How Popular is Bitcoin in 2023?
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The stage is set for a lot of exciting developments in the world of blockchain and cryptocurrencies in 2023. And of course, at the center of this stage will be Bitcoin, having set the precedent for all other cryptocurrencies by becoming the first of its kind to achieve greatness.
Even though there are better projects out there, the market as a whole moves in the same direction as Bitcoin. Most of the time, it still holds true, but in 2023, there may be a startling shift in this tendency.
Let’s examine what developments we may anticipate for Bitcoin and the market in general in 2023.
A Brief History of Price Movements
It’s 2023 and the popularity of Bitcoin is off the charts! Thanks to its decentralized, secure, and fast nature, Bitcoin has become the go-to cryptocurrency for many people. And it’s not just individual users - businesses around the world are taking advantage of Bitcoin, too.
From online retailers to banks (Although many of them prefer Ripple), more and more companies are accepting Bitcoin as a form of payment. This is leading to an increase in its value, as more people are joining the Bitcoin network. As a result, more investors are turning to Bitcoin as a way to diversify their portfolios and make a profit.
Under the surface, the cryptocurrency market has been influenced by a wide range of variables throughout the history of Bitcoin values, making it a complicated and varied field. Nevertheless, to better predict the events that will occur in 2023, it is necessary to look at the historical patterns.
Here is a brief overview of some of the key events and trends that have shaped the cryptocurrency market over the years:
- The first cryptocurrency, Bitcoin, was created in 2009. Its price remained relatively stable for the first few years, with a few small spikes and dips.
- In 2013, the price of Bitcoin began to rise significantly, reaching a peak of around $1,000 in late 2013 before crashing back down to $200 in early 2014. This was largely due to speculation and hype surrounding the cryptocurrency.
- In 2017, the price of Bitcoin and several other cryptocurrencies experienced another significant surge, reaching all-time highs and attracting widespread media attention. This was fueled in part by the introduction of initial coin offerings (ICOs), which allowed companies to raise funds by issuing their own tokens.
- In 2018, the cryptocurrency market experienced a significant downturn, with the price of many cryptocurrencies falling dramatically. This was due in part to regulatory uncertainty and the actions of some ICOs that turned out to be fraudulent.
- In 2019 and 2020, the cryptocurrency market saw a steady recovery, with the price of some cryptocurrencies, such as Bitcoin, returning to more stable levels. This recovery was driven in part by increased institutional interest in the cryptocurrency market and the adoption of blockchain technology by several major companies.
- In 2021, the price of Bitcoin and some other cryptocurrencies experienced another significant surge, reaching new heights once again. This was due in part to increased institutional adoption and newfound interest shown by high-profile figures such as Elon Musk.
Overall, the history of cryptocurrency has been marked by significant price fluctuations, with many different factors influencing the market dynamics. These include economic conditions, regulatory developments, and investor sentiment, among others.
Ethereum May Surpass Bitcoin
Bitcoin has remained the undisputed king of the cryptocurrency realm for quite some time now. But is that really fair, considering that the use cases and utility of Ethereum far outweigh anything that Bitcoin has to offer? Turns out, it isn’t, and the market is catching up fast to this reality.
Ethereum may surpass the market value of Bitcoin, at least temporarily, in 2023. The two cryptocurrencies are often correlated, meaning that they tend to move in the same direction, but this trend may reverse due to new economic developments.
Bitcoin is perceived as a scarce commodity which partly explains why it has a market cap of 21 million tokens, but it has relatively low utility as compared to Ethereum, which averages more than one million transactions per day and has generated $3.8 billion in revenue from decentralized application development over the past year alone. Ethereum may, therefore, be the more valuable cryptocurrency when compared to Bitcoin.
Champions of Ethereum believe that this is long overdue, and the market’s unshakable and naive belief in Bitcoin is finally shifting as more and more people become educated about the blockchain and realize that Ethereum and others are far better than Bitcoin.
