How Bitcoin has changed since it hit its previous high

We checked the actual data: BTC is trading at $ 22,908 this morning. This is 3.6 percent higher than a day ago and 25.6 percent more than a week ago. Bitcoin’s market cap is $ 425 billion with a total niche cap of $ 659 billion.

Almost three years ago, the price of Bitcoin set its intermediate record at around $ 20,000. On the eve of BTC, it again overcame this mark to the delight of cryptocurrency lovers and even took 23 thousand. It’s time to sum up the main results of the development of the industry for all three years.

It turns out that in terms of market conditions and infrastructure, the world of cryptocurrencies has changed beyond recognition.

Here is a graph of BTC’s behavior over the past two weeks.

Bitcoin Chart for two weeks

A new stage in the history of Bitcoin development

According to Jason Dean, an analyst at Quantum Economics, Bitcoin is technically the same cryptocurrency. Here is his remark in which he shared his view of what is happening. The quote is from Decrypt.

What many people don’t realize is that, from a technical point of view, Bitcoin will fundamentally remain the same as it was in 2017. In another three years and beyond, he will not be different either. At its basic level, it is not meant to be fiddled with, added to functionality, or modified from its original shape.

That is, after three years, Bitcoin will not become a network for the new industry of decentralized finance, as happened in Ethereum, or something similar. The possibilities and purpose of the first cryptocurrency are quite limited, but it performs its functions perfectly.

However, the perception of Bitcoin has changed dramatically in three years. Both ordinary people and large corporations began to see it as a way to protect their funds from devaluation. Dean noted that Bitcoin has become the «smartest investment» in 2020 and beyond.

Bitfarms interim CEO and chief security officer, Emiliano Grodsky, explained that the crypto market today is very far from what it was at the end of 2017. In addition to serious infrastructure development, the last three years have also helped «separate the wheat from the chaff.» Here is a quote from him.

36 months of market development have passed since the 2017 record was reached. The industry has become more professional, almost all ICOs launched at that time have failed. Very few companies have survived this period. There remained those who not only seriously wanted to build long-term business models, but also believed in the future of BTC.

Note that some ICO projects are still working successfully. The most successful example of using this method of financing is the Binance cryptocurrency exchange. The initial sale of the company’s tokens started on July 1, 2017. In three weeks, team members raised the equivalent of $ 15 million, which was enough for a successful start.

The main rule of a smart investor in 2020 is to buy as many bitcoins as possible

Grodsky added that the key difference from today’s bull run is that in 2017, the rise in the price of Bitcoin was completely driven by ordinary investors. The really big players were distracted by the global economic boom and were skeptical about cryptocurrencies.

In addition, the coronavirus pandemic has had a huge impact on the digital asset market, which has “opened people’s eyes” to how governments deal with budget deficits. The expert continues.

We will see if the US dollar will have the same purchasing power next year as it does today. Bitcoin is not only the best vehicle for preserving capital, but also a reliable machine. This is just the beginning.

Conclusion: BTC itself remained a reliable tool for transferring and storing value, regardless of its price. But the perception of cryptocurrency by market players has changed – now, with the development of Bitcoin, they are not only considered, but also actively use it to make a profit. We believe that in the coming years, crypt will definitely become an integral part of the daily life of more and more people. Ignoring the rate of growth of rates and the opportunities that coins provide on the blockchain will definitely not work this time.

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