The Revolution of Cryptocurrency: How Bitcoin’s Ecosystem has Experienced Change in 10 Years
It has been quite some time since investors around the world really started taking notice of crypto. Looking back, we can say that the sudden spike in interest came in mid-2017. Soon enough, the price started growing, which attracted even more investors. As a result, the price grew even further, and even more investors came until the crypto space grew to a size that most people would not dare predict even a few months earlier.
About a year ago, Bitcoin was already over $19,000 per coin, and it was getting closer to $20,000 with each passing day. Ethereum itself grew to nearly $1,500 in December 2017, with its dApps finally gaining more exposure.
Meanwhile, crypto-based businesses started emerging all over the world, with their ICOs gaining massive amounts of money within hours of launch. The situation seemed too good to be true, and as it turned out less than a month later, it was.
Now, in the final days of 2018, we look back once again, and we see that the space grew too quickly to stabilize, especially since it can barely manage to keep some levels of stability while being 5 times smaller. Meanwhile, ICOs have all but died out, and Ethereum's dApps are once again seeing poor usage.
While some investors may have left the crypto space due to bad prices, large volatility, and other crypto-related issues — there are also those who understand that crypto's way to greatness has to have its ups and downs. The last year's hype served to increase exposure and present crypto to the world. This year's crypto winter also serves a purpose, as it eliminates bad trends, weak coins, and investors who are going to abandon the space at the first sign of trouble.
Of course, for anyone wishing to bring a change as large as the shift towards a completely new type of currency, changing the attitude whenever the price makes a move is not good enough. There is an entire term dedicated to holding on to crypto even when the conditions are bad. The term HODL, which originated as a misspelling, did not come by accident. Because of that, price talk among the crypto communities became somewhat of a taboo, which allowed everyone still trying to support the space actually focus on what matters.
Crypto In The Past, Present, And Future
As mentioned, cryptocurrencies have had their year of hype, which was 2017. Prices were high, investors are rushing to join, and businesses were appearing left and right. Exchanges had to hire entire support teams to answer their customers' needs, and many other projects, such as Steemit, had to do the same.
The hype grew as the year approached its end, and no one wanted to think about what the consequences might be when the hype dies down, as it always does.
Then, January 2018 happened, and the situation turned overnight. The prices dropped, and so did the cash flow. The crypto space market cap started losing billions, and the interest in ICOs died down. With less money to be invested, those who were still investing in projects became picky about where they will place their money. Governments around the world started talking about crypto too, mentioning regulations, state-backed coins, and the blockchain.
Institutions were not yet ready to join in, with many of them seeing the market crash as proof that crypto is nothing but a bubble after all. People started questioning how much good can decentralization actually do, and the nosedive lasted for months. Finally, it stabilized, only to crash yet again in November. Now, we are in another seemingly stable period, with many hoping that the crashes are done and that the new surge might start.
So, can this actually happen? A lot of experts view the events of the past two years as a beginning of steady growth. First, there was the hype, followed by a correction, and now — it's the steady growth that is supposed to follow.
This might be true, although there are also those who believe that the correction is still not over and that it will also expand to include 2019 as well. Experienced investors were likely aware that something like this might occur, but newcomers invested most, or even all of their holdings into crypto, which has already turned out to be a bad call. Some of the businesses already had to shut down, but there are also those that are not strong enough to survive, but it takes them a bit more time to close shop.
After space eliminates them as well, the new ones will emerge, and these businesses are expected to be the ones that will actually drive crypto adoption to the mainstream.
Further Down The Road
As mentioned, the real crypto revolution has yet to come, and it will not be a short-term thing fueled by hype alone. The crypto space has learned its lesson, and it now knows its flaws. The long winter is the time for rethinking the strategy and fixing the issues. Those who can do that will survive, and those who cannot adapt will have to fade away and be replaced.
Blockchain and projects such as cryptocurrencies will create a tighter bond, and products will feel more natural, with smoother performance and proper service.
However, all of this takes time, and 2019 might be only the beginning. As there are centralized companies today that have been around for decades, or even centuries when it comes to a rare few, so will crypto businesses grow, expand, and last. Al that investors need to keep in mind is that good quality doesn't come overnight, and 2017 is proof of that.