The History of Rising and Fall of Bitcoin

March 27, 2022March 27, 2022 gccexchange 0 Comment

It is difficult to predict the future of Bitcoin and other digital currencies. It is possible that such a large and active market for Bitcoin might create some unforeseen consequences. This is especially so if there are defects in the bitcoin algorithm or with the technology as a whole. On the other hand, it may be that predictions about the future are not far-reaching or dependent on precise data. That said, it is important to remember that no prediction ever comes without risk, so even if Satoshi Nakamoto does not exist, people all around the world will look up his name and explore what he could mean when he wrote: “The community must always be there to help each other.”

The History of Rising and Fall

The bitcoin bubble started to form in May 2017 when the price doubled in a month and from May to December the prices surged by more than 700%. It reached an all-time high in December 2017 hitting $19,783 and after the bubble burst the prices slashed by more than 50%.

There has been a downfall previously when in June 2011 it reached a high of $31.91 and then the prices slashed by more than 93% in November 2011 hitting $1.99. Again in November 2013, there was a surge of approximately 590% when the prices went to $1,165.89 from $198.23 and dropped to $344.24 by April 2014.

There are enormous reasons for the rise and fall in the prices like the raid on the Binance exchange, Google’s announcement of the ban on cryptocurrency advertisement, news about China and South Korea banning cryptocurrency exchanges. Scams, money laundering, hacks, speculation, and the hype created by the media also lead to price fluctuation.

Moreover, the total number of bitcoin created will be limited to 21 million which makes it scarce. As demand and supply play a major role in the price fluctuation, a limited supply of against a huge demand will lead to price fluctuation on the higher side.

One of the events that lead to a fall in prices is the Mt Gox hack in February 2014. Mt Gox was the largest bitcoin exchange in the world and handled over 70% of bitcoin transactions worldwide. Mt. Gox lost 844,408 bitcoins out of which 200,000 bitcoins were recovered, but there was no trace of the remaining 650,000 bitcoins.

Japan was the first nation to regulate bitcoin and treat it the same way as Yen. Japan has become the highest bitcoin trading country in the world. The country also has more than 200,000 stores that accept bitcoin. Regulating bitcoin in more countries is one factor that can affect the prices as real-world usage would increase.

On the other hand, some countries like Dubai and Venezuela have their own cryptocurrency while others like Japan, Estonia, and Sweden have planned to launch their cryptocurrency. As more and more countries introduce their cryptocurrency, the competition against bitcoin will be higher which will affect the demand and price volatility. A country’s own cryptocurrency would be more trusted and encouraged for investment and as such the scope of popularity for random cryptocurrency would reduce.

There are far more superior cryptocurrencies than bitcoin prime in the market when it comes to technology, speed, and safety. The only fact that bitcoin stands at the top position is the highest number of users and hash rate. But as more and more crypto are switching to proof of stake, the scenario ought to change.

Here are some predictions from Analysts, Entrepreneurs, and influential Entities on Bitcoin price:

“It will reach $200,000 by 2020 as more and more people are using the network.”