Journey of Bitcoin
“We learn from history that we do not learn from history,” said Georg Wilhelm Friedrich Hegel.
I don’t know what Hegel was thinking of when he said this, but in the context of Bitcoin and other cryptocurrencies, this quote is absolutely spot on. Time after time, decade after decade; we keep falling prey to bubbles and unfortunately, most of the cryptocurrencies have turned out to be such bubbles.
For the sake of saving time, we will focus on Bitcoin, the most popular cryptocurrency on the face of the earth.
Just a month before we saw the price of one bitcoin touch the $19,000 mark, its all-time high price. The bitcoin owners were dancing and jumping around as if they had found an extra-terrestrial life. However, since then, all those dance moves have turned into wall punches. That’s because the price of one bitcoin has fallen down more rapidly than a rocket engine falls after getting detached from a space shuttle. As we’re writing this blog right now, the price of one bitcoin is hovering around $8600 mark.
From $19,000 to $8600 in just 30 days, who would have imagined?
Many still won’t agree but the cryptocurrency market has been nothing short of a bubble, and we’re about to see it getting burst.
Let’s see the journey that Bitcoin has been through.
2010: The year when it all began
Let’s time-travel a bit. It’s 2010 and Bitcoin’s trading is just started. Throughout the year, the highest price recorded was $0.39. Yes, you read that number right. It was worth less than your napkin! Now you might be wondering why anyone didn’t notice this fortune. Well, it takes time for people to start getting trapped in such bubbles. The term ‘cryptocurrency’ was nothing short of a foreign language for almost all of us and hardly anyone had heard of it. That’s why it wasn’t getting recognized and wasn’t pulling any investors.
2013: The year when the bubble starts picking up some momentum
After 2010, from 2011 to 2013, the price increased steadily but very little. It was the last part of 2013 that saw the price rise dramatically. The price that was around $13 at the start of 2013, made an astounding high of $979.45 in the last few months of 2013. Perhaps this was the phase when some people recognized its “potential” and started buying it.
2013 to 2017: The Bubble loses its momentum
For whatever reason, Bitcoin which will later turn into a big giant bubble lost its momentum and the price started falling drastically in the period from 2013 to 2017. During this period, it made a low of $214.
2017: The year when the Bitcoin truly becomes a bubble
At the beginning of 2017, the price was around $980 mark. And boy oh boy, it started flying after that. As the price kept rising, many and many new so-called investors started joining the Bitcoin bandwagon. Most of these enthusiasts thought (or were made to think) that bitcoin is the future. Out of wisdom or greed, whatever you call it, people who didn’t have any sort of idea about Bitcoin started putting their money in it. As the number of bitcoin traders increased, it also raised its price.
The price that what was just $985 at the start of the year went to almost $16,000. If this isn’t a classic case of a bubble, we don’t know what is.
2018: The year when the bubble bursts?
As we told earlier, bitcoin price has started falling heavily as a result of many factors. Many people have started unwinding their holdings in Bitcoin before it becomes too late. Many people who bought coins when the bubble was at the peak of its power are regretting their decision. While some are still optimistic and think that it all will change. That seems highly unlikely, has to be said.
The dominoes of Bitcoin have started falling down as many had anticipated. However, one thing that will remain is the Blockchain technology. Whether Bitcoin or other hundred currencies stay or not, the Blockchain technology is here to say.
So, think about Blockchain instead of Bitcoin.