Bitcoin, for the last couple of months, has been the cause of many nerve-racking moments, the catalyst between a myriad of split-second emotional eigenstates, and the inspiration behind tens of thousands of comprehensive internet researches. Things have slowed considerably in the last fortnight. Is the frenzy over?
In 2009, Bitcoin burst on the scene with a great responsibility on its shoulders- decentralize money and eradicate powerful corporations who serve as middlemen between financial transactions.
It's much like how Frodo was saddled with the task of carrying the One Ring to Mount Doom, the fiery furnace at Mordor.
The odds were stacked against him and he faced a mammoth of obstacles. Success seemed way out of reach.
However, he had the staunch support of a core of warriors who helped as he meandered his way through dense dungeons and giant spider webs.
And he kept moving forward, just like Bitcoin is doing today.
Late 2017: Bitcoin frenzy. Early 2018: Bitcoin dizzy
After experiencing a ton of ups and downs for years, Bitcoin became very popular as 2017 neared its end. The interest to buy Bitcoins entered enormous proportions.
It seemed everyone knew about Bitcoin. Men, women, teens, adults, grandmothers, and kids traded Bitcoin daily.
Everyone wanted a piece of the new tech- students, carpenters, Uber drivers, bankers, business executives and Floyd Mayweather.
In South Korea, the demand was higher. People checked the price every second on their phones, tabs, laptops, and desktops.
The frenzy caused a significant rise in the price of Bitcoin in the country so much so that people all over the world (and in South Korea too) cashed in on the arbitrage. It was called the "Kimchi Premium".
This didn't sit down well with governments and authorities so they started taking proactive measures to curb the "craze". In 2018, reports emerged of governments banning Bitcoin trading and shutting down exchanges.
Facebook announced an outright ban on cryptocurrency advertisements. Banks started blocking credit cards used to trade Bitcoin and other cryptocurrencies.
These developments, in conjunction with Bitcoin's scaling issue, saw the coin dumped by many. People sold their Bitcoins in droves.
According to data from Google Trends, global online searches for “Bitcoin” have tumbled alongside the price since both peaked in mid-December. This data lends credence to the assumption that general interest in the coin has waned.
But is the frenzy really over?
Bitcoin is a fantastic, innovative technology yet to reach its full potentials. Amidst the price fluctuations and clamp down by authorities interesting events are happening in the background.
Like the pro-Frodo warriors in Lord of The Rings, developers are working behind the scenes to improve and finetune this new tech.
The Lightning Network is already alive but is yet to be fully implemented. Another scalability solution- Atomic multi-path paymentsover lightning was proposed this week.
These solutions most likely will cause investors sitting on the fence to jump in, similar to the way the elves joined in at the battle of Helms Deep. When this happens, Bitcoin demand, ergo price, will go bollocks again.
And since newbies are interested first in money, they'll jump in and then we'll have a new different kind of frenzy.
So, the frenzy is not over, yet. It's merely having a nap, or out shopping for new clothes.
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