Bitcoin has recently hit an all-time high of $1270 during March 3rd which is about $148 difference from previous highs in 2013 ($1122). Yet, according to financial ‘experts’ Bitcoin has died over a hundred times, mainstream news outlets have published some negative reports on Bitcoin with titles such as “Bitcoin Is Unsustainable” or “Where did Bitcoin go wrong”. You know what, I can understand why people could worry, I mean after all Mt. Gox (leading bitcoin exchange) lost up to $450m (USD) due to a vulnerability flaw within its security protocols. This ended up leaving a lot of users with losses due to the exploit. Because of that, it was very easy for future investors to lose sight on what made Bitcoin so amazing. During the massive dip in December of 2013, a lot of experts started to assume that Bitcoin was dead. Though, if you take a look at the bigger picture without any biased opinions, you can see that Bitcoin was still growing strong.
After the massive spike that took Bitcoins price to $1122 in 2013, bitcoins blockchain saw an excessive amount of growth even though the price was still declining. Retailers such as Microsoft and Expedia started accepting bitcoin as an option of payment for online shopping.
“Virtual Currencies may hold long-term promise, particularly if the innovations promote a faster, more secure and more efficient payment system.”
With people like Ben Bernanke seeing the ultimate value in Blockchain technology, we also start to hear people like Bill Gates, the founder of the world’s largest PC software company — also see’s the value with the currency and it’s technology on todays society…
“Bitcoin is exciting because it shows how cheap it can be. Bitcoin is better than the currency in that you don’t have to be physically in the same place and, of course, for large transactions, currency can get pretty inconvenient.”
These are just a few people who stood by Bitcoin even during it’s ‘death bed’.
When we take a step back and look at the last few years in Bitcoins price history and compare it to other global currencies — Bitcoin was the top-performing currency in 2015 by a landslide of 35% increases!
Though, if we dive into the numbers, during the decline in 2014, Bitcoins total trading volume went from $15b to $25b, a massive increase of 66%.
While Venture Capital funds increased 488%, $100m to $488m, (Just in 2016 we saw $1.1 billion dollars go through VC funding). The number of countries with VC investment funds in Bitcoin start-ups went from 8 to 18. The number of Bitcoin wallets skyrocketed from two million to eight million. While the number of transactions on the network went from 54,000 to just over 150,000 per day. Merchants adopting Bitcoin as a way to accepting payments went from 14,000 to 45,000– a 200% increase. As this all seem impressive, the most impressive thing of all is that the mining power behind the network has gone from 10,000TH/s to 300,000TH/s. That’s an increase of 3,000%. In just a small window, you can see the amount of success Bitcoin has had despite all the negative press that is currently circulating around mainstream media.
With Bitcoin becoming more popular and easier to access. Even though the growth metrics are only from 2014. There are still several reasons why one should remain positive about Bitcoin and it’s future for 2017 and onward.
Bitcoin’s protocol went through a halving in July of 2016. This happens once every four years. New coins that are being created by the network get cut in half until there are none left (reduced supply).
While Peoples Bank of China withers the value of the Yuan, Chinese citizens look for ways to hedge out of their currency. This will continue to lead to a large increase in demand for Bitcoin in China.
Bitcoin is a way for citizens that live in certain country’s experiencing hyperinflation to opt out. For example, Venezuelan Bitcoin volume is up 1200% over the last six months. People are even using the currency to buy groceries through Amazon vendors because no one will take the Bolivar as a form of payment since it’s basically worthless.
Bitcoin will continue to see a massive increase in growth and blockchain innovation over the next few years. It’s also worth to note that Bitcoin is something different to everyone. Some people, it removes the pain of transferring money overseas and dealing with outrageous fees. Or a way to hedge their way around hyperinflation within their countries central banks and governments. The next time you hear that Bitcoin is dead, or that Bitcoin is a ‘tulip’, you might want to check your facts. Because it could likely be a good time to buy.
