Who wouldn’t like to have absolutely free tokens of startups, which may potentially become in demand in the market. So it would be great if you could earn on them without spending a penny. Does it not sound quite believable? Do not worry, we want to reassure you, this is really a common practice, which benefits both ordinary users and organizers of ICO startups.
In this article we will take a closer look at what the airdrop and bounty campaigns are, what you need to get cryptocurrency for free and why it is beneficial for all parties.
Contents: (please click the topic to scroll down to it)
1. Free distribution of tokens, what is it and who benefits from it?
“Advertising is the engine of progress.” Little-known projects, the purpose of which is to attract new users, are happy to distribute their tokens for performing certain tasks. Getting popularity, creating your own community is the key to the success of any startup. ICO requires huge amounts of money on advertising which can be using completely different ways. Methods of promoting companies with the initial coin offering are numerous, we will not review all of them today. Let’s analyze two of the most effective ones, namely:
2. Free tokens during an ICO bounty
ICO bounty is a loyalty program that is conducted by new startups to popularize their currency. Developers go to such steps in order to find people for delegating certain tasks. ICO bounty is currently conducted by an absolute majority of projects that wish to release their own product. This method of promotion helps to collect a certain amount of money for a full-scale launch.
They have identical conditions for everybody willing, as well as a strict deadline. The development team can announce bounty either before the fundraising starts or directly in the process.
3. Free tokens during an airdrop
Airdrop is the second most popular method of attracting new users to startups. During an airdrop, the development team provides free tokens absolutely for everyone, for this you just need to register in the project and make a couple more clicks of the mouse. For developers such advertising is shareware, if the project succeeds, then participants will be able to sell their tokens on the exchange. The “word of mouth” spreads information about the project from user to user.
In order to earn on airdrops, you must have a minimum set of tools:
active account on Bitcointalk;
accounts in social networks (Facebook, Twitter, Telegram, etc.)
4. What do I need to do to get free tokens?
Now let’s take a closer look at what actions need to be taken in order to obtain free cryptocurrency. You can earn a much larger number of tokens on bounty projects, but there isa lot of work to be done there:
translation of texts into different languages in order for the project to enter different markets;
keeping branches at specialized forums;
creating a unique design;
active PR project using different tools.
Bounty payments are usually made only after the end of the campaign. The number of tokens credited is directly proportional to the volume of work performed.
Earning during an airdrop will require a minimum amount of time, but you need to understand that the payments for this will be corresponding. You will need to:
register on the startup resource;
subscribe to the official pages of the project (Facebook, Twitter, Telegram, etc.);
make reposts in social networks;
pass a short survey and enter your correct contact details and ETH wallet number.
Anyone can receive free coins, it is necessary to perform certain actions for this. The final earnings directly depend on the complexity and time spent. If you simply register or make a repost in social networks, you can hardly count on a significant number of coins.
There have been cases when people participated in truly revolutionary projects that changed the cryptocurrency industry, without even knowing it. Thus, their tokens have grown in price by hundreds or even thousands of times over several years. For example, having earned 1000 ETH in 2014 for actively participating in the development of the project, it would now be possible to exchange them for half a million dollars, and if sold at the peak in the January of 2018, this amount would be three times more.
Earnings on bounty and airdrops are possible, but require careful selection of smart projects that can become profitable and bring profit in the future.
Recently, the interest of potential investors to new ICOs projects has faded away a little. It is explained by the fact that the cryptocurrency market has been in the downtrend for more than a year. But despite this, a huge number of new cryptocurrency projects constantly appear on the market. In order to have a convenient opportunity to look at the list of all current ICOs in one place, there have been created special aggregator sites, they are called ICO trackers. In this article, we will talk more about these services, learn about their advantages, disadvantages, and also provide you with a list of the most authoritative sites.
1. What are ICO trackers
So, as it was mentioned above, ICO trackers are specialized services that publish the necessary information about large ICO projects. It is possible to see lists of upcoming, existing or already completed projects on such resources. The main goal is to provide basic information to potential investors. On some of these sites, you can find not only the roadmap of a specific ICO but also its detailed analysis.
The staff of such services is doing a great job, which is aimed at studying the strengths and weaknesses of the blockchain ICOprojects. As it is known, a huge number of scammers are concentrated in this area, for this reason, ICO trackers help potential investors navigate this dangerous market.
