Is Bitcoin Returning?

Published on December 23, 2011

Is Bitcoin Returning?

    After the crisis since October, a massive hack of exchanges and a huge wave of negative PR in the press, the BTC rate fell to a minimum of $ 2, falling 90% in five months. However, since then the rate has been growing almost continuously and is now at about $ 4 per BTC.



    Perhaps, there is already reason to talk about overcoming the crisis and partially regaining confidence in this financial instrument. If the skeptics explained the initial growth of the cryptocurrency in 2010 and the beginning of 2011 by inflating the bubble and saw a typical hype, now the bubble has already burst and, apparently, the current steady growth is due to a more adequate supply-demand ratio.

    According to journalist Ars Technica, Now it would be more correct to consider BTC not so much as a separate currency, but as a meta currency, a convenient means of transferring money between residents of different countries - a kind of alternative to a bank transfer or systems like Western Union. Indeed, on the exchange, you can exchange dollars for BTC in a few minutes, transfer them to your friend abroad (without interest on the transfer), and within a few minutes he will exchange them back - and again will receive dollars in Webmoney or another payment system that is linked to a real bank account.