Bitcoin has faced a lot of controversy over the past years but looks at it now. It’s regarded as the mother of cryptocurrency. Thanks to its vast acceptance, it is now recognized as a legitimate and valid online currency and has paved the way for other crypto money to make their debuts. But we all knew this was coming right?
If we really think about it, the world has turned to cyberspace for many things. It would even be no exaggeration to say that most of our day-to-day dealings revolve online. Like, if I ask you now if you’ve logged on at least once today, I bet you’d answer yes. Our world today is largely influenced by the companies, facilities, and organizations that exist online. We do shopping on Amazon, we look for nearby gas stations using Google Maps, and we even go to Reddit to crowdsource opinions and suggestions. There are many, many things we do that have become a lot easier now that we have the internet. So of course, it was only a matter of time before we stepped up and started using electronic cash as well.
But you know how the initial stage of introduction went.
People mistook Bitcoin and other cryptocurrencies as a fast-lane to making quick money. If you can recall, there was a time when Bitcoin trading was all the rage and this shook the market value of the cryptocurrency greatly. From a few dollars, it shot up to a few thousand dollars per BTC. It was crazy and people were even crazier for trying to make their lazy asses rely on crypto trading to make them a bucket load of money. Then, the craziest thing that happened was fraudulent personalities tried to take advantage of the hype and put up illegitimate crypto trading platforms, luring in hopefuls and promising them instant profits. All these things lead to the misconstrued opinion people have of cryptocurrency even to this day. Read more about this here: https://www.investopedia.com/slide-show/six-biggest-misconceptions-about-bitcoin/.
Well, let me clear this once and for all:
Bitcoin is an online currency. It can be traded and exchanged just like real-world currencies.
The value of Bitcoin depends on market fluctuations. This causes the exchange rates of BCH to USD to be very volatile. This is normal for almost all kinds of currency.
Bitcoin is not an imaginary bubble that will just suddenly pop (check this out). It is real money but with no physical form. If you really think about it, “money” has value because we “give it” value. Take demonetization as an example. Whenever a new series of paper bills are produced, the old ones become devoid of value. In the same way, if some country boycotted their currency, it would lose its perceived value as well. Bitcoin has value because we give it value – that’s all there is to it. The rest is up to how the market perceives its value in contrast to all other currencies.
If you want to take a better look at how BCH is faring in the market nowadays, it would be wise to monitor its conversion value to USD. Here’s how the conversions look for the past 6 months:
As you can see, as of December of last year, the conversion rate of BCH to USD is considerably low. But as of late, the values have gone astronomically high. And this all happened in a period of 6 months. This is what I was trying to tell you about earlier – volatility. Due to various factors, the value of BCH fluctuates with market changes as any other commodity would. Does this disqualify it as a valid online currency? No, it does not. This makes it normal. If it were all highs and no lows, that’s when you should start reconsidering. After all, the market itself is volatile as proven by the fluctuating prices of everyday commodities such as gas and groceries.
Also, based on the diagram, BCH has been performing quite positively over the past few months and we don’t see it failing anytime soon. If you are planning to sell or convert your BCH to USD, this might be a good time to do it!