To understand the principles of such services, let’s take a closer look at the criteria by which projects are evaluated:
Risk. In order to compile an estimate for this parameter, the following data is studied: publicity of the development team, White Paper, availability of a test work product, the reputation of consultants and partners, etc.
HYPE. This criterion is counted by calculating the number of subscribers on the project pages in social networks, the frequency of its mentioning in the media, search results, etc.
Basic report. To evaluate this criterion, the following aspects are closely studied: the innovativeness of used technologies, the presence of its own blockchain, advantages and disadvantages, prospects and possible development options.
Investment Rating. According to the analysis, an expert forecast of the future of the project is provided.
All these factors help investors to get comprehensive information about a particular ICO and decide whether to invest their money in it or not.
2. Strengths and weaknesses of ICO trackers
ICO trackers are not perfect and they also have their own advantages and disadvantages.
Providing basic information about the latest ICO.
Compilation and provision of project analysis, which significantly saves time for potential investors.
Listing scam projects.
Not all services consist complete information about a specific project.
The information provided on the ICO tracker cannot be trusted 100% since such services cooperate with many projects as advertisements. This may mean that published information about a specific ICO may not be objective. For this reason, before starting the ICO funding, it is better to study it yourself.
3. Who needs ICO trackers?
Such services are actively used by investors, people who themselves conduct crowd sales, as well as all other users who are simply interested in this industry. A huge number of fraudsters are concentrated at this market. But despite this, there are really worthwhile projects that can give real profit to their investors, even in such a market. For a non-professional investor, it is quite a difficult task to find such an ICO. Therefore, investors use similar services to obtain key information about recent ICOs.
It should be noted that startups themselves are very willing to use ICO trackers because, such services are an excellent marketing tool for them.
4. List of popular ICO trackers in 2019
Recently, a sufficient number of ICO-trackers have appeared on the market. Each service has its own approach and its own criteria for evaluating new ICO coins. It is possible to find detailed information about ICO projects on larger sites, and some services simply publish WP with a link to the official project resource.
Here is a short list of popular and current ICO trackers in 2019 (according to the rating for 2018).
There are many scammers on the ICO market, lists of which can be found on specialized services – ICO trackers. Such sites allow investors to obtain key information about ICO projects.
These are certainly very useful services, but it is important to remember that ICO trackers are not the last resort, so before investing money in a certain project, it is better to search for information about it on the network.
Cryptocurrency and ICO regulations have been an open topic in Europe for quite a long period of time. Some finance regulators claim that it is high time the European Commission determined the place of crypto and ICO in European economy.
The European Banking Authority (EBA) stated that the current crypto asset-related activities did not comply with the EU financial laws, so that The EBA urged the EU to look into the crypto rules and identify what actions may be required at the EU level.
“The EBA’s warnings to consumers and institutions on virtual currencies remain valid. The EBA calls on the European Commission to assess whether regulatory action is needed to achieve a common EU approach to crypto-assets. The EBA continues to monitor market developments from a prudential and consumer perspective.”
Moreover, the EBA advised to use the FATF’s recommendations. The Financial Action Task Force (FATF) is to issue a set of recommendations for crypto-related action in June 2019.
Another finance regulator, which supports the EBA, is the European Securities and Markets Authority (ESMA). It released a report which helps the authorities of the EU to make decisions on rules applied to crypto and ICO.
The spokesman of the ESMA said:
“Our survey of NCAs highlighted that some crypto-assets may qualify as MiFID financial instruments, in which case the full set of EU financial rules would apply. However, because the existing rules were not designed with these instruments in mind, NCAs face challenges in interpreting the existing requirements and certain requirements are not adapted to the specific characteristics of crypto-assets.”
Appearance of Bitcoin has marked the beginning of a new era in development and dissemination of money. 2018 became a crucial point for cryptocurrencies. In this article we will talk more about Bitcoin mining, find out what is needed and how to earn from it.
1. What is Bitcoin mining?
BTC mining is carried out with the help of specialized computer equipment, so-called Bitcoin farms. In order to open a new block, the miners resolve complex mathematical problems, for which the network rewards them with X number of coins.
Bitcoinalgorithm is designed in such way, that every 210 thousand blocks the reward decreases exactly by twice. At the very beginning, miners received 50 coins for each new block, then this number was reduced to 25, and now this value is 12.5 BTC.
