London, England, 2nd July 2021, ZEXPRWIRE – Back in 2017, Cryptocurrencies were on a roll. Many cryptos including Bitcoin were shattering records left and right and had economists baffled at the very idea that a digital currency could amass such a large following. At that time cryptocurrencies were considered to be the front runner for replacing the banking system that had created many of its users.
Crypto enthusiasts and supporters believe that a complete blockchain system supported by an internationally verified cryptocurrency would be the best solution to the current issue where users have to pay an exorbitant amount of fees to their banks for verifying transactions. Even then it is never clear whether more charges may apply over a specified period. At its height, Bitcoin was valued at over $20,000 in 2017 and it seemed to be an uphill march ever since it broke that record. However, The Investment Center broker, David Green, says that things turned out for the worst when investors started pulling out their bids from various cryptocurrencies and prices went plummeting. Soon, Crypto had become a thing of the past and it all looked like a small jolt of unknown frenzy that caused the initial craze in the first place.
The Crypto Crash
Bitcoin and many other cryptocurrencies saw the end to their month’s long streak when crypto essentially crashed and burned to result in people losing millions of dollars and billions of dollars worth of mining equipment being liquefied for sale in the used market. This meant that electronic components became cheap and cryptocurrencies were essentially worthless except for Bitcoin and a few others who did lose a majority of their valuation but were able to stay afloat thanks to their relatively large user base.
Everyone was under the impression that crypto had reached its limit and it was very unlikely that the industry would ever get back to its height of power ever again. There were upticks in crypto markets once or twice but even large increments in Bitcoin and Ethereums’s valuation didn’t seem to make the evening news cycle. Instead many simply thought that after the crash of 2017, Crypto was done for good and it was very unlikely for Bitcoin to reach the height of its power ever again.
Crypto fights back
For weeks the signs indicated a return of cryptocurrencies especially when trading firms had started to put their bids in cryptocurrencies. For a few months, it all seemed like everyone knew about the looming boom but kept quiet to pocket the majority of the differences. News outlets were still hesitant in actually doing stories on the looming crypto boom because it wouldn’t be exactly something new. So what happened? Why did Crypto dominate the news once again at the end of 2020 and the beginning of 2021?
Well, it all comes down to the immense surge in renewed interest in the digital currency industry especially with millions of people calling for the legalization of cryptocurrencies to be used in their respective regions because even now crypto was considered an illegal source of income in many countries around the world. It seemed like no one wanted crypto to make a comeback but low and behold crypto shattered its record and rose to above $30,000 within a few weeks. By the end of April 2021, Bitcoin was sitting at nearly $60,000 which is a lot for something that was practically useless for over 2 years after its crash.
Déjà vu all over again?
Many analysts predicted that this time crypto would be able to hold on to its valuation especially because it was backed by industries. Tesla Inc. had just announced that it would allow Bitcoin as a form of payment for buying its products and more and more companies were already working on developing a system for their crypto transactions. It all changed when Tesla had halted its Bitcoin transaction system because of Bitcoin’s mining carbon footprint.
Bitcoin plummeted to its worst levels and has never really recovered since then. This was all because of the reluctances of companies to invest in an industry that was operating on a model that is counterintuitive to their own. At the end of the day, Bitcoin’s drop in value hit the markets hard with investors pulling out and Bitcoin going back to where it was a few months ago, a residual bump in the international marketplace. Right now Bitcoin stands at around $30,000 which is greater than its previous crash price but is half of its valuation just 2 months ago.
Can Crypto recover?
Bitcoin is often used as a gold standard for cryptocurrencies because it was the first to enter the mainstream marketplace. Its market activities set the trend for other cryptocurrencies and right now, things don’t look good for Bitcoin. There have been talks of a resumption of Tesla’s crypto transaction system but until it is confirmed, crypto is stuck in time at 50 % of its valuation.
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