It seems ridiculous now that analysts had predicted that Bitcoin would soon be worth more than $60,000 a pop. Things have changed so much since then that it doesn’t seem like we’re in the same universe. Everyone thought that Bitcoin and every other crypto-currency had been doing extremely well. Instead of seeing improvement, the crypto-currency market almost consistently went on a decline. Things like this make us wonder what the future of the industry is since crypto-currencies have already dented the graphics processor market a bit.
If the situation remains like this, the GPU industry and the crypto-mining sector as a whole could be in for some serious trouble. The volatility that crypto-currencies keep showing have robbed them of any trust that users had in them, and while they have more upsides than we can count, they’re relatively useless as a currency since they’ve repeatedly failed to hold their value. If fiat currency behaved like Bitcoin, the world would be neck deep in pure chaos. To understand why this matters so much, we’ll have to delve deeper into the industry and its history, and that way, you’ll know what to do if you’re a Bitcoin enthusiast or someone looking to invest in it.
A Short History Lesson On Bitcoin
When Bitcoin first started out, only tech hipsters knew about it and what it had to offer. The rest of the world didn’t know and didn’t care enough to take advantage of it. Bitcoin started out as a new trend that hippies were religiously following. Only people who had a head start into the game and knew a thing or two about how currency worked and how block-chain technology functioned were able to correctly predict the vast power that was about to become of Bitcoin. As time drew on, news outlets and tech blogs began covering the block-chain and crypto-currencies, and the first wave of public interest began to sweep Bitcoin.
Most of the world still ignored it, however, with analysts being skeptical about the power it wielded. As Bitcoin’s price rose from the tens to the hundreds, more and more people began to show interest and started investing and mining. From that point, Bitcoin’s price went all the way up to a thousand, but soon enough, its value took a steep dive, and people forgot about it again. However, it started rising soon after, and this time, it would take the world by storm because the prices showed no signs of dropping or slowing down at all. In one of the most spectacular shows in all of history, a single Bitcoin, which had been valued less than a dollar in 2010, was worth a whopping 17,000 dollars by December 15, 2017, and that made the world sit up, listen, and learn everything about crypto-currency.
Two days later, Bitcoin’s value reached an astounding $19,783! Just when everyone thought that things were finally looking up, it lost one-third of its original value just five days later, leaving people gobsmacked and confused. For reasons that are fairly muddled, Bitcoin’s bubble burst, and it lost more than half its value within two months. Since then, the value of Bitcoin has been steadily going downhill. By the time it celebrated its 10-year anniversary on October 2018, one Bitcoin was valued at $6,300.
In the beginning, Bitcoin showed a lot of promise. The emergence of numerous other crypto-currencies proved that it could be a profitable market. When crypto-currencies rose so much back in 2017, people weren’t aware of the fact that such a drop was even possible. Many were brainwashed into thinking that it was the best way to rake in easy money which it was undoubtedly. A simple mining kit was able to pay itself off within months, after which owners could make thousands of dollars. This has all changed, and with the recent unexpected drop, Bitcoin will have to go through a massive identity change if it wants to rise again. For now, it cannot regain the public’s trust like it did last time which it needs in order to thrive.
Because of Bitcoin’s erratic nature, it’s definitely a big risk if you’re planning to venture into this market. In recent news, Bitcoin once more tumbles deeper into the abyss with a value of $3,615.08. Who knows how much it will be worth in one month? A year? From what we can see in the history of Bitcoin, and other crypto-currencies for that matter, the possibility of its decline is greater. It’s a dangerous gamble, but the choice is yours.