Bitcoin Fundamentals Were on Full Display During the Rigid Crypto Bear Market of 2018
During 2018, Bitcoin (BTC) experienced a bad year in terms of price performance. Nevertheless, Bitcoin’s fundamentals behaved and performed very well compared to its price. Jameson Lopp, the CTO at Casa has written a complete report regarding Bitcoin’s performance during the last year.
He explained that taking into account other metrics rather than the price, Bitcoin performed very well in 2018. This shows that Bitcoin is growing fast, even during bear markets when investors are not as active as during bull markets.
For example, the number of Bitcoin ATMs increased 100% just in 2018 and the network hash rate has also grown during the year. The same happened with Segregated Witness (SegWit) and also the Lightning Network (LN).
According to Michael Novogratz, a recognized investor and crypto supporter, Bitcoin will continue to be the dominant currency in the market for a long period of time. This is due to the fact that there are some institutional projects being built around the most popular digital currency in the market.
Thomas Lee, the head of research at Fundstrat Global Advisors, has always been very positive and bullish about Bitcoin’s price. At the same time, he mentioned that institutional investors allowed Bitcoin to outperform other cryptocurrencies.
There are several companies that are very interested in Bitcoin. One of them is the Intercontinental Exchange (ICE), which will soon be launching the so-called Bakkt platform. Bakkt will be offering physical-backed futures contracts with Bitcoin. It is also possible for Bitcoin to see the approval of the first-ever Bitcoin exchange-traded fund (ETF).
Moreover, during 2018, altcoins fell even harder than Bitcoin and experienced difficulties within their networks. As the founder of ethhub, Eric Conner, says, several low and mid-cap coins have 51% attacks and exchange delistings. He believes that this will continue to happen during 2019.
Low-Mid cap coin death spiral:
-Low hash rate due to bear
-Cheap 51% PoW attack
-Price drop and hash drop
-Cheaper 51% PoW attack
-Exchange delisting due to loss from double spends
-Chain takeover and nowhere to trade
I expect to see this story a lot in 2019.
— eric.eth (@econoar) January 10, 2019
A few days ago, Ethereum Classic (ETC), a top 20 digital asset, experienced a 51% attack with double spends that resulted in the loss of several ETC tokens.
Although several ICO tokens and altcoins were created during the last year, Bitcoin remained the strongest asset in terms of fundamentals. Developers keep working and it was able to resist a very hard bear market. In the future, Bitcoin seems to remain as the leader in the crypto space.