Crypto’s Rise in Popularity over the Past 5 Years
You may have heard about cryptocurrencies, especially with how everyone seems to be putting their money in them. But how did digital currencies exploded in popularity when they have been in existence for quite some time now?
Here is a timeline of the biggest news in the world of cryptocurrency that affected its meteoric rise over the past 5 years.
- After the stellar rise of Bitcoin in 2013, cryptocurrencies were seen by many as an alternative asset like precious metals, artworks, and other collectibles that move differently from the stock market.
- Entry of crypto ETFs reinforced the image of digital currencies as reliable asset investments.
- Increased coverage from media, whether they are negative or positive news.
- Bitcoin price rallied to $13,000 by the end of the year. Being the most popular and biggest cryptocurrency in the market, it is only natural for other altcoins to see a rise in value.
- Ethereum gained more than 10,000% in value within the year.
- More Initial Coin Offerings (ICOs) were presented to the market, inviting more investors to partake in the cryptocurrency craze.
- The rising value of the most popular digital currencies gave investors a massive confidence boost.
- Cryptocurrencies experienced a huge crash in value, shaving off billions of dollars in a short period.
- Government regulations on cryptocurrencies continued to bring the prices down.
- Institutional interest in cryptocurrencies rose despite the crash. Long-term investors saw this as an opportunity to get into the market while everyone was selling their positions.
- Trading platforms launched futures exchange instruments, giving investors and traders more ways to make money in the crypto market.
- Facebook announced the launch of its own cryptocurrency named Libra.
- China announced its use of blockchain technology which powers the most popular cryptocurrencies existing today.
- More miners of Bitcoin entered the scene, deploying fresh capital to acquire more bitcoins.
- New Zealand legalized crypto salaries, further increasing the confidence of investors in the reliability of digital currencies in real-world transactions.
- Bitcoin surged in value again, gaining more than 300% from its slump in the past years. Growing institutional presence is said to be the main catalyst for the price rise.
- Square and Paypal added cryptocurrencies to their payment options, signalling further acceptance that digital currencies can be used in real-world transactions and not just as an alternative asset for investment.
- Limited supply and massive demand for cryptocurrencies, especially Bitcoin, drove the prices upward.
- More businesses in the retail sector accepted Bitcoin as payment, giving investors another confidence boost on the alternative asset.
While there is no way to predict what will happen with the cryptocurrency market, historical evidence suggests that it is on an uptrend in the long-term horizon. The way it has generated a buzz during the past years made more people interested in cryptocurrencies; even non-investors are getting into the bandwagon in anticipation of getting huge returns just by being in the market. With all these factors in play, it is not surprising if cryptocurrencies become more popular in the coming years.