Fundamental Factors of Bitcoin are Improving Today Other Than The All Time High Prices in 2017
The cryptocurrency market has been a bit fickle since it reached its height back in 2017. In December that year, the crypto asset nearly reached $20,000, but the market has been in a downward spiral ever since.
The bear market has been extremely damaging to the rest of the industry, but recent changes suggest that this could be the year for Bitcoin to truly thrive to a greater capacity than what it saw back in those days.
Bitcoinist breaks down the developments into several factors, starting with the improved fundamentals. All markets go through multiple bull and bear cycles, and Bitcoin’s most recent bear market has been the longest it has ever experienced. Still, even with the bear market, Bitcoin continues to build, giving them stronger fundamentals than what the industry saw in 2017, further perpetuated by the steady climb that the price has seen for almost a year and a half.
While getting bitcoins has been difficult for some areas, the number of fiat-on-ramps have increased since 2017 substantially. Basically, this means that more exchanges are opening for fiat to crypto trading, which is highlighted by major exchanges like Binance and OKEx. The Cash App by Square managed to secure a BitLicense in New York last year, which makes it easy to purchase BTC on the program.
Earning Bitcoin is becoming easier as well, and institutional investors like Bakkt will end up using Bitcoin to settle BTC futures. .
Even though QuadrigaCX has been a prominent story in the crypto industry, this year is getting better with reducing scams in the marketplace. Since 2017, the SEC and other authorities for these regulations have been able to reduce Ponzi schemes and bad actors, which is partially due to increased knowledge in the crypto world and partially because of the aggressive regulations being established.
The use cases that Bitcoin is being implemented into are a major selling point of the crypto asset at this point. Most people are aware of the use of the token as a store of value, but it is being used as the main source of payment in places like Venezuela that are impacted by hyperinflation and where there are a significant number of unbanked citizens. Furthermore, there’s organizations set up to make it easy for charities to accept BTC donations, like BitGive.
Though Bitcoin has historically had scalability issues, the addition of the Lightning Network is improving their progress and has already expanded to 1,000 BTC capacity. The progress made in just over a year has been a big help to the network, and the mass adoption will eliminate the high fees, wait times, and more.
Bitcoin ATMs are making the crypto asset more accessible to the public, and they were not quite that popular in 2017. Right now, the number has doubled since 2018 alone, reaching well over 4,000 last year. Though regulations in Dubai caused the ATM to be pulled, a few small adjustments will likely ensure that it can make it back to the public.
The progress throughout the capabilities and the accessibility of Bitcoin have been impressively helpful to bringing more investors in. However, the actions of multiple key personalities in the crypto industry have played a role as well. Bitcoin has friends in the SEC and even in presidential candidate Andrew Yang. Furthermore, since being deemed outside of the laws that would make it a security, Bitcoin has had even more flexibility.
Considering that Bitcoin has already touched at $20,000, the likelihood of this price point happening again is pretty high. It was thought to be impossible even in December 2017, but now it is just another target that needs to be met. At this point, Bitcoin is priced at $4,783.54, seeing an increase of 15.23% in the last 24 hours.