When the concept of cryptocurrencies first arose over a decade ago, they seemed to exist more in theory rather than for practical use. While some types of currency attempted to be used by consumers, they failed to take off. It actually wasn't until 2009 that Bitcoin became used as an online currency with its usage increasing in recent years.
In the beginning, Bitcoin was mined through its software. Since it wasn't traded in the beginning, it did not have a monetary value associated with it. It was a year later, that someone decided to sell some of their bitcoin. In order to satisfy a craving for pizza, 10,000 coins were exchanged for two pizzas. If this same amount was used today, those two pizzas would have cost more than $100 million. An exchange rate was established making Bitcoin available for use as online currency. By 2011, the value of one bitcoin was equivalent to $1. Bitcoin's value appears to have peaked in 2017 with one coin being valued at almost $20,000. Even though Bitcoin's popularity and value were rising, some users of the cryptocurrency were quite frustrated with how the Bitcoin network operated. With more and more miners of Bitcoin, the amount of fees also increased. Additionally, the time needed to process transactions also rose.
During 2018, the value of the currency declined significantly. Many Bitcoin users were planning on keeping their Bitcoin as they anticipated the value to continue its upward climb. However, out of fear of Bitcoin disappearing, many began selling their Bitcoin causing the value to plummet. In June 2018, one Bitcoin was worth only $5818. At this writing, Bitcoin is worth a little over $6,700 after regaining some of its value.
Many wonder if Bitcoin will continue to be one of the most valued cryptocurrencies. As of now, Bitcoin dominates these currencies as has established the standards for the industry. Some cryptocurrencies include Litecoin which generated blocks more quickly and has shorter transaction times. Zcash is another option which provides increased privacy and security. Dash, originally dubbed darkcoin, is similar to bitcoin but much more secretive. Users have more anonymity with transactions being virtually untraceable. Despite other cryptocurrencies being circulated, Bitcoin still remains dominant with the highest value and the industry leader.
It is believed that Bitcoin will continue to be the dominant cryptocurrency as more and more consumers see the value of its use. While other cryptocurrencies may be created, Bitcoin was the first and has an established history. Additionally, when choosing a cryptocurrency, most consumers opt for Bitcoin as its history and name make consumers feel more comfortable investing in it.
Will the value of Bitcoin begin to rise again or has it calibrated to match the market? Regardless of its value, Bitcoin isn't going anywhere any time soon.