Exactly three years ago, Bitcoin (BTC) reached its all-time high price, about $ 20,000. Today, it broke the previous record by exceeding 23 thousand dollars.
So what has changed since then? According to the news in Decrypt, analysts say that not much has changed from a technical point of view. However, from an infrastructure and market perspective, there is a whole new world out there.
Jason Deane, an analyst at Quantum Economics, said:
“MANY MANY PEOPLE DO NOT UNDERSTAND THAT BITCOIN IS THE SAME IN 2020 IN TERMS OF TECHNIQUES AS 2017. FROM NOW, THREE YEARS AFTER IT WILL BE THE SAME; AFTER ALSO… BTC IS NOT DESIGNED TO BE CORRECTED IN THE BASIC LAYER, ADDED FEATURES TO ITSELF, OR CONVERTED INTO A DIFFERENT FORM. ”
But what has changed is perception of Bitcoin. So both individual investors and large corporations have begun to see their funds as a way to protect against devaluation. As strong and influential players openly admit, “Bitcoin has therefore become the ‘smart game’ of 2020 and beyond,” said Deane.
How has the Bitcoin industry grown?
Emiliano Grodzki, CEO and CSO of Bitcoin mining company Bitfarms, explained that global crypto markets today are far from what they were in late 2017, according to Decrypt. In addition to some serious infrastructure developments, the figures on the market in the last three years have also changed:
“SINCE THE FIRST RECORD IN 2017, 36 MONTHS OF MATURATION AND BUILDING HAS PASSED. THE FIELD WAS PROFESSIONALIZED, ALMOST ALL ICOs LAUNCHED DURING ATH IN 2017 WAS FAILED. DURING THIS TRANSITION, VERY Few COMPANIES STAYED STABLE, NOT ONLY THOSE WHO WANT TO BUILD LONG-TERM BUSINESS MODELS SERIOUSLY, Believing BTC’S FUTURE ALSO CONTINUED. ”
He claimed that a major difference with today’s bull run was that Bitcoin’s rally in 2017 was driven entirely by individual customers. Investors were able to allocate their capital at that time and were skeptical of BTC’s fundamentals.
Grodzki noted that 20% of the US dollar’s total monetary base was printed this year alone. Meanwhile, the coronavirus outbreak has “revealed the reality of how governments are tackling the fiscal deficit problems.” said.
“Next year we will see whether a US dollar bill will have the purchasing power it has today. Bitcoin is not only the best form of value storage, it’s also a reliable machine, and this is just beginning. ” used the expressions.
Right now, the future looks really bright for Bitcoin. After this year’s halving, the cryptocurrency stock-flow has doubled. “If history repeats, it means that the estimated market value could rise ten times,” said Konstantin Anissimov, CEO of the crypto exchange CEX.IO. This means that BTC could reach $ 50,000 by the end of the 1st quarter of 2021, ”he said. The CEO also added:
“CONSIDERING THE INCREASING DEMAND OF CORPORATE INVESTORS WHO WANT TO PROTECT FROM INFLATION, THE LEADING CRYPTO CURRENCY WILL EXCEED 90,000 DOLLARS AT THE END OF 2021 AND WE HAVE REACHED A KILOMETER STONE AFTER THAT WE ARE ADDED.”
There may be several main reasons why the price of Bitcoin has risen sharply recently, and the support of both corporate and general individual investors, crypto fans, is one of the biggest factors.