Bitcoin was the first digital currency to be created. It is also the most respected, capitalised and traded cryptocurrency in the world. Bitcoin trading is booming, and a big reason for this is the volatility of this cryptocurrency.
Currency trading allows for maximum yield when it is volatile – lots of ups and downs. This is precisely the reason global traders enjoy trading Bitcoin. Plenty of profitable opportunities are available when markets are volatile, and Bitcoin ranks highly with currency traders.
The media plays a big part in the volatility of Bitcoin. Whenever a breaking story surfaces, Bitcoin volatility increases, and traders cash in. History has shown that Bitcoin traders and speculators routinely push this digital currency to the forefront of CFD trading.
It is increasingly being used as the preferred payment option for merchants, money transfers and trading purposes. More traders are turning to Bitcoin trading than ever before, and that is why this cryptocurrency is inherently valuable. It is a high demand financial trading instrument, despite no association with governments or central banks.
Bitcoins are mined with powerful computer hardware and software. A maximum of 21 million Bitcoin will be available, after which no further bitcoins will be produced. The algorithm which governs the production of Bitcoin limits the quantity that will be produced, and the rate at which they will be produced. It is a finite commodity – there is a fixed amount, and that ensures that greater demand will always prop up the price. In this way, it is similar to other finite commodities such as crude oil, silver, or gold.