2. What are the ways to get Bitcoins?
Bitcoin is the most popular cryptocurrency in the world, many people would like to become its lucky owner. Here are some ways to do it:
– Bitcoin faucets. This is an absolutely free method to get coins. It lies in performing various simple tasks, such as decoding and entering captchas, clicks on advertising links, browsing advertisers` websites, etc. This work is absolutely simple, but it requires patience. We want to remind you, that reward for such work is purely tokenistic and it is not possible to earn decent money from Bitcoin faucets.
– Mining. This method means investment into equipment. It can be completely different: you can organize home miningon graphics cards spending 2-3 thousand US dollars on it, or you can build a huge data center by investing hundreds of millions of US dollars into this enterprise. Thus the income should be directly proportional to the initial investment. Unfortunately, today cryptocurrency is so volatile that it is impossible to calculate how much profit Bitcoin mining will bring in 2019.
– Salary in crypto. Nowadays, the fact of getting salary in cryptocurrency is no longer supernatural. Yes, it is still uncommon, but it is far from single instance.
– Purchase. The most obvious way to get cryptocurrency is to purchase it. Nowadays, you can buy Bitcoin using a large number of services (exchanges, currency exchange offices, individuals, etc.).
3. What is needed in order to start BTC home mining ?
In general, this is rather a broad theme, but in this article we will only briefly run through the main points, without which home mining is impossible. So you need to:
Buy equipment for mining (graphic cards or ASIC miners).
Create a Bitcoin wallet. Without this it will be impossible to get coins.
Select a mining pool. Nowadays the hash rate (total computing power of all the miners) of Bitcoin network is really huge, that is why the algorithm constantly increases its overall complexity. This is why it will be very difficult for one miner to open a new block even with sufficiently powerful equipment.
Install a special software for mining.
Follow the process and, if necessary, repair or replace the components.
You should also remember that mining equipment (especially ASIC-miners) make a noise and heat up while working, therefore installment of farms in a residential house is not a good idea.
4. What is cloud mining?
There is another way to start mining Bitcoins. This is a cloud mining. It does not involve physical contact of person with equipment. A user buys a certain amount of computing power at a large data center and immediately starts to get income from it. So, how is it better to mine Bitcoin, on your own or using cloud? Everyone will find his own answer. Definitely, profit of home mining will be higher, but cloud mining will ease your pain associated with farm maintenance. Someone is willing to pay for his or her comfort, but another one would prefer to do everything by independently, therefore, everyone decides on one’s own.
5. Which video adapters work best for Bitcoin mining?
Each particular video adapter has its own payback period, which directly depends on what is happening on the cryptocurrency market. 2019 has just started, so here is the list of the most cost-effective video adapters for BTC mining in 2018:
NVIDIA GTX 1080 TI.
NVIDIA GTX 1070 TI.
NVIDIA GTX 1070.
RADEON VEGA FRONTIER EDITION.
RADEON RX VEGA 56.
RADEON MINING RX 470.
NVIDIA P106-100 (GEFORCE GTX 1060).
6. How to calculate Bitcoin mining correctly?
Bitcoin rate is very volatile, network hash rate is also unstable, so, it is almost impossible to calculate exactly the mining profit. But there are convenient calculators which will help you to find out at least approximate numbers.
7. What does BTC rate depend on and what will happen next?
Bitcoin price varies in the trading range of USD 4000.00. Bitcoin emission is limited and it amounts to 21 million coins. Over 17 million ones have already been mined. But it is necessary to recall a double decrease in the remuneration for a found block, which occurs every 4 years. It is easy to calculate that over the next 30 years, more than 99% of all coins will be mined, and the remaining 1% will be mined over the next 100 years.
According to the laws of economics, this feature makes Bitcoin a very valuable and, most importantly, a limited resource. Now Bitcoin capitalization is about 70 billion US dollars, and it is absolutely a wasted number from the world scale perspective. Many market experts predict a great future for this coin, for example, John McAfee believes that 1 Bitcoinby December 2020 will be USD 1,000,000.00.
If to take a look at Bitcoin chart for the entire history, one can see approximately the same picture of what is happening: rapid growth, prolonged correction, stagnation after which the cycle repeats. Moreover, every time during the correction, the media “buries” Bitcoin, and the coin after some time again renews its previous records.
Bitcoin mining, as of the beginning of 2019, is not a very profit-making enterprise without major initial investment. Bitcoin mining should be considered more like an investment for the future, when BTC becomes a very scarce asset and its value can literally skyrocket. Well, we cannot do anything but wait and actively monitor the developments.
