Bitcoin is making its comeback; whether it will rise to, or surpass its former 2017 glory is unknown, but the Bitcoin bulls are feeling optimistic.
In the world of technology, where evolution is measured in mere minutes, Bitcoin is rather old as it celebrated its 10th birthday at the beginning of 2019.
It was only in 2017 that it really rose to stardom and became a household name, with stories abounding of people becoming overnight millionaires.
Bitcoin trading fever hit its peak in December 2017/January 2018 when it traded at just over $20,000, but then the house of cards came tumbling down.
The entire crypto world doomsday hit, and the pessimists rejoiced in their predictions of the bubble bursting, while the optimists watched in dismay as hundreds of billions of dollars bled out from the market.
Investors who didn’t get out in time had to cut their losses or play the waiting game as Bitcoin bounced between $6,000 – $7,000 for most of 2018.
Everyone waited with bated breath, hoping that December 2018 would bring some relief, like the previous year, but instead, it got worse and the price dropped further to just above $3,000.
Prepare for Take-off
Then, something remarkable happened in April 2019; the “Bitcoin Phoenix” began to rise from the ashes, breaking through the $4k mark, and suddenly, the entire crypto market surged back to life.
The bullish trend continued into May and by the end of May 2019, Bitcoin had broken the $8,000 mark with no signs of slowing down. Despite all the mayhem of previous years, most people fail to realise that Bitcoin is the most valuable currency in the world, with no other currency even coming close, neither in fiat money nor in cryptos.
Bulls vs. Bears
The question now on everyone’s minds is, where will Bitcoin go next, and will it surpass its record $20,000 in the near future? A search across the web will reveal a multitude of opinions, with some die-hard Bitcoin bulls predicting unimaginable numbers in the hundreds of thousands of dollars for a single Bitcoin.
One of the major factors that most crypto fans were waiting on was a decision by the SEC during May regarding the approval of an ETF proposal by Cboe Global Markets Inc.
Many people believe this will bring in the institutional investors and catapult the digital currency to new stardom, while on the other side of the “digital” coin, some people believe this will be detrimental.
In a recent interview with Bloomberg, Dáire Ferguson, the CEO of AvaTrade, said:
“The approval of an ETF would obviously be a huge thing for the crypto community. There is optimism in the market due to the recent bull run, and that optimism seems to spill over the SEC delays and negate any negative views of hopeful investors. The general feeling is that progress is made every day, little by little.”
Ferguson’s comments were right on the money regarding the delayed SEC decision, which was evident by the fact that almost $80 billion has poured back into Bitcoin in just under two months.
At the beginning of April 2019, Bitcoin held a market cap of $73bn, and on 27 May 2019, Bitcoin passed the $150bn mark.
How to Invest in Bitcoin
Some of the biggest challenges that remain around Bitcoin is how to trade Bitcoin and how to invest in Bitcoin. The traditional physical purchasing through exchanges, setting up a wallet and transferring the Bitcoin to the wallet is still overwhelming for many.
The other issue is, with so many stories of hacking and theft, there is certainly a level of trepidation for new Bitcoin traders and investors. This is why trading Crypto CFDs is growing in popularity.
CFDs allow investors to take part in the crypto market and to capitalise on the market movements without all the complexity, plus traders can even take advantage of leverage with limited capital to make excellent returns.
Bitcoin in South Africa
There is no doubt that the blockchain technology that powers Bitcoin has a bright future and has huge potential, especially for many third world and emerging economies, whose fiat currencies are extremely volatile and/or lack advanced banking systems.
One country that is starting to embrace the technology is South Africa. In fact, Tumelo Ramaphosa, son of the newly elected president, Cyril Ramaphosa, has been spearheading various initiatives. In 2018, he organised the Unlocking Blockchain Africa Conference, and he plans to launch the first Blockchain focused university.
Bitcoin in 2019
While Bitcoin and other cryptocurrencies continue to find their feet, and uncertainty remains around future regulation or adoption by governments and institutional investors, there are massive opportunities to capitalise on daily.
There is no doubt that crypto CFDs are a great way to get involved in this growing sector; so, as the old saying goes: “Make hay while the sun shines” or should we say: “make digital hay while Bitcoin shines.”