In early December 2016, the international blockchain based cyptocurrency Bitcoin was being traded at about $750 per each individual unit. This price represented a positive gain in value of about $200 per individual coin since September 2016.
Is the Bitcoin the future of financial technology?
The blockchain technology at the heart of the Bitcoin and other leading cryptocurrencies has been heralded as revolutionary for a number of unique reasons:
- When utilizing a blockchain, a currency does not need to be overseen or managed in any way by any central authority, financial institution or government.
- Based on how the blockchain is designed, it's database is distributed across many computers and networks.
- Each block contains a specific timestamp and corresponding link to the previous segment or link of the chain.
- Anyone on a particular blockchain network, can view any block in the chain independently.
- Blockchain technology has been celebrated as being a truly democratic payment system and financial instrument.
On January 1st 2017 however, the price of the digital currency known as Bitcoin surged to over $1000 per individual coin according to the Bitstamp Price Index (BPI).
In 2013, the global price of Bitcoin had reached $1000 when news broke that Mt.Gox, a Tokyo based digital currency exchange platform had been hacked. This incident would cause the global price of Bitcoins to tumble down to just $400 per individual coin.
Many analysts attribute the last year of growth of Bitcoin value as being tied explicitly to the falling value of the Chinese Yuan. Dropping nearly 7% of its value in the last year, the Yuan is losing traction to Bitcoin and other currencies as investors plan for the future.
Could blockchain based digital currencies be that future?
Many are betting on it.
Do you think Bitcoin are a safe investment?
Though Bitchoins are the most popular blockchain based digital currency, many are also trading Ethereum, Ripple, Litecoin, Monero, and Dash as well.
At the time of writing, an individual Bitcoin is worth $1019.90.
