The reasons as to why Bitcoin is likely to keep rising in value

Is Bitcoin stable? Do people actually make money from trading Bitcoin? Here's all you need to know

Bitcoin is the centre of attention in the global financial industry. As it managed to cross $50,000 in value for the first time in its history, the cryptocurrency is now as valuable as gold, which is a huge milestone.

But, one of the questions that bother many traders is whether Bitcoin will maintain its stability and keep rising in value, or plunge like it did in 2017. That is exactly the topic that we wanted to discuss. We are going to see why this cryptocurrency has the potential to keep rising in value and maintain its stability for a long time to come.

How people make money with it?

Making money with Bitcon has 2 stages – earning it and selling it. The first way to earn Bitcoin is simple – you just buy it. The second way is way harder, but free and it is called mining. In this process, miners solve complex puzzles. Each solved puzzle is a successfully verified transaction made with Bitcoin. The reward for each transaction is Bitcoins.

After you earn it, you go to the second stage – selling it. Selling Bitcoins takes place at trading sites. These platforms are very intriguing because they are not just marketplaces, but they also provide you with the tools to determine when is the best time to sell your assets.

Let’ take, one of the most reputable sites of this character as an example. This platform has an advanced AI system which can analyze the market by collecting all the data about Bitcoin. The data is used to determine how will Bitcoin fluctuate shortly and the results are very precise.

Knowing the future fluctuations is important as they will provide you with information on when is the best time to sell your Bitcoins, thus make the highest possible profit.

Now, let’s check out why Bitcoin will keep rising in value.

Bitcoin is now far more stable

Ever since Bitcoin topped $20,000 for the first time in history, its value has been steadily going up. On the two past occasions (which we will also touch on), after Bitcoin managed to spike, its value plunged very shortly after that.

Here we are, three months later since Bitcoin broke the 2017 record in value, and the cryptocurrency still keeps rising. This leads us to believe that this cryptocurrency has now finally reached a state where it can handle the rise of users and computing power that is converted into it, which is why it is not likely that the cryptocurrency will plunge anytime soon.

You learn from past mistakes

Bitcoin has had 2 past periods when its price managed to sky-rocket, then plunge in a matter of days. The first one was in 2014 when Bitcoin was valued at around $800, but it managed to plunge to $314 shortly after that. It took Bitcoin 2 2years to return to its stable state and managed to record growth in value in 2015.

The second was one of the biggest historical moments for this cryptocurrency. After Bitcoin spent most of 2017 with a slow and steady rise in value, the sudden interest in this cryptocurrency towards the end of the year escalated and Bitcoin reached a record-breaking value of over $19,000. But, since this was the first time for this cryptocurrency to deal with such a sudden spike, its network was not ready for the pressure and it plunged in just 2 days.

Let’s say that these two events were necessary as they enabled the network to learn from past mistakes, improve, and use the knowledge to make sure that it does not happen again. Judging from the state of Bitcoin now, we can say that the mistakes are learned and solutions have been implemented.