The pressure got increased for the global financial system to cope up and to develop as per the needs of its customers. Disasters such as the housing bubble collapse in 2008 and the failed currencies in places like Venezuela and Zimbabwe have seen people look for another course of action to traditional banking and financial systems. For many people, Bitcoin emerges as a great solution, as it has the ability to be used as an international payment system and it also doesn’t involve third parties or government organizations.
Even though Bitcoin got geared up too fast in the last three years, the whole credit goes to media as well as public attention that it has been going on since decade. As early as 2010-2014, cryptocurrencies were not well known, and their initially reported use as a tool to buy weapons and drugs on the darknet. Soon, innovators and technology saw the potential of cryptocurrency not only as a means of tax evasion and shadow buyers but also as a tool that could benefit consumers with a fast and stable transfer of value. The broad audience realized that there was nothing to fear from Bitcoin, and people in all spheres of life tormented by the system, as well as by banks and high fees, began to do their own research. After people began to get interested, the cryptocurrencies increased.
The huge leap of interest and public consciousness has forced banks, governments, and companies on the scale of IBM, Microsoft and Amazon to explore digital currencies and their core technology. The last three years have set a charming basis for the future of money.
About three years ago, news came about the early miners and investors who saw thousands of accumulated Bitcoins that turned into millions of dollars. Overnight millionaires appear everywhere, with Bitcoin’s price rising to $1,000. Suddenly, Bitcoin has been bought by amateurs and investors who see a chance to achieve the dream that comes quickly. Bitcoin was relaxed to come to be and trade and it looked like a decent choice to make money because the attention in the digital coin makes the price bubble up. Bitcoin needed less than a year to 20 times its value by 2017, which was supposed to be a cautionary sign for every cautious investor.
With all its beginnings, the original coins (IPO with cryptocurrency) began to appear everywhere. Blockchain companies create a sign of their business and then put it on the market in order for investors to buy in the hope of making a huge return on their investment. On one side, ICOs interrupted the venture capital model in a way that has not been noticed so far, with companies able to finance their business within minutes, hours and days beyond their expectations and without all the rules that traditional companies have experienced. They had the opportunity to self-finance with thousands of investors around the world who want to invest in the golden fever for cryptocurrency.
On the contrary, space was overwhelmed by scammers and amateurs who wanted to take advantage of the opportunity for funds in the unregulated space, often without the intention of paying to investors in any way. People were flinging money on the smoothest projects without doing their due conscientiousness and little knowledge of the company’s success model. Over the past few years, many ICOs, some of whom have raised millions in capital, have failed to take the money with others, while others have been scammers. OneCoin is an excellent example of ICO scam because it has taken the cryptocurrency excitement and used it to mask a clear and obvious Ponzi scheme. Expected financial damage in this fraud has exceeded $4 billion.
Hype triggered a bubble that quickly popped out and $20,000 Bitcoin fell to levels of $3,000 in 2018, launching a long-term bear market and scorching a lot of hypothetical investors. The bear market has caused many newcomers to withdraw, some go out and some keep a few Bitcoins hoping to turn. The bear market was bad for many of those who invested, but overall it was a good thing for cryptocurrency because it makes people stop using Bitcoin as a hypothetical asset that was never meant to be. With fewer people redirecting space, businesses and regulators have been able to get in and focus on what is most important about the cryptocurrency, which is the core blockchain technology.
Abruptly, IBM, Microsoft, Amazon, and others were building blockchain blocks. Banks that once laughed at the ecosystem now hire blocking engineers, adding unbelievable legality to space. The regulators have already seen that the block and the numeric symbols are of great value and can be separated from the frauds and hacks that are often seen in the ICO markets. Regulators wanted to work with technology, and companies wanted to use it for their systems.
As it made a massive hit in 2018, the cryptocurrency market began relying on the legitimacy of its technology-block-winning. Abruptly, after mostly losing profits, several cryptocurrencies began to pick up at the beginning of 2019. In a little while, the positive news of the cryptocurrency market saw the return to the interests of society – only this time the interest was based on more conjecture supported by large institutional money.
The media began to announce the first quarter of 2019 for the ‘Cryptocurrency Spring’, which has been excited both by investors and businesses. People predicted that the institutional buy-in will re-start the space, and it looks like 2019 is turning into a year of studying the cryptocurrencies for businesses. Co-founder and Product Architect of Bancor, Eyal Hertzog and a longtime crypto enthusiast, spoke of his predictions about the forthcoming of cryptocurrencies:
“Cryptocurrencies, as we know them today, are only the tip of the iceberg. In the future, we’ll see tokens for everything from artists and artwork, to neighborhoods, charities, startups and more, creating new network models and embedding localized incentive structures into online and offline communities across the globe. Right now, the Libra project represents a watershed moment as Facebook, one of the largest corporations in the world, has entered the fray along with giants like eBay, PayPal, and Visa.”
Bitcoin has already passed the mark of $12,000 and shows no signs of delay in returning to the public’s favor. We hope that with the regulation of the road and the legitimate institutions that are leading this way, crypto market will become more stable, more reliable space for the prosperity of real companies and new technologies, which will lead to transactions in the 22nd century and for the betterment of all of us, changing the financial systems as well.