As Bitcoin (BTC) turned 14 this January, it seems to have survived the test of time. As per a report by Statista, an online platform for consumer data, Bitcoin’s first instance of volatility was observed when its value jumped to US $19,650 on December 15, 2017, from $ 3,726.51 on September 15, 2017.
In a month’s time, the exchange rate of bitcoin increased by 4x. “As it grows old it will be less receptive to negative commentary or incidents. Bitcoin’s popularity will continue to grow with time as users are its biggest advocators due to its decentralised nature and we will witness Bitcoin becoming the first choice for the store of value,” Shivam Thakral, CEO of BuyUcoin, a cryptocurrency exchange told FE Blockchain.
It is to be further noted that BTC broke all previous records on November 12th, 2021, and reached an all-time high of $64,400 per coin, as per data by CoinGecko.
However, on November 12, 2022, bitcoin’s value was recorded at $16,855.30, which was, coincidentally, also the cryptocurrency’s lowest exchange rate in the last 12 months. The market was noticeably different by the end of 2022, however, with Bitcoin prices reaching roughly 16674.34 as of January 03, 2023, after another crypto exchange, FTX, filed for bankruptcy.
Industry experts opined that the cryptocurrency market is no longer just about bitcoin. This is expected to become even more evident this year. “Most estimates suggest that several cryptocurrencies are about to see a very good year in 2023. BTC will survive the bullish market and also the crypto winter,” Raj A Kapoor, founder, India Blockchain Alliance, a think-tank, added.
Furthermore, various economic factors such as inflation and macroeconomic factors affected the cryptocurrency market. Prior to the current market meltdown, the price of cryptocurrencies such as Bitcoin was as high as $67,000 in early 2022. “With nations drafting legal frameworks around the usage of cryptocurrencies, this year is going to be a milestone moment for Bitcoin and the cryptocurrency ecosystem,” Edul Patel, CEO, and co-founder, Mudrex, a cryptocurrency exchange added.
As per Statista, Bitcoin will run out by 2040, despite more powerful mining equipment. This is because mining becomes exponentially more difficult and power-hungry every four years, a part of Bitcoin’s original design. Because of this, a Bitcoin mining transaction could equal the energy consumption of a small country in 2021.