Bitcoin prices rebounded sharply in 2019, but the year may not be as strong if measured by other measures. Bitcoin prices have nearly doubled since December 31, 2018, from about $3,690 to $7,155. But the price is now down nearly 50 per cent from the 2019 high of $13,879 hit on June 26.
Bitcoin prices rebounded sharply in 2019, but the year may not be as strong if measured by other measures.
Bitcoin prices have nearly doubled since December 31, 2018, from about $3,690 to $7,155. But the price is now down nearly 50 per cent from the 2019 high of $13,879 hit on June 26.
Bitcoin outperformed its nearest competitor. The value of the entire cryptocurrency market rose to $192 billion from $125.3 billion a year ago, but much of that value came from Bitcoin. Most of the “alternative coins” have fallen.
Ether, for example, was at $128.40 on Tuesday, down about 2.2 percent for the whole of 2019. The Swiss currency is down about 46 percent for the year and is currently trading at 19 cents.
The Bitcoin market has come a long way in the past 10 years. Bitcoin was released in January 2009 by an anonymous programmer, when the currency was free of users and markets and no exchanges to trade. Bitcoin was not even priced and was not bought and sold for about 10 cents until July 2010.
But now there are millions of users and hundreds of exchanges trading bitcoins. Bitcoin has limited use as a means of payment, but preparations for its introduction into the institutional investor market are increasing.
Earlier in 2019, the New York Stock Exchange’s operator, the Intercontinental Exchange (ICE), launched a bitcoin futures platform called Bakkt. Fidelity Investments, the large financial institution that manages $7.8 trillion in assets, has also been building bitcoin trading and hosting services.
The next challenge is how to get past the early stages of Bitcoin.
“The fruits that are available are all gone, and now we’re on the tree,” said Mati Greenspan, a writer and publisher of Quantum Economics. “
Venture capital interest has begun to cool. Blockchain received about $1.8 billion in wind investments in 2019, with 315 transactions, compared with about $3.1 billion in 2018 and 444 transactions, according to CB Insights.
In dollar terms, bitcoin transactions last year were about $3.8 trillion, just above the $3.7 trillion in the 2017 bubble year, according to TradeBlock, a research firm.
Bitcoin will also face much stronger competitors in 2020. Facebook Inc. (FB) is also building its own digital currency, libra. The Chinese government will also reportedly launch a digital currency. Mark Carney, governor of the Bank of England, has advocated the creation of a new digital international reserve currency to replace the dollar.
But those who remain in the bitcoin market will not be intimidated by competition. “We’re in the ‘they’re going to attack you,'” Greenspan said. This phrase is often used as a famous quote from Mahatma Gandhi.