, one Bitcoin is worth $45,757.80. The cryptocurrency is still performing well, although it has decreased from its historic highs in 2021. That year, Bitcoin reached values exceeding $65,000 in February, April, and November.
Several factors contributed to those historic highs. One crucial event was Tesla’s announcement that it had procured $1.5 billion worth of the cryptocurrency. This leading company’s investment sparked interest across several industries and investing firms in Bitcoin.
Experts expect that the decrease in Bitcoin price resulted from other events. One such event was the new speculation that the government would regulate Bitcoin in new ways.
Another more tangible factor in the price decline was a blackout in Xinjiang, China. This blackout led to a significant decline in the Bitcoin mining process, causing many to panic and liquidate their Bitcoin assets.
These events point to a critical fact about the Bitcoin market; it’s incredibly volatile. So, watch its price with care before you decide to invest.
What Gives Bitcoin Its Value?
Bitcoin functions differently than fiat currencies like the US dollar. Fiat currencies receive backing from their respective governments. This governmental backing, along with monetary scarcity, makes money more valuable.
Bitcoin functions differently. Due to its decentralization, Bitcoin’s value doesn’t come from one entity. Instead, its value stems from its scarcity.
Only a finite amount of Bitcoin can exist at one time, making it immune to inflation. So, its scarcity and the competition over it make it more valuable.
In this way, Bitcoin functions similarly to precious metals. Like these assets, Bitcoin is an excellent resource for hedging against inflation.
Where to Purchase Bitcoin?
You can buy Bitcoin on almost any crypto exchange, such as netcoins.ca. Also, don’t worry if you can’t afford the complete Bitcoin price. Many investors purchase pieces of Bitcoin equivalent to the dollar amount they invest.
Once you purchase Bitcoin, you can store your assets in your digital wallet. These wallets protect your assets and keep others from hacking them.
Decide if Bitcoin is Right For You!
The answer to “what is the price of Bitcoin?” could change at any time. So, determine if you’d like to diversify your portfolio by investing in Bitcoin. Then, buy this crypto asset at its lowest cost as soon as possible!
We hope you enjoyed this article! If so, check out our other cryptocurrency content today. We have several pieces that help investors navigate the crypto world with ease.