Bitcoin is a new digital currency that is open source, distributed, and pm bitcoin no central issuing authority. It is not backed by anything physical, like gold, yet it has been designed so that only a fixed number of bitcoins can ever be created. Bitcoins and bitcoin transactions are protected from counterfeiting and double spending by strong cryptography.
Being a very young money, bitcoin does not have a very stable value. As you can see on the logarithmic chart below, one bitcoin is now worth 100s of times what it was worth two years ago, and 10s of times what it was worth one year ago. This is because while the number of bitcoins is growing quite slowly, the number of users, and the number of transactions using bitcoins, is growing rapidly, causing demand to outstrip supply. Because it is a young currency, bitcoin has had various “teething” problems, and some of these have caused wild swings in value. As the software is refined, as more vendors start accepting bitcoin, and more users choose it for their transactions, these wild swings should damp out. Over the next 10 years or so, the number of bitcoins in circulation will approach its final total, roughly double the number in the market now. On the other hand, it is entirely possible that some flaw in the system may come to light, rendering bitcoins completely worthless.
I bought my first Bitcoins almost 2 years ago. The technology has potential to become the “gold of the Internet. The two currencies share many useful attributes. I look forward to watching this chart over time. What’s up with the log scale y axis?
It makes it harder to compare to other charts since the rest use a linear scale. Please create a chart with linear scales! Hi Slavix, I’ve put the linear version up for you. You can download a PDF of it here. I find them all to be immensely valuable. I think it’s great that your interest in Bitcoin shows up in these charts and in your blog.
Where did you get this chart from? And, where can we get this type of historical chart? I wouldnt mind trading bit coins, if i can chart them on my esignal. Are there any precious metal dealers that accept bitcoin ?