As far as Bitcoin is concerned, 2017 was a year for the dreamers, the believers and the overachievers.
A combination of unbounded optimism with sheer dumb luck saw the first Bitcoin billionaires, a title proudly held by none other than the Winklevoss brothers. Bitcoin outranked entire countries in terms of energy consumption and market cap against GDP, and somewhere in a Newport landfill site lies an infamous $100 million hard drive, containing 7,500 discarded Bitcoins.
“What a year!”, one might exclaim. “What an understatement,” I shall denounce.
Bitcoin began 2017 by hitting the landmark $1,000 for the first time on New Year’s Day, a crowning moment for the world’s first decentralized digital currency. Leaving financial analysts dumbfounded, jaws hit the ground as the price continued to climb, gaining momentum throughout the year and coming within smelling distance of $20,000 mid-December.
China made its opinion known
January meant more for Bitcoin than its iconic milestone. In a move to crackdown on unregulated Bitcoin exchanges, China kept them under close scrutiny, the result of which seeing a then-30 percent drop in the value of the cryptocurrency. “When China sneezes, Bitcoin catches a cold,” was CryptoCompare CEO’s humorous statement.
Apparently dissatisfied with proceedings, the People’s Bank of China moved to outlaw Bitcoin exchanges entirely in September, which saw the currency further losing a portion of its value as investors began to doubt the safety of their investments.
The impact of the genius investor brothers
Tyler and Cameron Winklevoss, having bought $11 million worth of Bitcoin in 2013, continued to laud Bitcoin publicly. In more ways than one, their continued insistence of the value of Bitcoin directly increased its value, as their statements prompted new investors to buy and old investors to buy more, and hold.
Not solely positive, their 2013 application for a Bitcoin exchange-traded fund was rejected in March 2017, an outcome that saw a substantial drop in value. As it turned out, the majority of the public was expecting the application to be approved, with the rejection causing doubts about the cryptocurrency.
Bitcoin marched onwards unperturbed, regaining the lost value within days of the rejection notice.
May through September: $2,000 to $5,000
As the months progressed, Bitcoin hit $2,000 towards the end of May, followed by $3,000 in the weeks thereafter. July saw a dip with August nursing recovery, hitting $4,000 before the month was out.
It became expected, at that point, that Bitcoin would reach $5,000 in September. And so it did, only to sink back below $3,000 in that same month.
October through December: $10,000 to $20,000
Quick to recover from the end-of-September blues, the last quarter of 2017 was the most sensational of all for the digital currency, as the value was doubled from $5,000 to $10,000 from October to the last week of November.
Incredibly, during the course of December, Bitcoin came close to doubling again, almost hitting the $20,000 mark before dropping by $4,600 on December 22, 2017.
On the last day of the year, Bitcoin was trading under $14,000 – a figure it had hovered close to since Christmas Eve. From January’s $1,000 to December’s $14,000, the flagship digital currency had increased 14-fold, leaving experts stunned in a sequence of events that nobody had seen coming.
Currently trading at $14,939, it will be difficult to identify the path traversed by Bitcoin in 2018.
How was your experience investing in Bitcoin? Do you have predictions for the year of 2018? Leave a comment below and engage in the discussion.
Feature image by Alex Kunchevsky