During the last couple years the crowdfunding market began to develop rapidly. ICO or initial coin offering – is not only a very convenient way of raising capital for further project’s development, but also a very profitable investment tool. But there are many troubles on this market, which need a solution. In this article we will talk about a new type of crowdfunding on the cryptocurrency market (STO), find out how it differs from the ICO and what is its future.
1. The main problems of ICO
So as it was mentioned before, the ICO reputation suffered during 2017 – 2018 years. The sad statistics indicates that the vast majority of cryptocurrency startups that conducted public ICO, failed. There are many scammers on this market, whose activities are aimed only at personal enrichment. In 2018 general investments in ICO amounted to more than 18 billion dollars, and by the end of the year all projects brought only losses and frustration to their investors. Because of this, the regulators began to actively monitor start-ups that raise their capital through crowdfunding.
Users can purchase two types of digital assets in a process of participation during initial coin offering:
Payment Tokens. They can be used to pay for different goods and services, offered by a company- issuer.
Utility Tokens (or useful tokens). They allow using some specific services, offered by an issuing company.
It is very important to understand, that possession of the above mentioned types of assets does not provide an investor neither with influence on the destiny of the company (for example to participate in the voting of shareholders), nor with protection of his rights. The fact is that payment and utility tokens are not equal to securities or stocks.
2. What is STO?
It worth noting, that there is one more type of tokens – Security Token. This variant of assets is very similar to traditional stocks, to which everyone has already managed to get used on stock markets. The main feature of this type is that their owners, in fact, have the right of ownership of a certain share of a company. Such kind of investment is fully protected by regulators. It means that company’s failure to fulfill financial obligations to its investors will entail legal proceedings.
Many experts note, that STO will replace ICO on the crowdfunding market. The matter is the best features of ICO and IPO were united in this investment tool. STO got that level of security, which IPO has, and also the relative simplicity and accessibility that is inherent to ICO.
An investor must have net worth of $1 million. It is worth noting that this amount does not include the market value of the investor`s real estate in which he lives.
The investor should have net income of 200 thousand dollars a year. If we are talking about a married couple, their total annual income must be at least 300 thousand dollars a year.
If we talk about an organization, its net assets must be at least $5 million in order to participate in STO. Also, all members of the company must be accredited investors.
It worth noticing, that an investor does not have to comply with all the above mentioned points, one is enough.
4. Forecast for the future
It is early to talk about the future that expects for STO yet. The main indicator of success, which is worth paying attention to is the number of companies that do not work on the blockchain technology market, who wants to conduct an STO in the near future. This type of attracting investment should interest middle class companies, for which to conduct a classic IPO is too expensive. If this scenario becomes a reality, then it will be possible to assert with confidence that STO has a great future. It worth noticing, that this is not a fast process. It will take at least 1-2 years to set all the mechanisms and launch STO for a wide audience. It is quite possible with the right approach of investors and regulators. Now there is another obstacle on the way to massive implementation of STO – the general decline of the cryptocurrency market. The matter is that people`s interest to investments in blockchain is decreased at the moment. But the fall cannot last forever, that is why many experts still have optimism and believe in better future of both STO and the cryptocurrency industry.
The digital coins market shows a negative trend throughout the year 2018. Compared to the historical maximum, the total cryptocurrency market cap has decreased by almost 8 times. The cryptocurrency market shows a negative trend throughout 2018. During the year, news of the cryptocurrency market that are actively discussed in media, have a negative meaning. Let us recall the most important events that occurred on the cryptocurrency market.
Content: (please, click the topic to scroll down to it)
At the very beginning of 2018, traditional financial institutions began to limit the capabilities of participants in the cryptocurrency market. A large number of fairly large banks around the world began to close the accounts of companies whose activities are related to cryptocurrency. We may also recall the decision of Visa to terminate cooperation with major European companies. All this adversely affected cryptocurrency companies. But it is worth noting that the restrictions of banks affected not only legal entities, along with this ordinary customers also lost an opportunity to buy cryptocurrency through their credit and debit cards.
A similar policy of the Reserve Bank of India led to the fact that local cryptocurrency platforms closed crypto-fiat trade. In the middle of autumn, Zebpay cryptocurrency exchange was forced to close the cryptocurrency exchange service. A similar situation happened in Zimbabwe, but cryptocurrency companies were able to challenge this decision with the help of the Supreme Court of the country.
