Undoubtedly, it’s impossible to hear the term “cryptocurrency” and do not remember about Bitcoin. In May 2010, a Florida programmer paid 10,000 BTC for two large pizzas at Papa John’s pizzeria. At that time, Bitcoin was valued at $0.08 per coin. And what to say about the Ethereum price, had you bought when it started, you’d already be a millionaire if not a billionaire.
However, eleven years later, Bitcoin went from an underground dime-valued asset to the spotlight of the financial market. In April 2021, Bitcoin reached its historical price peak of more than $63,000, becoming one of the most valuable assets in the world.
Unfortunately, nothing lasts forever, as the Bitcoin price eventually went down. In this article, you will have a full overview of the crypto market from early to mid-2021.
Chasing the Digital Gold – Is the Bitcoin Run Over in 2021?
Bitcoin is not only the world’s most valuable crypto asset but also the most resilient asset on the planet. In fact, there is nothing or nobody capable of stop bitcoin – neither the coronavirus, Elon Musk, nor China could not break it.
Although many so-called experts have declared the “death of bitcoin” countless times, the “digital gold” remained resilient, especially considering the crypto market crisis in 2017 and the recent – and dramatic- price falls after its all-time peak. The price of bitcoin alone decreased more than 80%, and that was a huge hit.
Looking at the modern financial scenario, there is no other asset to be compared with bitcoin. so far, it has caused a massive conceptual and practical revolution, polarizing opinions, leading governments to take different stands, and breaking paradigms all over the world.
Nowadays, it’s safe to bet on bitcoin’s recovery based on two main factors – the growing institutional adoption of cryptocurrency and bitcoin’s hedging properties.
First, let us take a look into the recent wave of industry-leading companies that adopted bitcoin either as an investment, as means of payment, or for whatever purpose. Among the list of institutional enthusiasts, there are names such as Square Inc., Visa, MasterCard, PayPal, and MicroStrategy.
Yet, why is institutional adoption so important? Because it serves to legitimate bitcoin – as well as other cryptocurrencies – as a solid and valuable form of investment.
Additionally, bitcoin’s peak also gave rise to a huge debate around its hedging properties. Some experts defend that, when compared to gold, bitcoin has much better hedging characteristics. However, the debate is still heated, as volatility is one of the main cons that play against the more enthusiastic approach.
The Rise of Ethereum – The Dark Horse of Cryptocurrencies
If Bitcoin reigned alone for a few years after its inception, things have changed dramatically since then. Currently, there are more than six thousand options of digital assets that can be traded 24/7.
While bitcoin’s success led to its supreme dominance over the crypto market, it also paved the road for new protocols to follow a similar path.
The second-largest blockchain network by both daily trading volume and market capitalization, Ethereum has grown steadily since its birth in 2015. despite bitcoins overwhelming fame, Ethereum is much more innovative and flexible in comparison.
Ethereum was the first blockchain to adopt smart contract technology, a fundamental concept that changed the crypto industry forever. Also, Ethereum laid down the foundation of decentralized finance (DeFi), which opened a gateway for the future of finance.
Highly scalable and much more energy-efficient, the dark horse of cryptocurrencies is now going through a process of transformation. Embracing layer 2 solutions and pos (proof of stake) consensus, the Ethereum network is certainly something to keep an eye on in the next few months.
Also, it’s crucial to note that resilience is one of the main similarities between Ethereum and bitcoin. Launched in 2015, Ethereum’s price spiked to more than $1000 per coin until January 2018.
Nonetheless, the crypto market crisis caused its price to drop to $86 in late-2018, remaining under the $300 mark until the market started reacting positively again in 2020 when the Ethereum price climbed to $730.
In 2021, the ETH price increased to $2000 for a short period in February, subsequently trading above that price in April. however, boosted by bitcoin’s massive performance, it peaked at $4,380 in early May 2021, marking a 500% appreciation since the start of the year.
Currently, the dark horse of crypto is trading around $3,500, which shows a fast-paced recovery when compared to other peers – including bitcoin.
Conclusion
For the rest of 2021, Bitcoin is still going through a period of uncertainty. While its price is slowly bouncing back to its all-time peak, especially with the growing acceptance of bitcoin as a legitimate investment, it’s still too early to make definite assumptions.
On the other hand, it’s easier to see Ethereum prices climbing until Christmas, especially considering the great anticipation and eventual launch of Ethereum 2.0 and the introduction of layer 2 solutions that will certainly boost the network’s efficiency.