Yeah! Bitcoin just broke the $17,000 barrier for the first time since 2017, I know how it felt back in 2017. Dreams, expectations, propaganda, fear, uncertainty and doubt. Bitcoin broke through the $16,000 level and went more than four steps higher to $20,000. Three years later, that’s still the highest price point we’ve ever since bitcoin trade at.
It’s been an erratic year with mood swings. The ever-changing dynamics have culminated to what we are seeing currently. Couple of months back, I queried the flashing signs of a bull run. Well, I was optimistic with a tint of pessimism too – realistic. Months later, it seems things are swinging towards the angle of optimism.
Bitcoin is breaking the 2017 records; sad enough, the story is different for altcoins. If a replay of 2017 is on the line, then the trend is expected to get a lot better for altcoins and bitcoin as well.
Predictions have followed the end of the 2017 bull run and the infamous crash. Previous years have teased a repeat of the 2017 events. For many punters, 2019 was the year…well they were wrong. Despite bitcoin reaching a high of over $13,000 in 2019 it finished the year well below $9,000. Despite many scares and short-term price crashes, bitcoin has smashed its past three years performance and is set to go even higher.
The events of 2017 created the much-needed awareness about cryptocurrencies and a tangible percentage of cryptocurrency enthusiasts today were attracted by the financial performance of cryptocurrency in the year. With bags of cryptocurrencies on the line, the 2017 bull run didn’t end as expected. Cryptocurrency and blockchain technology have since this time gone into a period of building – technologically and socially. While some new and existing projects work hard to build the reputation of cryptocurrency, others have since taken what they can from the ecosystem.
These three years have given birth to positive and negative practices as the number of cryptocurrency enthusiasts and projects continued to skyrocket. The crypto space averages over 3 new projects daily, it has also seen lots of technological breakthrough as it edges closer to mainstream adoption.
Three years later, we are having some convincing signs of another bull run. With the whole changes in the crypto space, what will a bull run look like? Same as 2017? I strongly doubt…
A bull run in 2020 will probably last longer that what we had in 2017. The rush of 2017 was a product of fear, uncertainty and doubt. While most were still grasping the idea of bitcoin and cryptocurrency, there existed a deep fear and disbelief in the concept of cryptocurrencies. Cryptocurrencies were pretty crude and all that existed were promises and flashes of global acceptance. Cryptocurrency enthusiasts at this time only had ‘faith’ to hold on to. Cryptocurrency and blockchain technology were yet to prove what they could really do. No working prototypes, just virtual displays. It will be hard to believe in a mere virtual idea.
While some held high hopes, others cashed in on their already made gains. It was clever to leave the ship, but it was really uncertain if the ship was actually sinking. Actually, the ship was as stable as possible, the occupants were only filled with fear. With the little regulation that existed, the market for a free space, and the free fall followed. Only the strongest projects lost below 70% of their peak value.
2020 is different in numerous ways. Cryptocurrency and blockchain technology have been seen working, just as planned. In contrast to the virtual prototypes flashed three years ago, the abilities of cryptocurrencies and blockchain technology have been exhibited in real. If a belief in virtual prototypes lasted for a couple of months, then a belief in realistic prototypes should last for much longer. The crypto space is a bit more regulated than what we had three years despite looking really wilder.
In 2017 majority of investors were simply throwing all money in with very little knowledge of what cryptocurrencies were. Uninformed investors filled the crypto space three years ago and with only an idea, they bought a truck load of cryptocurrency. The crash followed as these investors kept learning about the actual technology. ‘Maybe it wasn’t even worth it’, guess a couple of investors said that before cashing in on their gains. It was long due, the crash. Contemporary cryptocurrency enthusiasts and investors are way more knowledgeable about cryptocurrency and have learnt a lot over the years, myself especially.
If another bull run happens, we will be having a greater number of investors who really knows the worth of the coins or tokens in their wallets and who are really ready to hold on for dear life, or till it gets to this presumed worth.
One major drive of the 2017 bull run expected to reoccur is the Fear of Missing Out. The fear of missing out of what was looking like a lifetime revolution drove a good number on investors to throw a substantial amount of money into cryptocurrencies. Some investors simply bought ‘cryptocurrencies’. Yeah, just the name was enough to be convinced and make a purchase. Every cryptocurrency which showed signs of a price gain or impressive (verified?) announcement was followed with lots of buy orders. Due to greed and desperateness which are innate in humans, the same scenario is bound to occur. Milder or more intense? It could go any direction, only time will tell.
IF we have an actual bull run any time from now it will be notably different from what we had in 2017. Share your thoughts too!