March 15, 2021 | AtoZ Markets – Crypto is still very much the new kid on the currency block, but Bitcoin is undoubtedly the undefeated leader of the pack. Taking center stage for almost 13 years the digital asset has certainly put on some show stopping performances. Since its inception we have seen some award-winning ups followed by catastrophic lows, but that is just something that adds to the excitement.
The Bitcoin community is full of fads and revolts alike from thousands of articles circulating in an attempt to “unmask the mysterious creator” and real and unrealistic price predictions, to “Bitcoin is Dead” ringing in our heads, whatever the drama the evolution that unfolds keeps our eyes glued to the market. So, sit tight as we take you through the story of Bitcoin thus far.
The BTC Throwback
Launched in 2008 by the alias Satoshi Nakamoto, whose identity is probably one of the biggest mysteries of the past decade. Since, we have seen many competitors emerge, such as Ethereum, XRP, Litecoin and ChainLink but we are yet to see one triumph against the crypto. It was in 2010 that the first BTC transaction took place when LaszioHanyecz paid 10,000 BTC for 2 pizzas, factoring in today’s price those two pizzas would have cost over €400 million.
Price fluctuations and volatility are the name of the crypto game and the market is not impartial to unique crashes. We can think of 3 in BTC’s short history. 2011 being the first instance where the price jumped from $1 to $32 from April to June (a gain of 3200%). The steep ascend was followed by a staggering 93% price drop and sending waves across the market. This crash was primarily down to low adoption. The next two years where more positive but then 2013, a year of sharp drops followed by equally sharp increases.
After years of consistent growth 2017 brought new records as BTC soared past $19,000, but the enthusiasm was short lived and in early 2008 the crypto had dropped to below $4,000, a year that will go down in the memory books. By May, the following year it peaked to above $10,000 and had been flirting in the support range of $10k-$12k for the best part of 18 months. Then came December 2020 when a surge past $20k for the first time in 3 years, but it didn’t stop there. The 2021 Grammy Award goes to none other than the king of crypto, BTC, with new Aths of $55,000 (Approx. €45,000) and a rally that doesn’t seem to be stopping. BTC is known to surpass all-time highs after a crash time and time again so there is no reason to think that it won’t again.
Boosting Widespread Adoption of BTC
Once seen as only a volatile trading asset, BTC has begun to gain momentum through a different narrative, that is as a store of value and a hedge against inflation. February 2021 saw a swarm of interest from moguls such as Elon Musk and other institutional market players.
Tesla’s pledge to invest $1.5bn sent the world into a frenzy. An investment that in just one month returned $725 million. Musk has been a vocal point in the crypto community in 2021 and it’s no surprise why. His string of anarchy could open the floodgates for other Fortune 500 companies to follow suit. However, he wasn’t the first to kick off the interest. In August last year MicroStrategy’s bid to buy $250 million worth of BTC got the ball rolling and widespread acceptance of the digital asset has been gaining ground. PayPal, Square, Blackrock all among the big players making moves into Bitcoin.
So, who will be next?
Speculation abounds that it could be Amazon. With CEO Jeff Bezos stepping down and crypto enthusiast Andy Jassy taking the hot seat this could leave the door wide open. Amazon would only mean great things for BTC. If people can spend their Bitcoin on a major retailer such as Amazon, they will pretty much have access to purchase anything they want. This could be a game-changer eradicating and critics that believe there isn’t enough places to spend BTC for it to become a mainstream asset. Also, this will help it be viewed as more of a long-term store of value. Amazon has changed the way we shop online and BTC has changed the way I which we transact, marry them together and you could have the perfect love story.
A Look Into the Future
Nobody can predict the future of Bitcoin, there are many factors that can determine price. Irrespective of frauds and country bans, the crypto has established itself as an “icon” in the currency world. At the very beginning investors failed to give it the attention it so rightly deserved. Valued at €0.05 in 2010 nobody could have predicted that it would turn out to be the most profitable investment of the last 12 years.
A period that has seen increased interest from large retail players and financial institutions alike. As the digital asset grows popularity will follow. There is no denying that it is an idyllic means of value for the future. Not only among individuals but also for growing industries. As things like AI and IOT mature so will crypto. These innovations will bring a new way of life and no doubt will involve some form of digital transaction.
Either way we are excited to see what the future holds. Interested in knowing why BTC is here to stay read here.
Bitcoin has been the most exemplary innovation of the ages. Although some might say it is in its infancy, but just over a decade on and BTC has overcome many peaks and troughs. Defeating the odds and coming out stronger each and everytime. Proof, if necessary that the digital asset is going nowhere and will be staple in the future of finance. It took BTC just 12 years to reach a market cap of $1 trillion, in comparison to Google who took 22 years and Microsoft 45 years. Do you really want to miss out on this rapid growth? Step into the future, buy Bitcoin today and be part of the evolution as it continues to unfold.