In the first week of August 2020, crypto markets saw bitcoin surge to $12,470 per bitcoin, after a couple of shaky months. However, it was a short-lived glory with it trading at $10,178.84 at the time of writing, seeing a 2k drop. The big question is, will it see a magnificent upsurge soon against all odds?
Bitcoin is behaving like disruptive internet-based technologies, including Amazon and Google, just as they were coming up. These internet-based companies experienced limited adoption, then market excitement, and then a massive crash before the final bloom. From the trend between the internet and bitcoin denomination, analysts suggest its time for Bitcoin’s last boom.
Nascent Internet‘s Limited Adoption Similar to Bitcoin
Internet-based industries experienced limited adoption during their establishment. In 1997, only around 2 % of the world population had access to the internet. However, the number of people with access to the internet is increasing. Last year, 2019, 54 % of the world population were using the internet.
On the other hand, the adoption of bitcoin technology is still slow. Statistics estimate crypto users to be about 1 to 2 %, accounting for 75-150 million people worldwide. Today, bitcoin and other cryptocurrency incorporated projects are in the limited adoption stage. There are some use cases of bitcoin technology; however, it is yet to accomplish mainstream adoption.
Nevertheless, some world regions are broadly adopting bitcoin. For instance, in the US, over 11% of its population are crypto users. Bitcoin analysts suggest that bitcoin adoption is likely to grow globally, starting with the developed countries, just as it happened with internet adoption.
Excitement, Massive Crush, then Bitcoin Surge?
The NASDAQ, internet firm, eventually experienced a great wave of investment. This market excitement got driven by venture capital firms and investment banks. The Internet, at last, became apparent, and its adoption surged. The valuation of the internet-based industries skyrocketed.
However, most internet-based industries were unable to raise profits and revenues. The situation led to a significant crash for the internet-based companies because they failed to pay their debts. Eventually, the internet got realized globally, and now seven of the top ten giant companies in the world are internet-based. NASDAQ finally boomed and is currently five times better than it was before its massive crash.
Just like NASDAQ, the cryptocurrency sector also experienced market excitement. The rise of ICOs played a huge part in bitcoin;s market excitement. ICOs launched in 2013 but became famous in 2017. During that time, a lot of people started to invest in bitcoin technology.
In 2017, there were 6000 ICOs that raised $ 120 billion. At that time. Bitcoin with other cryptocurrencies surged in price. In the same year, 2017, bitcoin experienced a major crash as many scams and frauds emerged. It is currently seeing the same trend, which could mean an explosive future.
Today, Bitcoin focuses on doing away with all the frauds and the projects that are not strong. By doing so, the Bitcoin industry hopes to attract investors to access tremendous opportunities. The cryptocurrency industry is also hoping for the bitcoin surge soon.