A Guide to Understanding Bitcoin Exchange Rates

If you’re reading this article, chances are you’re interested to know more about the crypto-currency was known as ‘bitcoin.’ Seemingly blowing up from out of nowhere, bitcoin swept the internet by storm. If you’re one of the lucky few who managed to get their hands on some bitcoins before they became extremely valuable, then you might have struck gold. If you are a beginner planning on buying some, the task of understanding bitcoin exchange rates and price charts can be somewhat daunting. In this guide will keep it simple for you.

What is bitcoin?

Let’s talk about cryptocurrency. Like money that you can use as a medium of exchange, cryptocurrency essentially works the same, except that it is done virtually. It uses a unique set of code, called cryptography as a sort of serial number to control the virtual currency. It is also used to secure and verify all transactions that are made. In a nutshell, cryptocurrency is an exchange of digital information that enables you to buy and sell goods and services.

Bitcoin is perhaps the most popular forms of cryptocurrency with a current market cap of more than $100 billion. That’s a long way from its emergence back in 2008. The main idea behind bitcoin is for the seller to be entirely in charge, get rid of middlemen, interest fees and above all, make every transaction transparent to get rid of total corruption. Nowadays, Bitcoin is accepted in many companies and shops all over the world. This roster includes famous companies like PayPal, Expedia, and even Microsoft.

How does bitcoin work?

Before we delve into bitcoin exchange rates and how to understand them, let’s talk a little bit about how it works. Because Bitcoin was made for complete transparency, all confirmed transactions or ‘blocks’ are logged in what is called blockchain. When the blocks enter blockchain, every user is able to see the transaction. This prevents double-spending and stealing completely.

What is the current price of Bitcoin?

There are plenty of places where you can find out the current price and exchange rates of Bitcoin. It is good to look at the most popular exchanges at the moment like Bitfinex and Bitstamp. You can also look at Coindesk’s own Bitcoin Price Index which also displays the prices and fluctuations of other cryptocurrencies.

According to xe, one of the world’s trusted currency authority, the most popular Bitcoin exchange rate is the XBT to USD rate.

How much is Bitcoin’s worth?

Ever since its conception in 2008, Bitcoin’s growth is one that still sparks debates all over the financial industry. If you bought bitcoin a year ago, its worth now is probably ten times more than how much it was in 2017. Many people argue that its market is extremely volatile and cannot be trusted. However, there’s no denying that its value today is high and it’s an industry that continues to grow exponentially, with some wall street commentators even claiming a considerable increase in mid-2018. In contrast, other experts continually argue about its imminent collapse. The truth is that despite all of these debates and research, no one really knows what will happen to cryptocurrency in the long run.

Where can I learn more?

There are quite a number of websites dedicated to various cryptocurrency information, news and exchange rates. If you want to have more in-depth information and analysis about bitcoin, you can check out these three websites:

  • 99Bitcoins – the perfect place to learn more about Bitcoin, 99Bitcoins offer tons of educational modules from videos to text guides.
  • Cryptocompare – built for more serious Bitcoin traders, you can find various guides, news, and in-depth analysis to help you stay updated with cryptocurrency.
  • Bitcoin Talk – this is a user forum where you can communicate with other cryptocurrency users and enthusiasts.

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