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Bitcoin (BTC) ‘I Told You So’ At All Time High

Bitcoin (BTC), Cryptocurrency–Not much has changed in a year.

While the price of BTC has slipped precipitously since ending 2017 trading near $20,000, the industry of cryptocurrency has remained as polarizing as ever. Throughout the bullish run that characterized last year, economists, financial reporters and Wall Street moguls continued to point out the flaws of the number one cryptocurrency by market capitalization. Ranging from the dangers of deflationary currencies to the extreme price volatility of the crypto markets, Bitcoin had no shortage of detractors who attempted to steer away investors even during the height of price appreciation.

Rather than focusing on growth through adoption, educating a population on a novel technology or establishing legitimate uses that extending beyond “digital money,” the narrative surrounding Bitcoin and cryptocurrency became one of greed and confusion. The relentless media cycle at the end of 2017 fluctuated between arrogant perplexity and annoyed FOMO, with early crypto adopters being hailed as visionary innovators or just plain lucky depending who you asked. The water cooler conversation for crypto made an abrupt change from “What is Bitcoin?” to “How can I get rich?”

The end result, which should have been predictable from a standpoint of a nascent industry, was over-inflation of value and even greater expectations. The bull run to end 2017 and extend into the first weeks of January was built upon investors who felt fearless in their decisions, not taking the time to learn about Bitcoin, cryptocurrency or the extensive altcoin market–including a litany of ICOs that would prove disastrous over the year. A white paper and a promise was enough to drive billion dollar valuations, with most investors simply looking for the next coin of the day to get pumped on exchanges.

As opposed to the organic growth that most technology needs to establish itself in the mind of Main Street, Bitcoin became the unfortunate recipient of overextending expectations. Investors  bought into crypto with not just the expectation of asset-appreciation but ludicrous overnight wealth to be obtained. Few asked where the technology was at in terms of development, and why certain barriers to scale–such as transaction fees and speeds–would still be months and years away from being solved.

The market collapse that followed in January and February, extending into the final month of the year with Bitcoin and altcoins hitting their relative low, has brought out a host of schadenfreude, with nearly every economist and analyst waiting to cast stones at the industry of crypto and the investors who bought in during the fall. For most in the industry of crypto, the financial narrative is producing an ongoing annoyance, with Bitcoin having been proclaimed “dead” many times before. But the overtone being applied to the more recent articles on Bitcoin’s demise is one filled with glee over the failure.

While some take pleasure in painting Bitcoin as the greatest bubble in history that finally popped, it’s becoming increasingly hard to take serious the opinions of financial professionals and experts who are allowing their emotional sides color their analysis. Somehow, Bitcoin transformed into as much an ideology as a technology, one that detractors feel compelled to stamp down upon to the extent of being irrational.

If anything, that might be all the indication supporters of Bitcoin need to find continued hope in the future of the currency.

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Bitcoin (BTC) Losses in November Worst in 7 Years

Bitcoin (BTC), Cryptocurrency–With Bitcoin again slipping below $4000, the market of cryptocurrency is continuing the bear trend into the final month of the year.

After several months of low price volatility, where the fluctuation in value for the number one cryptocurrency by market cap dropped below that of tech stocks, it appeared that the crypto markets were going to make an eventful upward turn in November. Part of the influx of investment was driven by Bitcoin Cash, as buyers anticipated the minting of new coins following its hard fork on November 15.

However, the opposite occurred, with the coin plummeting in value in the hours leading up to the split and dragging most of the market with it. Instead of providing a resurgence to market prices, the forking of Bitcoin Cash into Bitcoin ABC and SV created a strong degree of investor uncertainty which in turn led to falling prices. The two camps, helmed by crypto figureheads Roger Ver and Craig Wright, created an all out “hash war,” which drew the wrong kind of attention for crypto and led to a general fire sale for the market.

Bitcoin plummeted alongside altcoins, and nearly $100 billion was wiped from the market capitalization in less than two weeks. While BTC watched a steady erosion in price throughout 2018, falling from an all time high of $20,000 at the end of last year to its stable trading point around $6500, the bottom fell out for the currency. Bitcoin dropped further to $3500, with nearly all analysts predicting a bleak outlook for the recovery of cryptocurrency prices that could continue into next year–and possibly beyond.

As reported by Bloomberg, the most recent price fall for Bitcoin was as bleak as it appeared to investors, with November constituting the worst month for BTC in the last seven years. While investors were flush in the midst of a bull run for Bitcoin at this time a year ago, November saw the currency drop 37 percent to a relative low for 2018, which constitutes the biggest loss since August 2011 when BTC fell 39 percent to $8.90. As previously reported by EWN, billionaire investor Mike Novogratz of Galaxy Digital Holdings admitted to the steep drop in valuation for cryptos and his crypto-based fund. Speaking in a conference call on November 30, Novogratz made no attempt to sugar coat the situation,

“It’s been a horrible bear market in tokens.”

However, as prices continue to find shaky ground in their lowest trading range of the year, general enthusiasts for cryptocurrency continue to find developments to be excited for, in addition to the catalyzing work of some development teams. Last week, EWN reported on a commitment by the TRON Foundation, makers of the TRX currency, to pay out $100 million over three years to spur innovation and creation of blockchain gaming for their network.

As token prices continue to cause headaches for long-term investors, adoption and blockchain growth is a positive for cryptocurrency advocates to hang their hat upon. While Novogratz, a long time Bitcoin and crypto bull, admitted defeat in 2018, even he pointed out that bubbling adoption today could lead to big moves–including institutionally backed investments–in 2019 and 2020.

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