Crypto

Bitcoin Turns 13—Industry Experts Share Thoughts

Bitcoin has become the first digital currency to enter teenage after turning 13 on January 03, 2021.

While Satoshi Nakamoto, the pseudonym used for bitcoin’s creator or creators, issued the whitepaper on October 28, 2008, many believe the cryptocurrency’s mint date of January 3, 2009, is the cryptocurrency’s birthday.

“Bitcoin has been the basic pillar underpinning the rise of cryptocurrencies and blockchain around the world,” according to Edul Patel, CEO and Co-founder of Mudrex.

Satoshi Nakamoto’s birthday is January 3 since it was on this day that he published the first block, which is now known as the Genesis Block. The first blog contains the initial 50 Bitcoins.

“Unlike any of the 500,000 blocks that followed, Nakamoto included a message in the block’s code,” said Raj A Kapoor, Founder of India Blockchain Alliance. “The very first transaction took place in May of 2009.”

“Satoshi never explicitly explained the significance of the statement,” he continued, “but many have interpreted it as a reference to why Nakamoto created Bitcoin: to eliminate banks and middlemen and assure transparency.”

Bitcoin’s 13-year journey has been a roller coaster ride. Throughout the process, the digital asset has gained a large number of ardent supporters as well as a number of powerful skeptics and critics.

Investors have been putting their faith in the league of cryptocurrencies because of Bitcoin’s legacy and comparatively long history.

Bitcoin So Far

Bitcoin’s Global Acceptance

Morgan Stanley became the first A-list US bank to offer access to Bitcoin funds after wealthy clients ‘demanded’ exposure. The investment firm introduced three funds that allow bitcoin ownership.

El Salvador, a Latin American country, became the first to accept Bitcoin as legal tender in 2021. El Salvador’s law permits Bitcoin to be used to pay for products and taxes. Capital gains tax will not apply to exchanges.

In October 2021, the ProShares futures-based bitcoin ETF ‘BITO’ had its market debut on the New York Stock Exchange under the symbol ‘BITO.’

Bitcoin touched $1 Trillion Market Cap

Bitcoin became the first crypto asset to reach a market capitalization of $1 trillion in February 2021, thanks to increased interest from institutional and retail investors.

Elon Musk, the world’s richest man, and his firm Tesla, along with Square and MicroStrategy, have all backed Bitcoin.

Bitcoin’s Return Over the Years

It’s nearly impossible to assess Bitcoin’s returns since its beginning because it started with a price of zero. Its price rose to $0.09 in July 2010 and peaked at $68,790 in November 2021.

Bitcoin is a perfect example of a rags-to-riches narrative, with an incredible return of 7,64,33,233 from its lows to all-time highs. In November 2021, a Rs 1,000 investment would have grown to Rs 76.43 crore.

Bitcoin has died and been born thousands of times in the previous 13 years, according to Hitesh Malviya, founder of itsblockchain, and is still thriving for its existence.

“We’ve witnessed a tremendous shift in the type of bitcoin investors in the last two years,” he continued. “At this moment, institutional investors are more interested than retail investors due to the lower expected future ROI, while retail investors have lots of other options in the market.”

Even now, the crypto behemoth has generated a return of more over 5,12,00,000 percent in 2021. On Tuesday, the worth of Rs 1,000 would have been more than Rs 51.2 crore.

Total Supply

The entire supply of Bitcoin has been set at 21 million, which means that no more than 21 million Bitcoins will ever be mined. However, Bitcoin’s total supply is 18,919,318 units, or 90% of the total theoretical supply.

The first 90% was mined in 12 years, but the remaining 10% isn’t scheduled to be extracted until February 2140. Miners can continue to earn Bitcoins till then.

The creator of Bitcoin, according to Praveen Kumar, founder and CEO of Belfrics Group, will be pleased to see the asset develop to a massive market capitalization.

Despite the fact that Bitcoin did not destroy banking systems as its founder had hoped, he noted, it has firmly established itself as the asset of the century.

Bitcoin Hashrate at ATH

According to data from cryptocurrency analytics site BitInfoCharts, the Bitcoin hash rate reached an all-time high of 203.5 exahashes per second. When evaluating the strength of a blockchain, hashrate is an important measure to consider.

Based on the number of active miners, the hash rate correlates to the network’s strength. The total amount of computer power needed by miners to create new Bitcoins is represented by this number.

However, as China barred citizens and enterprises from participating in crypto mining and trading, the hashrate dropped temporarily. China’s complete prohibition on cryptocurrency has resulted in a sudden scarcity of miners.

It has evolved from a speculative asset to a safe haven asset. Bitcoin has come a long way, according to Mudrex’s Patel, from being swapped for a box of pizza to being used to grant citizenship to a country.

What Industry Leaders Are Saying?

We compiled birthday wishes from industry players to commemorate the Bitcoin network’s 13th anniversary. Bitcoin (BTC) has officially entered its adolescent years, with a hash rate all-time high, and industry experts weigh in on its future.

Rich Rosenblum, founder of GSR Markets:

“It’s fitting that Bitcoin is having its bar mitzvah today.” Its first full year with an ETF, as well as widespread participation and adoption, will be 2022. “Congratulations!”

