While everything in the world ground to a halt in 2020, Bitcoin was unstoppable. The news of a return to its $21,000 all-time high was a welcome pandemic surprise, which came early than anticipated. However, the best was yet to come. Bitcoin ended 2020 in style as the best performing asset of the last decade.
The digital currency solidified its status as the gold standard for the industry. For too long, investors had moved reluctantly to invest in Bitcoin, while those who did, did it at a snail's pace. As some waited for this or that to happen to jump off the Bitcoin bandwagon, BTC got its act together to surprise many.
When highly respected voices in the business world said to stay away from Bitcoin, people who still send their nephews and nieces $20 gift cards listened. Now, the same people are seeing their gift cards used by TikTok kids to buy the digital currency.
Bitcoin isn’t simply riding the wave of popularity that favors the digitisation of money transfer, and it is the digital currency that created the wave. The future of money is digital, decentralised, and open-sourced. While it’s still far from the standard, the more people buy into Bitcoin, the better for everyone, as 2020 proved.
What Happened in 2020?
Anyone yet to buy into the Bitcoin movement would like to forget the year 2020. The year that would go down in history as the lockdown year was the most important yet for Bitcoin. Bitcoin tripled its price in 2020, ending the year at a new all-time high.
The price of Bitcoin at the start of the year was around $7000, a far cry from its all-time high (around $21,000). Even though many people across the world over viewed Bitcoin as a sophisticated gold-like asset, it wasn't playing out as they had hoped.
There are a lot of possible catalysts for Bitcoin’s surge in 2020. Some say it could have been the interest of big-name investors and institutions, while others say it's the stimulus checks that found their way into the Bitcoin ecosystem. Whatever the case, Bitcoin has showcased a growth of 6 million percent since 2011.
Back then, in 2011, Bitcoin made its first significant move by rising over $1. At this point, people had just started to take digital currency seriously. It was widely used as a currency in the dark web marketplace, Silk Road. From the dark web to Wall Street, Bitcoin has made an incredible journey. It was once used as a medium of exchange for illegal, black market goods. Now billionaires, institutions, and corporations are buying Bitcoin as a hedge against inflation.
Bitcoin has grown in value to around $30,000. The six million percent growth translated to around 200% annualized returns, which out-performs the Nasdaq 100 by a factor of 1:10. It is the equivalent of investing in Google, Amazon, or Apple early.
The Bitcoin community is feeling upbeat about 2021 and beyond. Many feel strongly vindicated with the strong performance in 2020, some floating new, sometimes outrageous, projections for what is in store for 2021.
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