Such policy of traditional financial sector representatives speaks only of their concern and desire to get rid of a potential competitor. If to analyze the cryptocurrency market, it becomes obvious that this industry is developing too fast. This makes the financial giants to tremble with fear and uncertainty about the future. This event played a big role in crypto market cap lowering.
2. Internet restrictions
Another damage to the cryptocurrency industry in 2018 was caused by the largest Internet companies: Google, Twitter, Facebook, Baidu, Alibaba, WeChat, Yandex, etc. All of the above mentioned information giants banned the promotion of cryptocurrency and ICO on their sites. This decision caused corresponding consequences, namely, undermined confidence towards the industry, and also cryptocurrency market capitalization decrease. Mining applications were blocked in App Store.
The Internet giant’s representatives explained their decision by the fact that there is a huge number of scammers in the cryptocurrency industry, which trusting users should be protected from. However, just a few months later, Facebook and Google reconsidered their decision and partially canceled it.
3. Bitcoin ETF
One of the most discussed topics in the industry since mid-summer of 2018 is the possible launch of Bitcoin ETF. The fact is that the situation in the cryptocurrency market strongly depends on the SEC decision. We remind you that cryptocurrency market value growth, which occurred in November-December, was caused by the launch of futures at CBOE and CME. Many experts believe that the launch of ETF will be a much more powerful event than the last year’s futures.
But the situation that has developed around this issue is quite controversial. On the one hand, the SEC does not deny the possibility of giving permission to launch Bitcoin ETF. But on the other hand, The United States Securities and Exchange Commission rejects all applicants (or postpones the date of consideration) who submitted the application during the year. The staff of the SEC explain their reasons quite uncertainty.
It is worth mentioning that during 2018 a lot of funds and exchanges have submitted their applications: ITS, Direxion, VanEck, Winklevoss Bitcoin Trust, ProShares, SolidX, etc.
Based on the latest data, the Securities Commission must make a final decision on the ETF before February 27, 2019.
The cryptocurrency market`s fall, which began in early 2018, was caused by many reasons, one of them is the lack of a legislative base. In other words, at the moment the cryptocurrency market is not regulated at all. Just this year, a large number of changes were to occur in this matter. But, unfortunately, everything happened not the way it was expected.
It is worth noting that this year many countries of the world drafted bills, that in one way or another dealt with cryptocurrencies. Some states limited the presence of digital coins on their territory due to the complexity of regulation. Others, on the contrary, encouraged and developed this direction in every way. For example, on July 4, 2018, blockchain technology was officially legalized in Malta for the first time in the world.
At the end of the winter, the German authorities signed a law under which Bitcoin equated to legal means of payment and was thus released from taxation.
This year was the first time in the history of the industry, when the regulation of cryptocurrency was discussed at the highest international level. For example, the mechanisms for regulating the industry became an agenda at the G20 meeting. It was decided to postpone this topic till October, but no one has returned to it thoroughly so far. This also had a negative effect on the cryptocurrency ranking.
5. Attracting of institutional investors
This year, for the first time the entry of large players into the market was seriously discussed. The interest of institutional investors in cryptocurrency assets is confirmed by a survey of an independent consulting company Capgemini:
44% of the surveyed large capital owners are interested in cryptocurrency investments;
29% of the surveyed large capital owners showed high interest;
27% of the surveyed large capital owners expressed moderate interest.
Another interview, which was conducted by an independent consulting company DeVere Group, says that almost 40% of large business owners want to see a list of cryptocurrencies by market cap in their investment portfolios.
6. Active development of the OTC market
The situation on the cryptocurrency market today is as follows (according to CoinMarketCap):
market capitalization of 130 billion dollars;
24h trading volumeis about 16 billion dollars.
The situation is not the best, to say the least of it. But it is worth noting that the second mark is not entirely correct. The fact is that we see only turnovers that relate to stock trading. According to the company TABB Group, the UTS trading market is approximately 2-3 times higher than the stock index. It should be noted that such transactions cannot be traced when dealing with blockchain, since private keys from wallets are transferred more often than coins.
There is a sufficient number of large players in the cryptocurrency market (large miners, investors, ICO organizers, etc.), who cannot satisfy their demand with the help of exchanges. More and more OTC platforms began to appear due to the growing demand in the industry.
7. ICO Market Growth
Even regardless of depressing mood on the cryptocurrency market, the number of ICO held in 2018 is much more than in 2017: more precisely, 741 vs 514. The amount of raised funds also grew: $18.16 billion vs $6.89 billion.
