One of the most common questions asked among nearly every newcomer to the cryptocurrency space must be, “When will it pop?” Although there are very differing opinions all over the internet, there is clear evidence over the course of history that Bitcoin has already been in a bubble. Even more interesting, it has already popped multiple times. Taking a look at the price of Bitcoin since its inception shows signs of major bubbles being burst over the past 10 years. However, the resilient Bitcoin has proven time and time again that it will always come back, and stronger than ever by breaking new all-time highs every time its bubble pops. Let’s take a look at the price history of Bitcoin and why this new “bubble”, to the long-term holders of Bitcoin, is nothing to be afraid of.
In April of 2013, Bitcoin holders experienced an unfathomable of level of volatility. To put it in perspective, the stock markets biggest crash in history was on October 19, 1987 in which the market lost 22% on the day. This was and still remains to be the largest one-day loss in the stock market. On April 7th 2013, Bitcoins price fell from $233 to $67 overnight! A 71% drop in one 24 hour period. To those that held on to Bitcoin since then, you have truly earned their stripes. If you made it past this pop, nothing about the short-term price action of Bitcoin today should even phase you. This was just one bubble of the many.
From the 67$ price point, Bitcoin rallied back to 140$ by the end of April and continued to trade between $100 and $140 for most of the remainder of 2013. Putting this in perspective with the stock market once more: If you purchased at the low of 67$ and held until the end of April, you could have doubled your investment in less than one month. When has the stock market ever yielded anything even close to that? You would be lucky to get a percentage over 20% for the whole year!
Moving into the fall of 2013, Bitcoin went parabolic yet again! By November 2013, Bitcoin had crushed through the $1000 threshold. A number that no one ever thought to be possible. Then in December of this same year, the price came tumbling down to below 500$. It took Bitcoin 4 years to see the $1000 price point from here.
Fast forward all the way to the year 2017, the year in which Bitcoin has becoming seemingly invincible. In January of this year, the value of one bitcoin was just over $1000. To say back in January, as little as 11 months ago, that the price of Bitcoin will hit $8,000 by the end of 2017 was absolutely ridiculous and people would look at you like you were crazy. Well, here we are. Bitcoin shattering the $8,000 threshold and we aren’t even into December. Will this current “bubble” burst anytime soon? The truth is nobody knows when it is going to burst or how big this bubble can get. But there is one thing that is for certain if history is to repeat itself once more; buy as much Bitcoin as you can possibly afford to when it crashes