Current price of 1 bitcoin

Bitcoin

Bitcoin (BTC)

EUR
29.554,21
USD
$ 35,700.00
GBP
26,272.20

You can buy bitcoins or portions of bitcoin easily, quickly and safely from 20 euros to 1 million euros from Bit2Me. It will only take a few minutes.

In this way you will have access to bitcoin, a digital currency that is transforming the world. And, bitcoin is a currency that allows you to do things that no other currency is capable of. Investing in Bitcoin is as simple as buying bitcoins. Making money with Bitcoin means buying bitcoins at a price, and selling them when their price is higher. With Bit2Me you can buy and sell bitcoins and many of the famous cryptocurrencies.

We also explain in detail how bitcoin works

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How is the price of a BTC determined?

If in January 2010 you had bought € 100 of bitcoins and sold in November 2013, the value would have been € 120.000.000. Not bad at all, right? Go from € 100 to 120 million euros, in just 3 years. And all with an investment of laughter, it seems a dream. But the truth is that with Bitcoin and its price increases it is possible. In fact, in 2017 bitcoin reached its all-time high of almost $ 20.000 USD.

Now surely you will ask yourself: How is the price of BTC determined so that situations like this occur ?. Not only did it happen and it has its explanation, but many think that a similar new situation is yet to come.

Welcome to a new article from Bit2Me Academy. Below we will help you understand everything related to the price of BTC. In addition, of the factors that determine it.

As we have already explained, Bitcoin is a distributed financial system, released in 2009 by a programmer under the pseudonym of Satoshi Nakamoto. It is not issued by any government or company (although it is increasingly supported by them) and is not considered legal tender in any country to date (although it is already beginning to fit into existing legal frameworks, such as the recent ruling that determines the Bitcoin exempt from VAT throughout Europe).

Bitcoin is powerful and a masterpiece of engineering (or as Bill Gates says of him: "a technological feat"). But, how much is a bitcoin worth? Why does it raise and lower its price so many times a day? Who determines its price? How safe is that price? Is it a scam, ponzi or strange mechanism to steal my money?.

Bitcoin as money

As we all know, money is that accepted as a means of payment for a good or service. Good money is expected to serve as a unit of account and store of value among other features.

But ... wait! If money is not accepted as a means of payment, no matter how great it is as a unit of account, and whatever you want ... is it worth anything? That is why the value of money is not closely linked to its acceptance, but is directly related.

El fiat money (which is official money such as euros or dollars, among others), as we know it today, are nothing but bills and coins with no value of their own, very far from when they represented a value in gold. They are endorsed and certified only by issuing entities.

Currently it is the governments, through imposed laws, who determine what type of money is legal tender. But it is other entities, such as central banks and the mint (CECA), that are in charge of everything. First, to regulate and control the monetary policy of an economy. Second, to create coins and bills according to demand and the need for physical and electronic money. They can create as much as they want and when they want.

No matter what time frame of history you select, this model has proven to fail miserably. Only in the XNUMXst century (and note that we have been a few years into the century) there are already multiple failures: crises, corralitos, uncontrolled inflation, ...

The currencies issued by central banks are necessary so that they can opaquely apply specific economic policies. This leaves the fate of millions of people at the whim of a few. With a click, literally, they can generate new millions of euros on a computer that devalue the purchasing power of people.

Paradoxically, most of us see current money (euros, dollars, ...) as a solution. But the reality is that it is something like a yoke that subjects us to the wishes of a few. At the same time that they make us participate in wars and excessive barbarities over and over again.

And it is that, as we already explained, Bitcoin has better properties that FIAT money (or fiduciary, that issued by governments). This with Bitcoin and other virtual currencies or cryptocurrencies is impossible. It is because emission control is decentralized and nobody controls it.

summary table with a comparison of Bitcoin with two types of traditional money

Offer and demand

But who determines its price? The price of a bitcoin (BTC) is determined by everyone who wants to participate in its buying and selling process, essentially its users. Although multiple factors play a role, ultimately, it always determines your price. Trading bitcoins allows you to distribute it and profit from it. As in other scenarios, producers (in the case of Bitcoin: miners) can propose a price when selling their bitcoins to interested parties by reaching agreements. Imagine the typical deals between two people, one proposes a price and if the other, between haggling, is willing to accept it then the transaction is made.

