Understanding Bitcoin’s price volatility
In May of 2010, the first significant Bitcoin transaction was exchanged. A pizza worth roughly $25 was purchased for 10,000 bitcoin. At today’s pricing, where a single bitcoin is worth about $250, the same amount of bitcoin would be worth approximately $2,500,00. In retrospect, it was a “worthy” pizza!
Since then, Bitcoin’s volatile price movements took the exchange rate, in US dollars, up to $1200 in 2013 and back down to $180 in 2015. It’s quite an impressive history for a currency that’s only six years old.
Before investing your own money in Bitcoin, it’s advisable to become familiar withthe reputable services available, as well as its price history. Linking significant events and stories to the price is a fundamental approach to trading bitcoin. Compared to most other global markets, Bitcoin has an overall low volume. Thus, a large move by a big player can alter the price very quickly. Make sure to assess your personal financial risk level before investing any large amount of money in Bitcoin.