The properties of these clusters, like their size and balance, can be computed for different time periods and compared. By applying clustering techniques to the addresses, individual entities can be identified. Transactions are stored within a block, and the ledger defines each block’s properties, including the transactions that took place and the addresses they involved. Its peak was the highest and its crash was felt the strongest.īitcoin transactions are recorded on a publicly-available distributed ledger known as the blockchain, providing a rich dataset for analysis of the currency. Thus, the bitcoin industry has seen a number of bubbles form and burst throughout the years, but the one of late 2017 was by far the most significant in size. The price of bitcoin is marked with notable volatility, and negative news surrounding prominent exchanges or regulations can send the price plummeting. This pushed financial institutions and regulators to acknowledge the currency and think of ways to control its use. While the price of a bitcoin was almost negligible at first, it grew over time due to increasing investment and speculation, soaring to price of almost $20,000 by the end of 2017. The currency had no intrinsic value or backing other than its finite supply capped at 21 million coins. It would allow for direct peer-to-peer transactions, be maintained by computers within the network, and theoretically protect users’ anonymities. Operations Research and Financial Engineeringīitcoin was introduced as the world’s first decentralized digital currency in a whitepaper published in October 2008 under the pseudonym Satoshi Nakamoto. Please use this identifier to cite or link to this item:īursting the Bubble: An Analysis of Bitcoin's Peak Prices Princeton University Undergraduate Senior Theses, 1924-2022

Princeton University Doctoral Dissertations, 2011-2022 Princeton School of Public and International Affairs Liechtenstein Institute on Self-Determination

Lewis-Sigler Institute for Integrative Genomics Department of Slavic Languages and Literatures

Bitcoin price december 2017