WATCH: The rise of cryptocurrencies, could this be the start of another bull run?
CAPE TOWN – We have been experiencing one of the longest bear markets the cryptocurrency space has seen, longer than what we witnessed in 2013.
As the markets have caused a great deal of uncertainty as a result, many investors have unfortunately caused a major panic in the ecosystem. As expected though, there seems to be indicators that the next bull run is beginning with the recent price hike of Bitcoin.
From its all time high’s in December 2017 of $20 000 (R284 000), to it’s low point of $3 300 early 2019, Bitcoin is seemingly making a comeback as it surges past the $6 000 mark as of 10 May 2019.
Richard de Sousa, partner at one of the largest and oldest cryptocurrency exchanges in the country, AltCoinTrader says: “Recently we have seen the Bitcoin price increase for seemingly no apparent reason. What we have, however, seen for the past five years, is that thousands of people have adopted Bitcoin and have been dedicating time to the growth and expansion of the network, building platforms and silently working behind the scenes. The technology is constantly being enhanced and as a result we have seen the price increase in the last three months because all of the foundations are in place.”
As with any new technology, it needs time to mature.
As millions of technology experts throughout the world are working on projects in this space, it is inevitable that the price will start to increase as more and more people dedicate and work on the fundamentals of Bitcoin.
De Sousa says: “Recent reporting of general media on the cryptocurrency topic has been driven by hype and sensationalism, it doesn’t give a true reflection of the work that experts are putting in behind the scene on the technology.”
Technologies like this take between 10 and 20 years before they see major adoption and as Bitcoin is currently in its 10th year of existence it seems to be on track as expected and the growth is very healthy and sustainable.
There is an expectation of the price continuing to rise in the future, with a few price corrections along the way as we have experienced historically. Constant hype in the marketplace for any type of main event or news cause an unsustainable bull run, with price corrections following shortly afterwards.
Sustainable growth is far more healthy for the ecosystem for its long term growth.
De Sousa concludes: “In 2018, we saw an unprecedented number of bitcoin wallets being created, nodes coming onto the network, and more transactions recorded in this space. The growth has continued in 2019 with this trend. Every single metric is growing, the price however is trailing behind and it’s only a matter of time before it catches up with the growth in the network.”
BUSINESS REPORT ONLINE