Marc Yaklofsky, head of communications and public relations at Genesis Global Trading:

“There is an old Japanese proverb that says, ‘Beginning is easy, continuing is difficult.’ The journey to change the world has only just begun.” Bitcoin, keep going! ”

Ian Kane, co-founder and CEO of Unbanked:

“Its development transcended time zones, borders, and governments — and financially empowered millions of people all over the world.” It is a testament to human ingenuity and the fact that one person (or group of people) anywhere in the world can create something with a far-reaching impact. As everyone moves toward a Bitcoin standard, the next 13 years will be even more influential than the last.”

Laura Vidiella, business development strategist and former vice president of institutional sales at Paradigm:

“In 2022, the BTC ecosystem will continue to see increased growth in terms of products and capital.” With the increased availability of derivatives and structured products, traditional entities are deploying more capital by investing in yield-generating strategies with which they are familiar.”

Hassan Bassiri, vice president of portfolio management at Arca Funds:

“BTC is the gateway drug that showed everyone how valuable digital assets can truly be.” We can expect more entrants, research, and opportunities with other currencies and blockchains as the BTC ecosystem grows and becomes a more productive asset in terms of lend/borrow and yield.”

Beimnet Abebe, vice president of principal trading at Galaxy Digital:

“Bitcoin was released 13 years ago. Although it was created with little fanfare, attracting only a few esoteric coders’ attention, its release would prove monumental, allowing anyone, anywhere in the world, to access digitally scarce money for the first time and opening the door to protocols that would go on to power the next iteration of the web.”

Meanwhile, El Salvador’s president, Nayib Bukele, a Bitcoin supporter, predicts that BTC will surpass $100,000 this year.

Will Bitcoin Hit $100,000 This Year?

Central bank policy is playing a crucial part in the debate regarding the prospects for tokens in 2022, after a hawkish move by the Federal Reserve knocked some steam out of cryptocurrencies at year’s conclusion while largely sparing other risk assets.

To what extent will the Fed under Jerome Powell tighten policy to combat inflation? According to some observers, the answer to that issue will help determine whether Bitcoin will follow up its 60% rise in 2021 with another strong year.

Another school of thought contends that if corporations such as Meta Platforms Inc. (previously Facebook) and Apple Inc. push deeper into the metaverse and consumers continue to invest in non-fungible tokens, crypto will rise regardless of macroeconomic forces. Consider the $69.3 million sale of an NFT painting at Christie’s last year, or the loosely organised group of crypto investors that battled billionaire Ken Griffin at an auction for a copy of the United States Constitution.

As of 9:52 a.m. in Hong Kong on Tuesday, bitcoin was trading at roughly $46,100, up around 0.2 percent on the day. In this article, four market watchers outline their predictions for the token and the broader crypto ecosystem in 2022:

Bullish Bitcoin Technicals

Katie Stockton, founder and managing partner of Fairlead Strategies LLC, said in an email,

“Based on our long-term trend-following gauges, we are bullish on Bitcoin in the long term. We anticipate that the long-term uptrend will continue, and that a more decisive breakout to new highs would allow for an impressive measured-move projection of around $90,000. For the time being, a corrective phase is in place, though there are signs of short-term downside exhaustion.”

The Fed and the Metaverse

Antoni Trenchev, managing partner of crypto lender Nexo, said in an email,

“Central bank policy will be the most influential factor for Bitcoin and cryptocurrencies in 2022.” Cheap money is here to stay, which has huge implications for crypto,” because “the Fed lacks the stomach or backbone to withstand a 10%-20% drop in the stock market, as well as an adverse reaction in the bond market.”

Trenchev expects a bumpy ride in 2022, but believes Bitcoin will hit $100,000 by the end of June. He also expects tokens like Solana and Avalanche to face the same scaling challenges that Ethereum and other older protocols did in 2021, rather than “these upstarts — awash with arrogance, attitude, and funky narratives — to face the same scaling challenges that Ethereum and other older protocols faced.”

He wrote,

“The metaverse is what I’m most excited about in 2022.” The ‘birth’ and application of the term metaverse is a beautiful mess with a lot of potential. It will be one of the year’s overarching themes: the metaverse, infrastructure development, and then the NFTs that will make up a portion of the economy there.”

The Skeptic

Jeffrey Halley, senior market analyst at Oanda Asia Pacific, in an email, said,

“Although I expect speculative zeal in the crypto space to continue, it, like bloated technology valuations, will face a much more challenging environment in 2022.” The primary reason is the Federal Reserve’s start of interest-rate normalization, but other major central banks are likely to follow suit. That will call into question crypto’s raison d’être as an alternative to fiat money.”

Halley said,

“The threat of more regulation hangs over the crypto space, and frankly, with a new coin coming out every week that is ‘the next big thing’ and driven by speculation rather than blockchain, I’m struggling to see how any of them will be.” I continue to believe that cryptocurrencies are the most egregious example of financial-market groupthink in history. The music may continue to play for the rest of 2022, but the emperor still isn’t dressed.”

Awaiting an App Store

Philip Gradwell, chief economist at Chainalysis, in an email, said,

“The race to become the crypto app store is on.” Consumers love platforms, which was a major takeaway from Web 2.0, and I don’t think that will change for Web 3.0. There is currently no cryptocurrency platform that owns the customer relationship and aggregates suppliers. I predict that many companies will race to build this platform by 2022, with Coinbase leading the way because it integrates DeFi and NFTs.”

Sum Up!

At the time of writing, BTC was trading at $46,600, down from $47,000 at the start of the year. You can’t deny that the asset has come a long way in terms of acceptance and security, whether you’re bullish or bearish on it.


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