Bitcoin tells the very tale of how all cryptocurrencies have come to suffer over the past year or so. Ever since the bull period of 2017 ended, cryptos, led by Bitcoin have been seen fighting a consistent battle not only to secure a regulated status but also to become adopted as means of trade, investment and payment. A comparison of 2017 to the current bear market where BTC has dropped down to as low as $3,400 shows Bitcoin needs to be strong and stable in order to secure a prominent status globally for the crypto space as a whole.
Speaking to BlockPublisher, Partner at investment firm BX3, Kyle Asman suggested the very notion, that adoption and market is at its best when prices are favorable, as seen in 2017. He coined price as one of the most aspects to mainstream success and said:
BTC price is one of the most important things for mainstream adoption. Every time the price of BTC falls, interest in the market drops off.
It is fairly observed that a jump in prices attracts investment and individual consumer as well as Bitcoin is mostly deemed as a store of value in the current status quo. This way, consumers go towards what we have become accustomed to call as ‘HODLing’ and hold on to their assets only to sell at a better price.
This phenomenon was widely practiced in the 2017 episode of price rocketing, as Bitcoin touched $20,000 and interest and adoption was seen at all time highs. As observed by Kyle:
We saw a peak in new wallets, and volume when Bitcoin made its run to $20,000 in December of 2017. Ever since then adoption, and new wallets have dropped with the price.
Many believe that the most important goal for Bitcoin and other cryptocurrencies in the immediate term is to secure regulation. It can build on creating value and application for its existing user base along with incoming potential only gradually. It is a part to acceptance that the current model only attracts when price is ripe, but with the excessive potential in blockchain technology, digital identity and in cryptocurrencies spearheaded by BTC, it can not only see again the highs of 2017 but also become widely adopted.