Almost three years ago, in December 2017, Bitcoin was on everyone’s lips, after reaching a historic high of $19,786, which was 16 times the value of the crypto currency in April of that year.
After that, the (apparent) decline: Bitcoin lost up to 84% of its value, and many feared it was another case of runaway expectations driven by speculation.
Even among those convinced of cryptomonies, Bitcoin began to lose its luster as the leading currency, and they began to look for alternatives such as Ethereum and other altcoins.
And yet, 2020 arrived, a year of madness, and Bitcoin has not only come back, but has also beaten its historical maximum, marking 19,829 dollars, according to the Bitcoin Price Index published by Coindesk.
In summary, so far this year, the value of the currency has grown 167%; in fact, from its annual lows in March (when it fell more than 50% in a single day), the Bitcoin has risen more than 400%.
You can’t blame this on the media hype. The total volume of both media headlines and social media messages about Bitcoin has been far from the 2017 boom in recent weeks. In other words, people barely talk about it… but even so, investors are betting on the star crypto currency, and executives from companies such as Citibank are predicting new rises in its price, although for this to happen, it should first be able to stabilize around 20,000 dollars, which it still hasn’t achieved so far.
The economic situation helps with this: with all central banks encouraging ‘cheap money’ to help combat the economic slowdown caused by the COVID-19 pandemic, investors see Bitcoin as a protection against the possible return of the boomerang in the form of runaway inflation.
Another relevant fact that indicates how the wind is blowing in Bitcoin’s favor again: If only two years ago the CEO of PayPal stated that this crypto-currency was basically “a scam”, his successor has announced that the payment platform will start operating without intermediaries using Bitcoin, Ethereum, Litecoin and Bitcoin Cash, the most stable and popular crypto-currencies.