The year 2017 was a remarkable one for Bitcoin, the world’s first and most popular cryptocurrency. It was a period of phenomenal growth, with the digital coin experiencing an unprecedented surge in value and widespread adoption.
At the start of 2017, a single Bitcoin was valued at around $1,000. This was already impressive considering that the currency had started out worth virtually nothing back in 2009. However, the Bitcoin community had no idea of the dizzying heights to which the cryptocurrency would climb over the year.
One of the key factors driving Bitcoin’s success in 2017 was growing acceptance and recognition. More and more businesses began accepting Bitcoin as a form of payment, acknowledging its potential as a global currency. Big names like Microsoft, Overstock, and Expedia, among others, joined the Bitcoin bandwagon, boosting its credibility and appeal.
In addition, several countries, including Japan, recognized Bitcoin as a legal form of payment, further enhancing its legitimacy and paving the way for increased usage and acceptance.
However, it was not just Bitcoin’s growing acceptance that led to its meteoric rise in 2017. The introduction of Bitcoin futures by the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE) in December was another critical factor. Futures trading allowed investors to bet on the future price of Bitcoin, opening the doors to institutional investors and bringing more liquidity into the market.
The result of these developments was nothing short of astonishing. By December 2017, Bitcoin had soared to nearly $20,000 – a 2000% increase in just one year. This explosive growth captured the attention of investors and the general public alike, catapulting Bitcoin into the mainstream media spotlight.
But 2017 was also a year of volatility for Bitcoin. While its value skyrocketed, it also experienced significant drops. For instance, in September, Bitcoin fell by over 30% after China cracked down on digital currencies.
Despite this volatility, the overall trend for Bitcoin in 2017 was undeniably upward. The year ended with Bitcoin firmly established as a significant player in the financial world, a far cry from its status as a niche curiosity just a few years earlier.
However, the rapid rise of Bitcoin also raised concerns about a potential bubble. Many experts warned of the risks associated with the volatile cryptocurrency, likening it to the dot-com bubble of the late 90s or the housing market crash of 2008.
In conclusion, 2017 was a watershed year for Bitcoin. It marked the cryptocurrency’s transition from a fringe asset to a mainstream financial instrument. The phenomenal growth and widespread recognition of Bitcoin during this period demonstrated the potential of cryptocurrencies to disrupt traditional financial systems. However, it also highlighted the risks and volatility inherent in this new form of digital asset.