There is no doubt that cryptocurrency — specifically Bitcoin (BTC), which is frequently used as a barometer for the health of the entire sector — has made a comeback. As of the writing of this article, Bitcoin stands at a little over $9,000, very close to the $10,000 rebound that investors hoped for sometime this year — and we are barely in the third quarter.
Although there are signs that crypto winter is over, many experts are still understandably cautious.
Related: What's Next for the Industry as 'Crypto Winter' Thaws?
Cryptocurrency has been a notoriously unstable investment, first selling at less than a penny and then varying from $400 to $1,242 between all of 2013 and 2016. In 2017, crypto investors were gleeful (and some, probably, quite smug) to see the currency reach the insane height of $4,400 and then end the year breaking an astonishing $20,000 — all this after plummeting to $2,000 that same September.
Of course, what followed that bright season in the cryptocurrency industry was what we refer to as crypto winter — the drastic drop in value following several high-profile Ponzi schemes, successful hacks, crypto-jacking attempts and overall negative media coverage.
In this article, we will discuss the question of whether crypto winter is over, whether those who have already invested have a reason to be hopeful, and whether those who haven’t should jump on the bandwagon soon before prices skyrocket. We will also place a focus on blockchain technology as it exists both inside and outside the cryptocurrency industry, and why widespread adoption of this new technology is an indicator of cryptocurrency’s future success.
Is crypto winter over?
For many of the experts, the answer seems to be “yes.” From crypto enthusiasts to Forbes, the current viewpoint of many is that Bitcoin is poised to make huge gains for the next 10 years. Although the vagaries of the cryptocurrency industry are as mysterious as Satoshi Nakamoto himself, it seems that we have headed into a period of stability during which the fundamentals of cryptocurrency are better understood and trusted.
Only 4% of Americans polled cite cryptocurrency as their preferred long-term investment, but this is very likely going to change in the near future, as Bitcoin has nothing but room to grow.
Many compare the future of Bitcoin to that of the internet, and claim that the commodity is going through the same growing pains of scalability, availability and ease of use that the internet first went through from 1995.
Similarly, market experts note that although only 11% of Americans own Bitcoin, those numbers are on par with other huge technological developments in their early stages, such as smartphones.
Many point out that the disruption caused by the coronavirus outbreak to traditional banking and investing institutions may be a motivator to invest in the digital currency to protect against inflation and the questionable resilience of fiat currencies.
Many experts also suggest that cryptocurrency transactions aren’t completely secure and anonymous without the use of a virtual private network, or VPN. They are also irreversible. Once a coin is gone from your account, it can easily vanish without a trace. Hackers have taken advantage of this by breaking into exchanges and stealing small amounts from each user.
So, it will likely take time until Bitcoin gains trust from the wider public, but for those willing to take a risk, it might be the most profitable investment of 2020, specifically for those who are willing to wait 10 years to witness the true extent of its growth.