Cryptocurrencies have experienced many ups and downs between 2009, when a cryptocurrency first appeared on the market (Bitcoin), and today.
The unusual alternative currency, which many did not foresee succeeding in the long term, has proven quite resistant to change. Of course, as in the case of other currencies, we could see a significant increase in the popularity of Bitcoin and altcoins, but also periods when almost everyone suspected that this market was about to collapse. So, what is the situation today? To answer this question, we need to go back to the beginning.
How Did It Start?
It all started with Satoshi Nakamoto (pseudonym), a mysterious developer who created Bitcoin in 2009. Bitcoin could not be bought freely in the market for the first two years. When it came out, it was worth less than $15 and stayed that way for about a year.
However, a year after that, the value of this cryptocurrency increased more than ten times, and the following year, it oscillated between 200 and 800 dollars.
It is worth mentioning that these sudden oscillations, which still follow all crypto options, are one of the reasons why people are skeptical about them. However, if we look at fiat currencies, we will notice that they tend to fluctuate in their nominal value or lose their actual worth due to inflation.
In any case, during this period, there was also a gradual increase in the popularity of this means of payment.
The Golden Era
Although according to some experts the period between 2017 and 2018 was the beginning of the golden age of Bitcoin and alternative coins, most agree that 2020 and 2021 are when this payment method became mainstream.
As for the previous period, in December 2017, Bitcoin reached an incredible (and unexpected) $19,783. In five days, that value almost halved and later began to fall even more.
Several events affected the short-term happiness of crypto miners and owners – the possible ban on crypto in South Korea, the hacking attack of Japan’s Coincheck crypto market, the Binance API breach, and the prohibition of token sales on the major social media networks. As a result, Bitcoin’s price was around $5,500 in the end.
This was not the first time such events have had an effect on value, but these were quite dramatic and occurred quickly. Let’s not forget that every change had an effect on the rest of the so-called altcoins (other cryptocurrencies)
The actual golden age started in November 2020 when Bitcoin reached $19,000. This was the beginning of the crypto craze, joined by people who did not even know this concept. In mid-April 2021, the value reached a record $64,000, and many predicted it would get to $100,000 by the end of the year, which, as we all know now, did not happen.
What’s Going on at the Moment?
The reason we referred to historical data is simple – to remind us how volatile cryptocurrencies can be.
It must be noted that there is nothing unusual in the decline in their value after the spectacular growth that we described above. The rise in demand created a bubble that had to burst at some point. Fortunately, that burst was not as fatal as it was thought.
We can see that even today we have relative stability in the value of Bitcoin, which fluctuates between $20,000 and $30,000 all year.
When someone asks if the days of Bitcoin and altcoins are over, they need to look at the bigger picture. That picture doesn’t just cover the current (and, if you will, the historical) value of Bitcoin. Many other factors also play a role here.
Many sites still accept Bitcoin, Ethereum, Litecoin, etc. as payment. For instance, Microsoft has been accepting Bitcoin payments at its online Xbox Store for almost 10 years now, and most of the best new casinos online in Canada, like Izzi Casino, allow players to deposit using 6 crypto payment options. From what can be observed, hardly anyone has thrown them out of use, and the number of those who take them is increasing. In some instances, as in online casinos, some sites specialize in this or offer special bonuses for crypto players.
On the other hand, the political and social developments seem to be gaining more intensity in recent years. It all started with the pandemic and the transfer of a large part of work to the Internet and online transactions, which benefited cryptocurrencies. Among other things, this is why the market cap of Bitcoin has been between 500 billion and 1 trillion in the last three years.
Of course, here we must also mention the great conflict in Ukraine, which has also changed international relations, creating significant financial uncertainty among people. Some have recognized Bitcoin/altcoins as a great alternative, given their decentralization and the fact that they aren’t connected to any central bank.
It also led to changes in laws, such as those of Russia, where cryptocurrencies went from being generally prohibited to being permitted assets. However, in China, they are completely banned. Whereas in the countries of the Western world, cryptocurrencies are generally allowed. Another peculiar thing is that El Salvador and the Central African Republic accepted Bitcoin as an official currency.
Given what we’ve shared so far, it’s logical to say that Bitcoin and altcoins are far from extinction. On the contrary, in our opinion, there are no indications of an inevitable slowdown in their progress.
It is true that a year ago, people had expectations that were too high, and probably many thought that they would become millionaires overnight, but it did not happen. For those who are part of this world, get-rich-overnight schemes were not part of their agendas.
The popularity of crypto is not only in its potential value but also in lower transaction fees, faster transactions, the ability to maintain anonymity and privacy during transfers, and decentralization Also, over the years Bitcoin has become a symbol of maintaining civil liberties in the face of increasing attempts at control by some governments.
By Andrej Trajkovski