This is a question we all keep asking for the past 2 years after bitcoin’s major drop since late 2013, a question which we shall try to answer with the help of this graph:
As you can see in this graph, bitcoin’s highest level was back in November 2013 when the rate exchange was nearly 1 bitcoin for 1200 US Dollars. Back then everyone were jumping aboard the bitcoin train and everyone thought it would rise even more, but then something happened that only a few expected, and it went down, RAPIDLY!
You can see that on January 2014 bitcoin dropped to around the 400$ per bitcoin mark, which is a drop of 200% in just 2 months.
And it hasn’t stopped ever since, bitcoin goes up and down every day, but as you can see in the graph, the overall epidemic is that it’s going down, and as of February 2016, the current bitcoin exchange rate is 371US Dollars per bitcoin.
Supply and demand is a very well-known rule in economy. And bitcoin isn’t different, when people were going crazy for bitcoin in late 2013, it rose beyond it’s true worth because of the lack of supply. Once it calmed down, bitcoin was dropping down again, and then people who were nervous started selling and the price just went down more and more until it reached a level of 400$.
With our experience with bitcoin here at Coinish, we believe that the true worth of bitcoin is around the middle and in the 600$ mark. Therefore there is still a very high incentive to keep investing in bitcoin and especially in using great bitcoin mining hardware to earn some bitcoins!
Make sure to check out our next post next Sunday!