“To the moon!” or when will Bitcoin price burst?

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“To the moon!” or when will Bitcoin price burst?
2019-01-10 in CRYPTOPEDIA

Analysts from different spheres can find an explanation for any trend in retrospect and state that they were “initially right” in their predictions. This is how myths are created about people who can predict crises based on their expert knowledge. The same people, by the way, claimed thousands of times that Bitcoin will collapse very soon, but in the end, the first cryptocurrency survived stressful situations and reached new heights. We are not only talking about price peaks, but also about the development of the protocol and infrastructure. Bitcoin has shown that, despite significant pressure and a rather hostile environment, it overcomes crises. Many developers consider the bear market an ideal period for the active implementation of updates, since, to put it in the words of the founder of the venture capital firm Morgan Creek Anthony Pompiano, fewer and fewer “tourists” get in the way.

Why wasn’t there “to the moon” in 2018? Probably, we can agree that the bull market cannot last forever, and the good times will eventually arrive. Many prominent members of the community generally believe that the greed of people overheated the market. Bitcoin is attracting the attention of regulators and scammers. We need a gradual development of the cryptocurrency market. The desire to destroy the vicious system after 2008 did not last long, because the collective memory is short-lived.

Blockchain Capital partner Spencer Bogart is sure that Bitcoin has almost reached the bottom at the end of 2018, which means the growth phase is very close. It seems that venture investor Tim Draper doesn’t worry about the current stagnation at all: he is convinced that over the next 15 years the market capitalization of cryptocurrency will reach 80 trillion US dollars.

The situation in the markets is periodically repeated and this can be found both in local laws on price charts and in long macroeconomic cycles. The fluctuations of economic activity in the form of spirals consisting of downturns and rises, were described in the late XIX – first half of the XX centuries.

The reason for the emergence of cycles in the economy can be different circumstances: the emergence of new technologies, changes in prices for raw materials, force majeure situations, seasonal factors, unemployment, and much more. Regardless of these variables, all economic cycles have a similar structure and consist of the following phases:

  • rise (recovery, expansion)
  • peak (highest point of economic recovery)
  • recession (recession, crisis)
  • bottom (depression)

Cyclicity is a form of progressive development. Therefore, despite the change of phases, a long-term growth trend is typical.

During the collapse of the market in 2018, many inexperienced investors at some point believed that Bitcoin would not be able to avoid the “death spiral” and fall to zero. Some of the arguments associated primarily with the consistent fall in prices and hashrate – the price falls, miners are turned off, the rest immediately sell the mined to cover costs, the price falls – may seem quite logical.

In this regard, it is worth remembering that Bitcoin and the cryptocurrency market is full of retail investors, encryption, anarchists, large companies and venture investors, who, despite the general panic, were quite active this year.

A kind of establishment of the industry is the Digital Currency Group (DCG) Barry Silbert, which somehow owns shares in the largest cryptocurrency investment companies, exchanges, manufacturers of hardware wallets and even Ripple.

Coinbase, which has attracted investment from Silbert, has now acquired its own popularity, managing various funds and developing popular protocols. Coinbase and DCG are actively lobbying for the interests of the industry in Washington, and the first is expanding the listing, conducting geographical expansion and buying shares in promising start-ups, acting according to the Rockefeller principle: “buy while blood is flowing”.

And while the majority of users make chaotic decisions, they do not understand and cannot explain what the value of Bitcoin is, while many businesses in the industry lose their nerves, someone is building a real empire. Would they build it if they were afraid that Bitcoin would cease to exist?

CRYPTOCURRENCIES
  • bitcoinBitcoin$3,903.21
  • ethereumEthereum$136.98
  • rippleXRP$0.311155
  • tetherTether$1.00
  • eosEOS$3.73
  • stellarStellar$0.087536
  • litecoinLitecoin$56.07
  • cardanoCardano$0.042950
  • tronTRON$0.022621
  • moneroMonero$48.67
  • iotaIOTA$0.278096
  • nemNEM$0.041960
  • dashDash$80.50
  • neoNEO$9.00
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