The most discussed project of this year was undoubtedly TON from Pavel Durov, who managed to attract $1.7 billion. These funds were obtained even without public ICO, and Durov had to refuse from the overwhelming majority of those who wanted to invest in his brainchild.
But if to consider the amount of collected money, the undoubted leader is the EOS project, which managed to raise about 4.2 billion dollars. This mark is the best not only in this year, but also in the entire history of the industry as a whole.
But even such major events as EOS or TON could not help a fading interest of people to invest in cryptocurrency at the stage of the initial coin offering. The situation is caused by a general decrease in the capitalization of the cryptocurrency market in 2018. Because of the downtrend on the market, the vast majority of coins now cost less than at the ICO stage.
8. Cryptocurrency companies entering the IPO market
ICO is certainly a rather convenient way to raise capital, but despite this, many cryptocurrency companies expressed their interest in entering the more traditional IPO market. The initial public offering or IPO is regulated by the SEC. Investors are more protected there and this fact attracts people with large capital.
As of the beginning of December 2018, only one company successfully conducted its own IPO, all the others did not go further than applications or plans announcement for the future so far. In August of this year, there was an initial public offering of Argo Mining Company. It works in a cloud mining field. The company’s results are quite good, it managed to raise $32.5 million during IPO.
9. Integration of financial conglomerates
As we wrote above, some large financial institutions have limited the cryptocurrency industry development by their policies. But it does not concern absolutely all financial conglomerates of the planet. In parallel with the collapse of the cryptocurrency market (financially), we can observe the world’s largest banks integration into the industry (Goldman Sachs, HSBC, Barklays, etc.).
At the very beginning of the year, Goldman Sachs, with the help of a startup Circle, bought one of the largest cryptocurrency exchanges Poloniex. The official sum of this transaction was not disclosed, but according to analysts’ estimates, such a purchase costed them about $400 million. It is worth noting that, Goldman Sachs invested $136 million in a startup Circle before acquiring Poloniex.
In early autumn the largest financial conglomerate of the land of the rising sun (Japan) Mitsubishi UFJ Financial Group started its own MUFG coin in a test mode. If the test is successful, then the representatives of MUFG promise to introduce it into their own payment system.
The Bank of America and other major financial institutions owners in the world got curious in Technology Ripple (xCurrent), which helps banks to save about $3 on each transaction. This year, a number of major banks and the Ripple company signed cooperation agreement. It was highly expected, because xCurrent technology allows banks to save tens of millions dollar a year.
10. Integration with Internet companies
Along with the negative news background that accompanies the cryptocurrency industry throughout the year, an increasing number of Internet companies are trying to integrate digital coins into their product. For example, a few months ago, the Opera browser for Android released support for a built-in cryptocurrency wallet. At the moment, this wallet supports only ERC-20 and ERC-271 tokens, but the developers promise to add support for new types of digital coins in the near future. If to follow the news, it is easy to notice how the above mentioned event is connected with Bitmain Company`s purchase of 3% of Opera Ltd in the amount of about $50 million (Bitmain Company is the largest manufacturer of network equipment for mining).
The cryptocurrency browser Brave shows good download dynamics: more than 5 million installations over the past six months. This number can be explained by a good program to attract new users, which was launched by the Brave developers. The browser charges 25 BAT for every 2 months of use. That is, for 1 year, you can accumulate 150 BAT, and for 2 years, 300 BAT. At today’s prices, it costs approximately $25 a year, but BAT is rated as one of the most promising coins of the next bull market. According to various estimates, it will enterTOP-10 and grow by from 30 to 50 times. That means, by using this browser it is possible to get from 1,000 to 2,000 dollars in a couple of years.
The cryptocurrency market today is experiencing a downtrend. Market capitalization has decreased by almost 8 times, compared with the peak values of this year. As you can see, the general news background is negative this year. But it is worth noting that along with this, the infrastructure in the industry is actively developing, and new institutional investors are coming to the market. The forecast of the cryptocurrency market is not quite clear, but major experts believe that there are still many ups and falls ahead of us.
This year Bitcoin celebrated its first anniversary, the first cryptocurrency turned 10 years old. Bitcoin survived many rapid ups and quite a few drastic falls during its not very long history. In this article we will talk about the most important events in the industry that have occurred over the past decade. So let’s get started.
