Media ‘mania’ can be misleading
So what causes the claims that Bitcoin is doomed or already dead?
While the price crash in early 2018 stung many individual investors, it’s important not to be misled by media outlets that create content aimed at getting clicks—not sharing the facts.
Reporting only the “wow-factor” figures doesn’t paint the full picture. Instead, we need to look at Bitcoin’s history—at which point we get a whole different outlook.
That’s because Bitcoin’s price spikes are always characteristically followed by a price drop: they’re not unexpected.
On the contrary, seasoned institutional investors will often take such price drops as their cue to invest. And, crucially, each new price ‘low’ has typically been exponentially higher than the one before it.
So, underneath the mayhem of price volatility, the Bitcoin market grows steadily stronger.
|The average ‘price lows’ of 2018 and 2019 are higher than those in previous years, such as the low of January 2015.|
The ecosystem: Dying or thriving?
While it’s easy to get caught up in “price panic,” when we take a breath and zoom out, we see a calm ecosystem that continues to thrive.
Right now, more merchants than ever before are accepting payment through Bitcoin Cash—a type of Bitcoin which lets you send any amount of money in seconds for less than a cent.
This means Bitcoin Cash (BCH) is becoming increasingly used as a global currency for commerce: from buying your morning coffee to booking flights to far-flung destinations.
Likewise, as an increasing number of developers and other innovative minds continue to build apps around Bitcoin, it becomes further established in the financial landscape of the future.
In other words, far from dying, the Bitcoin network is maturing and becoming more diverse by the day.
Bitcoin: still better for you
What the future holds for Bitcoin, nobody knows.
But what we do know is that, compared to traditional currencies like the U.S. Dollar, it’s safe to say that Bitcoin is better for you.