The rise of bitcoin after a tremendous fall

Bitcoin has made cryptocurrency a real debate on many platforms the world over. Where many people know what Bitcoin exactly is, some don’t know much about digital currencies. Still, most internet users would have definitely heard about cryptocurrencies like Bitcoin. Plus, due to many well-reputed and profitable crypto trading systems like the bitcoin code app, any internet user with a bank account can earn through bitcoin.

What exactly is a bitcoin and how does it work?

As a matter of fact, the concept of digital money transactions online is not that complicated in itself. It makes sense as most of us would be familiar with transferring money from one online bank account to another within few minutes.

In simple terms, bitcoin is known as a digital asset that operates almost like a normal currency, but without the involvement of banks, that takes a cut with every transaction. The only prominent difference is that there is no physical version of the coin. Each bitcoin is minted or created using an encrypted code, which is a complicated combination of letters and numbers.

Bitcoin rises again from the ashes

The price of bitcoin pushed past $61,000 Friday, reaching a 24-hour high of $61,822, according to recent bitcoin data. The surprising fact is that this is the highest price has been since May. As in may it had a stretch of days between $55,000 and $60,000.

The latest increase was much lower than the recent all-time high to over $40,000 since its last push in early September which was over $50,000. The beginning of April was also closer to its all-time high above $60,000. The bitcoin enthusiasts would have remembered a high that was followed by a drop to under $30,000 and it was as recent as July 20.

So now what should crypto traders and investors make of this latest increase?

Considering bitcoin's history of volatility, this increase doesn’t seem to be a long-term reversal. As before, this trend will continue, Bitcoin’s price volatility will gradually fall back down as it is to continue climbing. The price swings will keep happening. According to crypto experts, this is something a long term investor will have to continue dealing with.

Why cryptocurrency is considered the most volatile digital asset?

In order to make it simple, the most obvious reason that possibly makes sense is that it is still at a very recent development stage compared to other forms of investment tools and currency. That's why we see sharp ups and downs in the price movement of cryptocurrencies. With a desire to become wealthy quickly, investors are motivated and encouraged to experiment with their money. Plus, they are also making efforts to figure out how cryptocurrency prices fluctuate over time so that they can make a huge margin from its volatility.

As far as bitcoin is concerned we all have witnessed its price movement almost wildly this year so far. You would have remembered that early this year, it went almost below $30,000 but within few months it started peaking in February and by April.

The start of this month was not good for the world's most popular cryptocurrency as its price crashed to where it was in January. Somehow managed to recover its position, started in June and by August it successfully crossed the $50,000 mark. But within no time, it again crashed below that threshold. The case is more or less similar for most other different types of digital or traditional currencies.

Conclusion

Many people are still waiting to see whether those who have invested suffer or gain. And it makes sense why some investors and traders are waiting for the right time to invest, as the highly volatile nature of cryptocurrency is something difficult to predict. Those who have understood its core price movement are the ones enjoying its lucrative pleasure.