Bitcoin Will Lose to Gold
The price of Bitcoin has reached a recent bottom in 2022 at $17,000, whereas just 2021 it hovered above $70,000. Sure, the end of a bull run sees a sharp decline in prices, but this sharp? Even the most enthusiastic Bitcoin and cryptocurrency lovers have rolled back their predictions for extremely bullish outcomes in 2023.
There may be a 30% increase in the price of gold in 2023, according to Robertsen, as Bitcoin’s value continues to decline and more cryptocurrency firms experience liquidity issues and investor withdrawals, leading to a rise in speculation of gold being a safer asset to hold.
This increase in the price of gold may also be influenced by negative correlations between equity and bond prices. Saxo analysts also predict that the price of gold could reach a level of $3,000 in 2023 due to global economic conditions, including the current global “war economy” and various insecurities brought about by the pandemic and other events.
The global recession is quite inevitable, and if and when that happens, it will be a long time before investment behavior turns back in favor of extremely risky investments such as cryptocurrencies.
A Farewell to Meme Coins
It is also high time that we say goodbye to two of the most popular meme coins in cryptocurrency history: Dogecoin and Shiba Inu. Their rise in value was extremely ridiculous. Dogecoin gained a 20,000% rise in six months, and Shiba Inu gained a whopping 121,000,000% surge in just 10 months.
However, this rise in value doesn’t come with any real value addition. The Doge meme has been around for a long time, and at the peak of its popularity, Dogecoin was launched in the market. The popularity of the meme helped Dogecoin gain a lot of traction. Shiba Inu profited from Dogecoin’s popularity, and their respective prices rose.
Matters got truly out of hand when one of the richest men in the world, Elon Musk, started championing Dogecoin. Musk already had his own cult of personality followers, and when they also hopped on the bandwagon, there was an exponential increase in value.
However, both coins have already lost 90% of the value increase they saw earlier. Chances are, they’ll keep losing this inflated worth further and eventually die out. For those who poured their life savings into these coins, this news is heartbreaking.
If you bet on a project based solely on its social media traction and popularity and not its fundamentals, you can lose out the moment the big players start cashing out. To those who made their money and left, congratulations! To those who are stuck, there does not seem to be a way out.
The Fundamental Why
We will now turn to the most fundamental question that is on everyone’s mind in 2023. Blockchain technology has been around for 13 years now and its adoption is not without challenges. Everyone agrees that it is a better way to perform financial transactions as it is cheaper and more secure.
And in more and more countries, people start to use crypto and Bitcoin.
Moreover, the transactions are immutable, the blockchain is decentralized so no institution can corrupt it, and so on. And yet, cryptocurrencies have failed to make any significant impact on our daily lives, except to have a small impact on our investment behavior so far.
The answer is quite simple. When Bitcoin, the first cryptocurrency that saw any real traction, came around, it was supposed to be a peer-to-peer electronic cash system. It was intended to serve as a method of payment that surpassed conventional financial systems. However, it did not have any real value, because it was not supported by any government that would back it up.
Thus, cash had to go in for its value to increase, or for it to have any buying power. The fundamental problem with that working mechanism is that a currency should have, more or less, a consistent value. Bitcoin saw massive spikes in value, and massive downturns too, which eventually turned what looked like a budding start in the international money market into mere commodification. People started using it as a “store of value”.
Simply said, today people do not buy cryptocurrency so that they can use it to buy other things; they acquire it in the hopes that it might increase in value and that they might profit from it. The day this dream of speculative profiteering and perceived value dies, so will the future of cryptocurrencies.
The current state of the economy has left people extremely doubtful of putting their money into cryptocurrencies. The future of Bitcoin as well as all other cryptocurrencies looks uncertain, so before making an investment, we advise you to consult with experts.
The editorial content of OriginStamp AG does not constitute a recommendation for investment or purchase advice. In principle, an investment can also lead to a total loss. Therefore, please seek advice before making an investment decision.