In the fall of 2008, the world learned about such a concept as Bitcoin for the first time, when its creator, the mysterious Satoshi Nakamoto, published his work. He described the basic principles of the new payment system, in which there is no central governing body or any intermediaries. But it is worth noting that BTC could not be bought or even mined in 2008, since the Bitcoin network started to work on January 3, 2009. The zero block was mined that day. After a few days, on January 12, 2009, the first transaction of coins from one wallet to another happened.
The first official Bitcoin exchange rate was set on October 5, 2009, it was possible to buy the coin at the New Liberty Standart exchange, where $1 = 1309.03 BTC. From this day the story of one of the most volatile and certainly the fastest growing assets in the world begins. In the first couple of years, there was no specific Bitcoin rate for fiat currencies. That is why, the first cryptocurrency`s rate started to be tracked since 2010.
Before turning to the review of the most important and serious events that happened with Bitcoin throughout the time of its existence, let`s recall a significant date, namely May 22, 2010. This day is significant due to the historical purchase of two pizzas at a price of 10 thousand BTC. This case is notable for two reasons:
firstly, in terms of today’s rate (at the time of writing this article it is $3500 per one coin), these pizzas would cost about $35 million, which makes them the most expensive dish in the history of mankind;
secondly, it was the first case of buying goods for cryptocurrency.
Due to this Italian cuisine`s lover, users around the world have become more interested in Bitcoin. In the same 2010, the coin rate significantly increased: first to 8 cents, and then to $0.5. Then there happened the first major coin rate fall, in just a few days the price of Bitcoin fell by 50%.
After that, the rate started to grow and at the beginning of 2011 one coin equated to 1 dollar. The first half of this year was very successful for the cryptocurrency industry, as of June 2011, the price of 1 BTC rose to a record $32. After that, the first scandal in the cryptocurrency industry happened, namely the hacking of the Mt.Gox exchange. As a result of this event, the BTC rate dropped to $3. That was the largest fall of the coin`s price in history.
In 2012, the first cryptocurrency bank Bitcoin Central opened up, it received an official license. This event had a positive impact on the rate of the coin. It should be noted, that that year the price of the first cryptocurrency was not volatile.
By this time, Bitcoin Central bank had already established its reliability, and with its help a growing number of investors began to take interest in cryptocurrency. Due to this, the Bitcoin rate began to grow rapidly and reached $266 in a short period of time. At this point, another negative event occurred in the cryptocurrency world – the arrest of the Silk Road Company. The CEO of the company got a verdict of 6 years in prison for property theft. Against this background, the Bitcoin rate decreased by half. But in 2013 investors were too determined; therefore the BTC rate continued its growth. By the end of the year, it overcame the psychological mark of $1000.
Correction in 2014-2016
After such a rapid growth, a rather deep and protracted correction immediately followed and lasted for more than two years. Only in early 2017, the price of Bitcoin was once again able to overcome the $1000 price point.
This time was characterized by a struggle between hackers and software developers. Successes and failures of both parties were reflected on the Bitcoin price chart. At that time, the industry began to actively develop the infrastructure, creating new decentralized applications. Since the market did not make any special movements, only traders could make money on the cryptocurrency market at that period of time. At that time the rate of BTC fell to $190, and correction lasted for more than two years.
Bitcoin “Fever” of 2017
This year was the most successful one for the cryptocurrency industry in history. It was in 2017 when the masses learned about Bitcoin and digital coins. Throughout 2017, the price of Bitcoin and other coins grew steadily. By summer 1 BTC cost $3000, by fall it cost $6000, at the end of November the price was $10000, and after that, on December 17, 2017, a historical maximum of almost $20000 was reached. At the beginning of the January of 2018, Bitcoin tried to start an upward movement again, but it could only grow to $17000.
After this, the rate began to fall down. By the February of 2018, the price of the first cryptocurrency dropped to $6000. Then rate started to grow, but unfortunately, the upward trend did not last long. Throughout 2018, the Bitcoin rate fluctuated up and down. The price of BTC did not fall below $6000 until the November of 2018. And then there happened the most rapid fall in the history of Bitcoin exchange rate over the past 7 years – in just a couple of weeks the coin lost half of its value (the price dropped to $3000).
At the time of writing this article, the Bitcoin rate is $3880 per coin. This correction has been going on for almost a year and no one can say for sure when it will end. As practice shows, Bitcoin can rapidly fall and stay unchangeable for a very long time, but its price recovers and even overcomes new psychological marks sooner or later.