Interesting facts
28. February 2022  • clock 3 min •  Daniel Mitrovsky

Bitcoin Is Alive!

“Bitcoin is dead.” Since 2010, this bleak sentence has appeared on the internet over 440-times. Despite the constant burying of Bitcoin in 2021, it managed to break its historical maximums several times over and reach a value that hardly anybody could’ve foreseen a few years back.

Sometimes surface opinions that Bitcoin is already beyond its zenith, Ethereum is an ancient technology, and these networks will be replaced by brand new blockchains that allow for faster and cheaper transactions. However, just because the bitcoin blockchain doesn’t evolve as dynamically as other blockchain platforms, it doesn’t mean that bitcoin is dead. On the contrary, even though the ‘unwillingness’ to evolve Bitcoin design is often criticised, it’s sticking to the original structure that gives Bitcoin what truly global money of future need – stability.

That doesn’t mean stability of exchange rate. Bitcoin indeed remains a risky and highly volatile asset. However, with the global adoption, the influx of capital, and growing market capitalisation, bitcoin is becoming more stable also value-wise, and its volatility is going down.

Developing Blockchains Provide Healthy Competition

Smart contract platforms such as Ethereum, Solana, Avalanche, or Terra are, unlike Bitcoin, part of the technological revolution best demonstrated by the colossal growth of the decentralised finance sector and non-fungible tokens (NFT).

Comparing and burying blockchains without understanding their purpose is senseless. Individual blockchains develop simultaneously while each uses a different technology and design compromises to achieve its goals. The diversity of this technological revolution creates healthy competition for the whole crypto environment, motivating individual projects to innovate and improve their functionalities while maintaining high decentralisation and safety. There is probably no better engine to drive innovation than the competition.

A Year Marked by Bitcoin Growth and Its Obituaries

2021 meant for Bitcoin not only historical peaks and growing global adoption but also several curious obituaries that almost buried it alive. Despite the growing number of bitcoin critics in 2021, the number of obituaries was still considerably lower than in 2017 when bitcoin first shot up like a rocket and achieved almost $20,000. In that year, bitcoin had “died” an incredible 124-times. Even though the number of obituaries in 2021 didn’t reach its historical maximum, it tripled from 2020.

This year, bitcoin was buried several times already. For example, the Inthesetimes article informs about the “ticking bomb of cryptofascism” and that cryptocurrencies are not real currencies but just some Ponzi tools. Imagine all the people who had read a similar, wholly subjective article and missed the opportunity to purchase this cryptoasset. There has to be countless of these not-investors all over the world.

Don’t Be Scared by Drops

Many people invest in bitcoin and alternative cryptocurrencies without trying to understand them. Investors often see them just as an effortless way to quick fortune. Yes, that is also a way to profit from cryptocurrencies. However, it becomes a problem when bitcoin suddenly and rapidly drops – many investors don’t have the stomach for massive price corrections. The lack of faith and knowledge causes them to panic and sell their investment portfolios even though cryptocurrencies could’ve been the best investment of their lives.

Don’t let your emotions influence your investment decisions. Successful management of long-term investing is only possible through rational decision-making. Read our popular article if you want to know what to do when the crypto market is down.

Take advantage of crypto’s potential

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Daniel Mitrovsky


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