This can be done on the street, and it is done. But, in a computerized world like ours, it is more common to see this type of deal on specialized online platforms optimized for it. The known "Bitcoin trading platforms".

Unlike a buy-sell website, which has its prices stipulated as in Bit2Me, in a trading platform anyone can publish a purchase proposal at the desired price.

In the trading markets you also have no obligation to buy a whole bitcoin, you can buy pieces. Remember that 1 bitcoin is made up of 100 million “cents” (satoshis). If a Bitcoin is worth € 1000, you can buy 1 euro if you want.

When another offer to sell matches yours, the transaction is automatically made. This purchase - sale operation makes, only on that platform, the price of bitcoin is set at the price of the exchange made.

This that we have just described is the same process in which all the commodities that exist are traded. And it happens tens, hundreds or thousands of times per day, sometimes with great variations.

This type of operation requires a minimum of study and previous tasks, which, although at no cost, not all users are willing to do.

For many users this part of Bitcoin is not attractive and even repels them, since it seems that it does not contribute anything and most of the time it is just speculation. Buy low and sell high. But the truth is that this model is causing Bitcoin to spread and reach more sites.

The value of bitcoin has been changing over time and is based, roughly, on the trust of its users, on its usefulness and popularity.

It means that, in 2010, the value of a bitcoin was less than a cent of a euro, as many still doubted its safety, efficiency and, ultimately, its acceptance.

This operation of determining the price through the purchase - sale is not different from what happens in other sectors: legal tender currencies (Forex), raw materials, bonds, ... But in Bitcoin it has a double objective, since this at the At the same time, as it is something digital, it has been key to its capillarization, with bitcoins reaching more people.

The value of a bitcoin, just like anything you can imagine, fluctuates in value every second. And I repeat, like anything. Do you think the value of the euro is stable or any currency? Enter a Forex market and see for yourself, every moment its price changes, and the same happens with everything: stocks, metals, ... even tomatoes! We live in a dynamic world, everything goes up and down every second, even if you don't realize it or it's not so high-profile.

There is a lot of travel. What would happen to the price of Bitcoin if tomorrow Amazon decides to accept it as a means of payment? Nobody knows what will happen, not even if it will happen, but it is possible that it will happen the same as with thousands of large companies, countries, ...

There is no official or unique price for bitcoin

Once the above has been explained, you will understand that since there is not a single platform in the world where to trade (there are many and each one can have its operations) there is no world or unique price of bitcoin.

However, they tend to equate. When there are very large differences in the prices of two exchange houses, there are those who take advantage of this price difference to buy in the exchange house with a cheap price and sell in the expensive one. This, which is something that is done on a daily basis, is known as arbitrage, resulting in price homogeneity on the different exchange platforms in just minutes.

However, not in all sites it occurs, especially in places with great access complexity. For example in Africa, where it is more difficult to access bitcoins, local users can exchange them at a very different price than in Europe and be equally attractive because the local community is useful at that price.

Bitcoin as a means of payment

Something curious about Bitcoin, despite not having changed its source code excessively since its inception, is that it went unnoticed for a long time. Furthermore, the few who did pay attention to it did not take it seriously enough to be a firm alternative to the traditional financial system.

For more than a year a bitcoin was worth absolutely nothing. It was a currency that very few users, curious or visionaries as a whole, sent each other as a reward for useful or funny answers in forums.

The first bitcoin price in history occurred on May 22 of the 2010. This was on the forum BitcoinTalk, where the user jerks decided to buy the user two pizzas with his credit card Laszlo in exchange for 10,000 bitcoins, possibly with an exchange rate of 1BTC = $ 0.003.

This simple fact was the spark that ignited an accelerated process of appreciation. The then holders of bitcoins realized that they could access goods or services with their current cryptocurrencies, to date without economic value, making it clear that Bitcoin definitely had the capacity to become what its ideologue and creator, Satoshi Nakamoto, had proposed: an alternative and improved global financial system.

