The date was 17 December 2017, when Bitcoin hit the news all over the world. Its BTC to USD rate was skyrocketing for several months in a row — from $4,336 on October 1, to $6,427 on November 1, and to an astronomical price of $19,783 by December 17. However, the excitement around Bitcoin hitting all-time highs was short-term. Despite a few other peaks at the end of December and the start of January, by February 6th it had slumped back to $6,329.
Bitcoin now, in 2019, is at the $8,200 mark and there has been a slight recovery and the next price drop recently. This is nowhere near enough to make it look as though Bitcoin’s going to get back to that near-$20,000 figure. Bitcoin has a long way to go in order to bounce to that point, but if it keeps increasing, then we could see it reach that value over time.
How can it bounce back?
Bitcoin wants to carry on being the coin of choice for investors who are looking to make their move into the cryptocurrency market. It has already been like that so far and will likely continue to lead the way. Bitcoin is a great coin in many respects, but there are a lot of challenges out there as well.
There are many reasons why people will want to use Bitcoin and if those reasons continue to be valid, then there’s no doubt that its price will keep increasing. These reasons include:
- A lot of people are now looking for protection against traditional banks and opt for alternatives to regular money. Bitcoin is one such alternative.
- A few cryptocurrencies have strengthened on the back of partnerships or associations with other companies and Bitcoin is doing the same. A number of companies are happy to accept Bitcoin as a payment already, which has helped to boost Bitcoin’s brand.
- There are firms like BlackRock indicating their willingness to invest in Bitcoin. They have previously stated that they were reluctant to support the cryptocurrency due to a number of issues but have recently changed their tune.
It seems to be a common theme with Bitcoin and cryptocurrency that it gets more accepted as it gets more understood. Due to this trend, you can see crypto coins being more attractive to investors as they are starting to understand what the cryptocurrency is and how it works.
What are the challenges?
There are a lot of aspects that are going to affect the overall cryptocurrency market. All utility coins should see a boost in price over the years as the increase in acceptance comes to fruition. When it does so, Bitcoin could still be the leader, but it might then be left behind.
There are many cryptocurrencies which offer alternatives to Bitcoin and aim to surpass it over time. The two biggest rivals in this respect are fairly obvious – XRP and Ether. They are two clear examples of coins which do things a lot differently to Bitcoin. Ethereum has such advantages as the ability to offer smart contract transactions, and XRP can support payments that are much faster and cheaper than Bitcoin’s.
If we’re going to see a day when cryptocurrency is used similarly to how debit card payments are used today, then it’s not going to be Bitcoin due to its scalability issues, low network speeds and high transaction costs. At this stage, Bitcoin could still be a store of value and used by many as a virtual bank. It can be difficult to predict the future of Bitcoin and the future of cryptocurrency in general, but it is easy to follow the news and make smart decisions based on it.
Is the long-term picture good or bad?
There are also many other rivals such as Stellar Lumens, Monero and Dash, which all offer something unique, and you never know which coin is going to catch on next. Bitcoin, though, has its branding, which is still a powerful tool. It’s instantly recognized by many, and that will keep up its strength for a long time.
Bitcoin had ridden the crest of the initial wave of hysteria about cryptocurrency before it came crashing back down. There are likely to be more waves to come, and Bitcoin has to make sure that it remains the cryptocurrency of choice for investors.
Will it get its strength back?
Will it get back to near-$20,000 and beyond? Well, that depends on the ‘how’ and ‘when’. It’s unlikely to reach that figure in the next few months as it was such a crazy high to hit.
If Bitcoin can keep its status as the most attractive coin to invest in, then its price will surely rise over time. People are starting to understand more and more about what Bitcoin is, how it works and where you can buy it. The level of awareness will only increase as the years go by, which will open it up to even more investors.
Bitcoin might well regain its strength, but like an athlete who has suffered a bad injury, it’s going to take a lot of hard work, time and patience.