Disclaimer: The views expressed in the article are solely that of the author and do not represent those of, nor should the be attributed to CCN. Over the past year, the bitcoin landscape has seen dramatic changes. In the beginning of 2015, the price of Bitcoin…
Disclaimer: The views expressed in the article are solely that of the author and do not represent those of, nor should the be attributed to CCN.
Over the past year, the bitcoin landscape has seen dramatic changes.
In the beginning of 2015, the price of Bitcoin was $313.92 and today a quick Google search gave me a price of $456.26. That’s an increase of about 45.34%. But this article is not about the price of Bitcoin, this article is about why the last bubble popped and why this “Rally” hasn’t yet begun.
In his article titled Bitcoin Analysis Bubbles of the Past and Future by CCN author Joris De Ruiter, the author argues that every bubble gets smaller and that this may be a signal that Bitcoin is becoming more viable as an economic vehicle. I tend to follow this line of thinking but diverge at the idea that Bitcoin won’t have another parabolic rise. The 2013-2014 bubble had many contributing factors pulling support in many different directions, here are a few factors (mostly overlooked)
This is often overlooked and even less discussed but, I feel this has to be addressed. The beginning of a real industry producing actual products to facilitate it is an amazing thing. Companies like Bitmain and Bitfury have done very well and have contributed to the boom in the Bitcoin Sphere.
We all know China got involved in Bitcoin during this time span but why? I feel that it was due to the fact that these ASIC miners were being manufactured by Chinese companies, who were in the position to see the full potential of the new commodity, Think about it if you were a manufacturer, and this new economic vehicle fell into your lap, wouldn’t you run with it?
WHAT DOGE …….. SERIOUSLY? The short answer is YES. Dogecoin was without a doubt the most successful altcoin launched in 2013, and it was many enthusiasts “gateway” into Bitcoin. Doge was so darn cute you couldn’t help but like it. With a motto of “Such Currency” it literally spoke the language of internet geeks and blasted it to a $60,000,000 USD Market cap on Jan 31, 2014 . One time at the zoo while I was wearing my “Bitcoin Millionaire” tee-shirt a high school student of about 16 years asked me “do you know about DOGE” I was tickled pink and was glad to offer my opinions on the coin.
While this was a black mark on Bitcoin, the dubious trading policies of this now defunct exchange contributed to the bubble and even more so to the burst of the bubble. I’d like to say this is a thing of the past but another Mt. Gox may be on the horizon at Cryptsy.com (I will not go into this here)
Of course, it did. The reason is simple while traders and technology professionals were on board, the rest of the world didn’t even take a look at Bitcoin. Just like any other economic movement when your base quits growing the bubble bursts. So in the period of 2014-2015, we saw bitcoin decrease in value about 80% reaching a low of $177 USD on Jan 14, 2015. Just as doomsayers were touting the death of bitcoin the real rally was brewing, and this time, there will be no bubble.
Now we sit on the verge of actualization. It’s a bold statement I know but, I can back it up. 2015 saw the emphasis move away from the coin itself and into the underlying technology or “BLOCKCHAIN” and we have seen massive investment into the technology. There has been so much news coming in on this that it is hard to grasp the meaning of it all. I will start at home in the U.S.A. with what I think is the biggest news ever:
This is simply amazing – if you don’t know a commodity is a “raw material or primary agricultural product that can be bought and sold” says Google. Simply put Bitcoin enjoys the same classification as gold and silver. What this means is bitcoin is no longer a currency but is in fact, MONEY. The difference between money and currency is: Money has a real value that can’t be manipulated. Whereas Currency has a perceived value that is backed by confidence.
You heard it right. From its start as a counter movement against the financial elite, Bitcoin is now being backed by the same people it was designed to destroy. In an article titled: Nine of World’s Biggest Banks Join to Form Blockchain Partnership, the author states that the biggest banks (including JP Morgan, UBS) are investing in blockchain technology. While the article focuses on the “Settlement power” of the blockchain, the interest from these major players cannot be ignored.
The CEO of Overstock.com (arguably the largest retailer supporting bitcoin) has plans to revolutionize the stock market using the blockchain. In his article titled: Blockchain Project Sees 3 Million Spend From Overstock author Samburaj Das describes how Byrne will spend over $8 million dollars developing its tØ Platform which allows for instant settlements of borrowed assets on the blockchain. All this leads to NASDAQ making the first ever trade of securities using blockchain technology on December 31, 2015 on its Linq platform
I could list over 100 more similar stories supporting my argument but I think you see the picture by now.
A Bright FUTURE
Whether it’s the blockchain or the coin the new interest in Bitcoin is coming from outside the community, this is a fact. This time, it’s bringing Government Banks and Fortune 500 companies with it. Bitcoin may have had its ups and downs but this time “It ain’t no bubble” and you can take that to the bank. LITERALLY!
Featured image from Shutterstock.
Last modified: January 25, 2020 11:16 PM UTC