This caused many people to sell bitcoins that previously had no value for a few euros. Go figure! You have 10.000 bitcoins that you have obtained for free or for one euro, and suddenly you can get 100 € for everyone. You, without being a fortune teller, what would you do?

Only some visionaries (or, surely, mostly confused) could find themselves in situations like those of 2013, with millions of euros in their hands or trying to find a computer with thousands of bitcoins that had been thrown away by mistake. Despite that, 2013 was a year of many new millionaires thanks to Bitcoin.

Bitcoin price history

After 10 years of its creation, Bitcoin is also characterized by its high volatility. Throughout its short, but intense existence, a single bitcoin has gone from literally nothing to almost $ 20.000. Exchanges or cryptocurrency markets can show us a very detailed history of how the BTC / USD pair has evolved throughout this time. All this information can help us choose the best time to invest in bitcoin.

Do not miss the evolution of the price of Bitcoin ordered by milestones
Bitcoin price history.

Halving

As we have already explained in the article: What is mining bitcoins?, in Bitcoin, bitcoins appear as a reward to miners. The reward, stipulated in the open source of Bitcoin, is dividing in half every 210,000 blocks, about 4 years approximately, counting that each block is mined every 10 minutes on average.

This event of dividing the reward in half every 4 years or so is known as Halving. Every bitcoin that exists was owned, first of all, by a miner and it is the way in which the 21 million bitcoins that will exist.

There are those who believe that after a halving the price of bitcoin in the markets rises due to the cause - effect it generates in the ecosystem.

Do you want to know more about the "halving"?
It is one of the most important events in Bitcoin and you can expand your information by reading the following article:
Halving Bitcoin.

Bitcoin issuance

External events

In a supply and demand system, every internal and external event has an effect on price. There are many positive and negative events that have occurred in Bitcoin, for example one of the most dramatic was the case of MT. gox, which to this day is still unsolved: The largest and most famous Bitcoin exchange MT. Gox shows a blank page on its website on February 24, 2014, leaving a debt of more than 850,000 bitcoins to its users, valued at more than 450 million US dollars at the time.

These events of fraud and theft of cryptocurrencies in specialized markets they leave their mark on traders, and consequently on the price of bitcoin, usually in proportion to the echo that the media makes of the event.

These events, which have little to do with Bitcoin and its technology, affect its reputation, especially when the media consciously or unconsciously link it to failures in Bitcoin without explaining in detail what happened.

The miners

What do miners have to say about the price of bitcoin? Of course they are an essential piece in the ecosystem and also their generalized position can make the price go up or down to a greater or lesser extent. Rather than setting prices, normally, in them you see the consequences, you just have to look at the active node map how they disappear nodes when the price of bitcoin is low. Many of them simply disappear because the reward is not enough to cover expenses and make a profit.

The miners are related to the price by pure logic. The price of each Bitcoin is represented by its mining value. But its mining value is not always the same. Due to the dynamic complexity in mining Bitcoin, it may cost more or less depending on the competition. Mining has high electrical consumption and those consumption have a cost. In this way, if demand suddenly skyrockets, mining will be so profitable that many other miners will want to earn money, and when they start mining they increase the complexity of mining, so that the cost will return to what people are willing to do. to give for each bitcoin, since if not, it would not be profitable.

This model generates a tug of war that makes the price of Bitcoin always be backed by its cost of mining, so bitcoin has intrinsic value, and is not FIAT.

Bitcoin is characterized by having, and is one of its best assets, the most powerful computer network on the planet. What would happen if a large part of the mining nodes disappear overnight? Would this affect its price?

Technically, the network would readjust instantly and follow its normal course, but possibly a similar event would affect the price, due at least to the media echo generated.

Halving are curious events, because in theory they eliminate many miners at a stroke because the cost of mining does not compensate, unless the price of bitcoin doubles.

