Is Bitcoin dying or just hibernating? This past year after the massive crash in the Bitcoin value, people are hell bent on the fact that Bitcoin is nearing its final days. People went so far ahead that recently CNBC’s Fast Money held a mock funeral for Bitcoin. As the longest bear market in the world of cryptocurrencies continues, there are nothing but prayers.
From June to November 2011 Bitcoin came crashing down by 93 percent. The further two declines were of 57 and 83 percent.
That kind of volatility can make anyone weep and due to this there is no surprise that the mainstream media has declared Bitcoin dead 347 times. But when people are out there dragging Bitcoin in the streets and sheets. I’m sorry that was really unnecessary. But yes, what they forget is that this is an exponentially bullish market, we got these fancy words from a website.
What we really mean by this is that, buying and holding for the long term would have netted you returns in excess of ten, twenty, or even hundreds of times you investment. Unless you have some GTA cheat codes up your sleeve then excessively entering “motherload” will not help you get all the Bitcoin, aka this ain’t a get rich quick scheme, honey. But HODLers on the other hand, they are about to get lucky.
Perhaps the biggest problem doesn’t lie in crypto itself but the metric that is used to measure it. Most of the naysayers focus on the price which is somewhat a superficial way of measuring bitcoin. The value of bitcoin lies much deeper than just it’s face value.
If anyone was to look at the charts and compare, they can see that the recorded number of transactions on the bitcoin network since it went live in 2009 have increased even though the monetary value has gone down. This means that though the price went down, the transactions did not.
Adoptions continues to grow.
Now another aspect to take into account is that economical situation of several countries. Places like Venezuela continue to transact money more than ever before. Staggering rise in inflation has forced many to look for alternatives and for now, Bitcoin is their best bet!
In addition to this the hash rate also paint a pretty picture; it is showing a healthy overall picture of the bitcoin ecosystem. No metric can completely tell us the truth but we know that the market value is less important to Satoshi as compared to the Bitcoin’s adoption.