Tuesday 23 April 2019

What Happened to Bitcoin in 2018?


After a surge in 2017 to USD20,000 bitcoin crashed to USD3,000 in 2018. What happened?

Guthrie Weissman in his article on “Beyond the Bubble” suggests some reasons:

       i.          Classic Bubble – international fever, FOMO element, and random companies involved in the surge;

      ii.          No institutional support – clampdown, financial institutions balked and some bank CEOs denigrated the bitcoin; and

    iii.          Internal battles – infighting by participants. Bitcoin cash was developed by some miners, who disagreed with fundamentals of the initial bitcoin system.

Is there any hope for bitcoin?

A hot commodity has turned into a hot potato. Even some toughest critics do see some sort of future. This is a legitimate technology that is going to expand. Dubai believes in blockchain and its future. It wants to become the world’s first blockchain powered government. The initiative is to see blockchain technology improve client services including banking, mortgages and utilities.

So there is still hope for a rise but that depends on market participants and government support.

Reference:

Beyond the Bubble: What happened to bitcoin in 2018?  By Cale Guthrie Weissman





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