But the reality is not that simple. Of course the miners want high prices, their rewards and commissions are received in bitcoins, but on the other hand, without miners, the Bitcoin network loses strength, which in turn, and after a "butterfly effect", causes the price of bitcoin to fall. devalue.

We must also remember that a Bitcoin transaction has a commission, and miners can always determine which transactions they accept based on the commission. In terms of decisions and policies, they can determine the price of bitcoin.

The volatility

You're probably wondering as if such a volatile coin can work. If something characterizes and scares Bitcoin is just that, volatility. This is what increases the price of Bitcoin, or lowers it. This means that today I can have € 100 and tomorrow I can have € 80 or € 120. Surely you ask yourself: How can such a system be reliable?

It is very important to understand that Bitcoin was born in 2009. Every new exchange of value suffers in its first years of volatility, and Bitcoin is not on the fringes of it. Volatility starts from speculation. Every day thousands of people try to buy low and sell high. When a person buys and later sells, it is making it reach other hands, which repeated millions of times together with media activity generates millions of new users reaching him. This is just what is happening.

Something that at first seems absurd and pure speculation generates the propagation of it, with the joys and sorrows of speculative decisions on exchange platforms. Would Bitcoin have become so famous if people didn't see it as a means of investment? It has many advantages, but for it to really make sense it has to be a global system. To achieve this, it has to go through a few years of expansion. One that will allow its users to enjoy their full potential. Let's remember that there is no multinational or government interested in forcing us to use it or put it through the eyes in constant advertising to gain users with whom they will later profit, which is why this constant rise and fall of Bitcoin for the moment seems to be working in its expansion.

Bitcoin price future

It is not a simple task. It is of little use to analyze the current and historical price if it is not to observe a trend throughout its history.

Despite the fact that Bitcoin uses technology superior to that used by governments and banks, nobody knows what may happen in the future. We do not know how technology will evolve, energy consumption, ...

3 out of 4 bitcoins that will exist are already on the market. Here you can see a real graph of how they have been issued and how many bitcoins are in circulation.

And of those 3, estimates indicate that 3 out of 4 bitcoins are being used as savings, as a store of value. If you also tell that many have been blocked forever by lost private keys. With this, the result of real bitcoins that can be used on a daily basis is even more limited.

While some foresee a Bitcoin failure, others just the opposite. Among them Rickard Falkvinge, leader and founder of the Pirate Party, who maintains that between 2020 and 2025 its price could be between 100.000 and 1.000.000 euros or more optimistic scenarios that place it at a value of 47 million euros for each Bitcoin in the following decades.

They also foresee a stability in their price after the growth stage.

Bitcoin detractors defend that it is something that could disappear at any time. But how do you magically make something that millions of people have disappear and each month new users arrive exponentially? An open, transparent system with some of the best minds on the planet working on it, many for pleasure. How do you stop that?

Bitcoin, when analyzed over time you see that it seems to be much stronger, fair and powerful for the user even than the fiat money of a country.

Let's remember that a bitcoin is divisible, and has 100 million satoshis (its smallest unit), and a future may come where 1 satoshi is equated with 1 euro cent and worth the million euros that we mentioned above, but be careful! Bitcoin works by consensus, and that number of decimal places could be increased if it becomes necessary and the majority of the nodes agree.

Keep calm and relax

Be that as it may, the price of BTC will come to be worth what people are willing to pay for it. This, as we have mentioned, Bitcoin is determined by the trust of its users. But also because of the supply and demand in the exchange markets.

Currently hundreds of stores accept Bitcoin as a means of payment. You can see some of the most important ones here.

Where to use Bitcoin

Do you think that a system capable of managing world economic accounting in the most optimal, transparent, decentralized and cheap way than the traditional one, and that earns millions of users each year, will disappear? And if it does not disappear, how far do you think the price of a single BTC will go?

If you have not yet bought your first bitcoins learn how to buy bitcoins here.

And, as always, don't forget to share this chapter on social media. A new, fairer, cheaper and more equitable financial system has been born. Together we will make more people know it.

Open your Bit2Me user account. Following this link you will get € 5 totally free on your first purchase: https://bit2me.com/?r=EM9-7SU-JUG