Part 1: Using Bitcoin’s past history to predict where we are going from here
This is a series in which I intend to use the historical trends of Bitcoin to give guidance to where I expect Bitcoin to go. Follow me
on Medium to keep up to date!.
I tend to follow Crypto Twitter and news sources of crypto pretty heavily to see where the market sentiment currently is. I think a lot about crypto and where will we be in 5 years, 10 years or even longer. I am one who believes in the industry, just as some were convinced about the rise of computers in the ‘70’s, ‘80's and ’90’s.
Who would have thought back in 1985 that there would be this device(mobile phones) that allowed humans to have complete connectivity to what was at the time, only had one real adopted purpose — email?
In August 2012, Bitcoin had its real first “major” correction of 56.73% — $16.41 to $7.10. For the few people who were in the industry at this time, this was a harsh blow to the value of Bitcoin, but this was the absolute most pivotal point in Bitcoins history.
Following the crash of August 2012, 155 days later Bitcoin broke past that incredible all time high and turned the level into support and soon it started to show it’s might. A might that indicated it would never touch this level again in its history.
Following that break out above it’s all time high, Bitcoin spent the next 79 days in price discovery, discovering where the top would be. It found the top was April 2013 after making an incredible rally of 1427.33%. The following two days, it fell -82.65%.
This first “bull run” is one that we all thought was incredible yet, here is this “digital money” idea, which most of us believed in, yet the vast majority of the world either just started hearing about it, or was thinking about it as a giant scam and yet who ever invested in it had lost all their money.
What many people failed to realize is that Bitcoin — had just gained value from nothing and over the course of 2.5 months, someone basically 10x’d their portfolio at the peak or even if you sold at the bottom 2 days after the peak, still had nearly DOUBLE what they initially invested.
Continuing through the dark times is incredibly hard, incredibly scary, to think you may have hit the jackpot of all jackpots to then have it completely ripped out from under you.
What we did not know was that this incredible rise and fall of bitcoin was the absolute start to something truly beautiful yet an incredible roller coaster of emotions.
Stay tuned for future parts of this series. The reason I am going over the history of Bitcoin is because it plays a key role in how we can determine future trends and come to some idea of where this beast is going.
