From $1 = 1,309.03 BTC to $19,000+ all the way Back Down
Since this is our first post, we are going to start with what started it all, Bitcoin. Bitcoin has been around since 2009. It launched itself into the mainstream spotlight when it started closing in on the price of almost $20,00 for one BTC. Since those all time highs, the price of Bitcoin has been on a decline. Many say this is to be expected because they do not see the value in BTC and cryptocurrency in general and see no future in it. Some see the death of the market on the horizon, so does this really mean Bitcoin will die?
Any Crypto enthusiast will tell you “NO, the bull move is coming!” or “*insert cryptocurrency here* is going to the moon soon! Just HODL!”. This alone will not be enough for the average consumer on the fence, to determine whether Bitcoin or cryptocurrency is something they would be willing to get into. We here at Cryptocation believe that BTC is here to stay. We aim to provide more than just price speculation, but active news and information about innovation, adoption about the mainstream, and movements going on in the crypto tech world. Hopefully we can help you see this is more than just a fad going on in the tech world right now.
First reason, “every market has its downs”. Even the most successful companies in the world get caught in a downward market. Stock traders often call stocks “overbought” or “oversold”, this refers to when a stock has had too many buyers or too many sellers. A stock’s price will often correct itself to a price where it will attract more buyers or the holders of the stock will sell to make their profits. Bitcoin and crypto are no different from these markets. Many believed that the price of $19,000+ a Bitcoin was highly over priced, so this down turn is seen by many as a correction. Many say the price will correct itself and head back up to its highs. BTC’s price drop has however been a lot steeper than most stocks and that will definitely scare some.
Second, BTC’s continued growth. Even in this downward market, BTC’s overall growth is still heading in an upward trend if you look at it year to year. If you ignored the yearly highs in price and looked at its yearly lows it might surprise you. This was a post from a twitter user that helped shed some light on the overall growth of BTC. This was a post from a twitter user that
mapped out the growth of BTC while looking at its lowest price each year. BTC showed steady gains almost each year despite its high price fluctuation each year. It also has out preformed almost every stock in the traditional markets, without institutional money being poured into it. These are all great things to consider if you want to compare it against the regulated markets. As always though, past performance does not guarantee future performance.
These brings us to the final reason, which is what many believe the real meat of why Bitcoin and crypto have been changing the tech world. BTC is based on a technology called the blockchain. Blockchain and all the potential it holds is the foundation for all the buzz around BTC and cryptocurrencies like it. This new technology is the excitement behind the cryptoworld, it is an open ledger to check and verify transactions between two parties. Peer-to-peer interaction across the internet. Since the ledger is open everyone sees the transaction history in the from of “wallet addresses” that need a private key to be accessed. “Nodes” carry that history and come to a consensus to the accuracy of this ledger. Very block in the chain is linked so the history of the chain is actively recorded, all the way back to the genesis block. If someone were to attempt to change a block within the chain it must be verified against the open ledger, and against every node on the network. Changing the history in one area would not account for all the other nodes on the network, and that is a complicated task to accomplish. Innovations go beyond just “digital cash” appliances to. Blockchain can be used to track medical records, record votes for an election ballet, manage smart contracts, and track groceries all the way from farm to grocery store. New uses are being developed everyday! This is were many believe the true value of Bitcoin, cryptocurrency, and Blockchain truly resides. We hope to bring you this value through our blog on a regular basis.
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