History of 2017 prices
Bitcoin started off this year with the price of just under $1,000 with January being a very uncertain time for the Bitcoin due to the lack of adaptation of the Bitcoin by financial institutes. Governments added fuel to the fire by voicing negative opinions about a coin they could not control. Particularly traditional financial dinosaurs who simply did not understand this new concept were especially against it as it was still largely seen as a niche investment as opposed to a mainstream investment such as stocks in companies or fiat based currencies. This lead to the Bitcoin coming close to breaking the $1,000 mark several times before being knocked back down, but then in February the 2nd something spectacular happened as it surpassed the $1,000 mark. Celebrations were short lived as faced further criticism with critics calling it “overpriced” or an “impeding bubble waiting to be burst”, even Vicky Lingham, the CEO of Civic which is a blockchain based company stated it was overpriced.
With such criticism the Bitcoin struggled to break the $1,300 mark as novice traders were buying into the FUD (Fear, uncertainty and doubt) Wall Street was peddling at that time, lets face it, no one wants to be stuck with an overpriced product or even an overpriced stock. Many were waiting for the “major price correction” or even the bubble to burst before trying to profit from it, something that never came. Thus further increasing investor confidence in the coin which eventually lead to it surpassing the $1,300 mark on April the 27th and propelling it at an extremely fast pace to reach just under $3,000 mark on June the 6th, thus marking the era of the Bitcoin rocket.
But then we saw the Bitcoin’s price dramatically decrease after reaching the $3,000 mark, with Bitcoin critics coming out of their caves once again. One of such critics, billionaire Mark Cuban stated the Bitcoin is a bubble that would collapse but still backed blockchain technology, stating it would be the future. Things were made worse when Governments came out against the Bitcoin, such as the Romanian Government which stated virtual currencies such as the Bitcoin were unsafe and volatile. But worse was yet to come with regulations on ICO’s being announced, thus damaging the digital currencies reputation with several high profile scams that used ICO’s coming to light. In turn further fueling fears of an imminent collapse which knocked down its price further to just over $1,900 in July the 16th.
However less than one month later, Bitcoin increased in value spectacularly once again, going from $1930 to $4425 in just under a month. Bitcoin’s resilience was becoming clear and fears of it being overpriced and a bubble being put to bed. However in September the Chinese Government announced regulations on the Bitcoin which once again lead to the Bitcoin being challenged, matters were made worse for the Bitcoin when Jamie Dimon, head of JPMorgan called the Bitcoin a fraud, eventually leading it to drop to the $3200 mark on September the 14th. However a day later it began its recovery and went onto reaching $7,458 when it became obvious that the regulations would have minimum impact on the coin itself due to it being a cryptocurrency.
The last such challenge the Bitcoin faced was when the highly anticipated SegWit2x fork was cancelled and backers of Bitcoin cash who had been planning for this scenario began spreading false rumors to state Bitcoin developers and backers were moving to the Bitcoin cash. This lead the Bitcoin to nose dive from the $7,500 mark to just above the $5,800. Thus further challenging the Bitcoin’s legitimacy and place in the World with individuals such as Roger Ver and Jihan Wu pledging backing for the Bitcoin cash. A leaked e-mail written months before the event predicted the events in specific detail showed the plot to overthrow the Bitcoin. However it did not go the way Bitcoin cash backers planned it to go with the majority of the community rebuking the Bitcoin cash plot and even boycotting them.
Why Bitcoin reached $10,000 and will go on to make further highs
Despite all the struggles the Bitcoin faced, it still bounced back and went onto make 1000% gains this year alone. All the challenges the Bitcoin faced it managed to shrug off, something a bubble would never have been able to do, showing the Bitcoin has committed backing and support. The myth about it being a bubble has itself been burst, with even Bitcoin’s harshest critics, including JPMorgan now dealing in the coin and offering it to their customers.
Openly stating support on Wall Street for the Bitcoin was seen as a death sentence for prospective investors but now many Wall Street based firms are proud to show that part of what they invest is in Bitcoin, to show it is an evolving firm that evolves with the ever changing financial World. It is not just financial institutes that are embracing the Bitcoin but also Governments that are placing and investing in the relevant financial infrastructure to use it in the future. Who knows that the future holds for the Bitcoin, $10,000 just seems like the beginning with the majority of investors stating they would not even consider selling their Bitcoins before the $190,000 mark. It seems like the Bitcoin isn’t going out of business anytime soon.