The 2017 bull run was the only one of its kind in the history of Bitcoin and cryptocurrency in general. Bitcoin rose from $1,000 to $20,000 in roughly 6 months while several altcoins gained several hundred percent. The effect is however long gone and some people are asking if such bull run will be experienced again.
A cryptocurrency enthusiast has opined that another bull run may come eventually but will be nothing like that of 2017. According to Steve, the cryptocurrency industry is still relatively small and so “legit projects (protocols, oracles, and DeFi)” will lead the way and are likely to attract all the big investments.
The cryptocurrency market was born when Satoshi Nakamoto released the Bitcoin whitepaper on 31 October 2008. Other cryptocurrency projects came only after that and the industry currently has more than 5,000 cryptocurrencies. Bitcoin has so far been the biggest of all in terms of market capitalization while altcoins have recorded varying levels of success.
The entire industry currently has a market capitalization of about $275 billion. This is far less than that of gold which has a market valuation of $8 trillion.
Interestingly though, gold has been in existence for centuries while cryptocurrencies have been in existence for just 11 years. Bitcoin which is the most popular digital currency has often been compared to gold as an equal or even better asset although it is much more newborn.
Despite the relatively small market cap, cryptocurrency is currently seen as long term investments with a huge potential for profit in the future. Such gains are often achieved through a bull run, and the industry is expecting one more massive than that of 2017.
Some investment experts expect Bitcoin for instance to reach as high as $100,000 as early as 2021. Several other key figures have predicted a new high for the top cryptocurrency by the end of 2020, contrary to Steve’s point of view. It, therefore, remains to be seen if the next bull run will be as big as that of 2017 or even bigger. What do you think is the more likely scenario?