# Bitcoin: A Game Changer. By [Nitin](https://paragraph.com/@nitin-5) · 2023-03-23 --- **INTRODUCTION** How many times has bitcoin been declared dead? At least 463 times. And it’s never been because of its monetary system failing or its technical operation breaking down, but because of its price crashing. Some may argue that those two things — tech development and price actions — are inherently connected, but that’s not the case. Price swings in bitcoin are mainly driven by its own halving cycles as well as macroeconomic events. Since it roared into life from humble beginnings, bitcoin has had a turbulent history. Its infamous volatility has resulted in multiple appreciations of 1,000% in value, only to later drop by as much as 80% or even 90% — such as in 2014. Every single time, though, it has bounced back, recovered its previous highs and gone on to set new ones. This resilience has proven some of the most seasoned investors wrong and won new supporters along the way. **What is Bitcoin?** Created to counter the 2008 financial crisis, bitcoin has weathered extreme volatility, spiking to US$19,650 in 2017 before spending years locked below US$10,000. The cryptocurrency was unveiled in late 2008 with the goal of revolutionizing the monetary system, and was first introduced in a white paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System.” The nine-page manifesto was penned by a notoriously elusive person (or persons) who used the pseudonym Satoshi Nakamoto, and it lays out a compelling argument and groundwork for the creation of a cyber-currency. Cryptographically secured, the peer-to-peer electronic payment system was designed to be transparent and resistant to censorship, using the power of blockchain technology to create an immutable ledger preventing double-spending. The true allure for Bitcoin’s early adopters was in its potential to wrestle power away from banks and financial institutes and give it to the masses. This was especially enticing as the fallout from the 2008 financial collapse ricocheted internationally. Described as the worst financial crisis since the Great Depression, US$7.4 billion in value was erased from the US stock market in 11 months, while the global economy shrank by an estimated US$2 trillion. In July 2010, bitcoin began trading at US$0.0008, climbing to US$0.08 by the end of the month. The cryptocurrency then slowly rose into the US$10 range until it spiked to US$250 in April 2013. **How many bitcoins are there?** Unlike traditional currencies that can increase circulation through printing, the number of bitcoins is finite. There are 21 million in existence, of which 19,144,112 are in circulation, leaving just under 2 million to be mined. This limit is a core function of Bitcoin's algorithm, and was designed to offset inflation by maintaining scarcity. A new bitcoin is created when a bitcoin miner uses highly specialized software to complete a block of transaction verifications on the Bitcoin blockchain. Roughly 900 bitcoins are currently mined per day; however, after 210,000 blocks are completed, the bitcoin protocol automatically reduces the number of new coins issued by half. Halvings have occurred every four years since 2012, with the most recent happening in May 2020. Halving not only counteracts inflation, but also supports the cryptocurrency’s value by ensuring that its price will increase if demand remains the same. At the moment, miners are paid 6.25 bitcoin for every block they complete. **How is Bitcoin different from other Cryptocurrencies?** While Bitcoin may be the original digital currency, others have been created since. Yet, Bitcoin has managed to remain unique in a number of ways and other cryptocurrencies are even referred to as Altcoins (alternative coins to Bitcoin)... Other cryptocurrencies have been developed since 2009 with the potential to manage digital economies like Ethereum. They focused on developing contracts and digital services that can be paid for using their own specific digital coins. For example, Axie Infinity (AXSUSD) is actually a native token and coin made for payment and operation on its own network and game, while Bitcoin can act as a fiat currency. Bitcoin has remained a form of cross-platform currency. Without being limited for use on specific Bitcoin-only platforms, this cryptocurrency can be used to make purchases anywhere in the world where it is accepted. Furthermore, the main aim behind Bitcoin is to increase transaction speed without numerous government restrictions. In 2020 Bitcoin made headlines when Paypal (PYPL) announced that this popular currency will be recognized as a payment on their platform. **Conclusion** In conclusion, Bitcoin has a colourful background as the world’s first cryptocurrency. Trading Bitcoin by using CFDs is one way to potentially take advantage of the crypto’s price movements without having to purchase the asset directly. Nevertheless, you should be aware that the value of Bitcoin CFDs is vulnerable to sharp changes due to unexpected events or changes in market sentiments. Therefore, you should ensure that you fully understand the risks before you start trading. In addition, you can refer to Plus500’s Trading Academy which includes FAQs, a free eBook, and free how-to trading video guides to sharpen your trading knowledge and utilise Plus500’s free risk management tools to minimize any potential losses. --- *Originally published on [Nitin](https://paragraph.com/@nitin-5/bitcoin-a-game-changer)*