What is Bitcoin and why is its price so high – is the bitcoin price too high!?!
Bitcoin Bitcoin Bitcoin Bitcoin Bitcoin mania seems to have gripped the world as the digital currencies price has reached Astronomical levels seven years ago you could buy one Bitcoin for 10 cents now It'll cost you more than $10,000 but what exactly is Bitcoin and why is its price gone so high? But simply it's a digital currency that can be used to buy and sell things But it's got some key differences from real cash first of all there are no coins and no notes bitcoin exists only online Secondly there's no government than those central bank controlling the supply of Bitcoin Bitcoin is produced through a system known as mining by Supercomputers all transactions are then stored almost known as a blockchain which is held in thousands of different places
They'll keep things secure Supporters of Bitcoin argue that blockchain technology is revolutionary and the Bitcoin will one day largely replace traditional money They argue this means that its value is even higher than its current high value suggests It's true You can use Bitcoin a lot more widely than you used to be able to you can buy software from Microsoft Holidays from Expedia even albums from Bjork, but it's still a long long way from being truly mainstream So we're getting to the close of a bubble phase a lot of experts say that Bitcoin is experiencing a classic financial bubble it will burst They say the only question is when so far Bitcoin has been a victim of its own success It's been hugely popular as an investment largely based on the fact that one day It will be widely used as a currency But this popularity actually works and worked really really badly as a currency Money is supposed to hold its value so that when you go to the shops You know roughly how much you're gonna spend But Bitcoin has been going up 10 20 % miss single day And then crashing just as fast making it pretty much impossible to put a reliable price on anything Such huge Rises means There's actually a big disincentive to buy something with it Why hand over a precious Bitcoin today? When it could be worth loads more tomorrow? This may not matter in the short term Ultimately the value of anything is set by what people are willing to pay for it And it flows more people jump onto the Bitcoin craze the price could go higher and higher But in the long term if the currency isn't able to do the thing is designed to do the Bitcoin bubble might just burst Thank for watching