The growth in the cryptocurrency ecosystem has been more of a double-faceted event in which some crypto projects succeed and others do not. Some analysts and observers in the cryptocurrency space may argue that growth is relative as projects do not have the same underlying principles and models, but when the price of a crypto coin for instance is isolated for review, the growth trajectory of the coin or token over time can reveal whether the coin is successful or not.
The primary target of most cryptocurrency projects is to find a wide embrace with the masses. While cryptocurrencies may have a lot of revolutions to usher in terms of changing the centralized nature of the current financial system, some of these coins have the inherent potentials to make people rich.
Price Action and Cryptocurrency Growth
A perfect model for tracking the growth of a cryptocurrency is the premier digital currency bitcoin (BTC). At the time of its launch back in 2009, the coin worth basically nothing as many people did not believe in the potential of the coin back then.
Bitcoin has witnessed a series of price surges in its history beginning with prices below $1. One of the prominent influencers in the space, Changpeng Zhao, the founder and chief executive officer of Binance cryptocurrency exchange, re-emphasized the need to embrace Bitcoin at this early stage (despite Bitcoin’s price recently crossing a new all-time high). Changpeng tweeted;
“You do realize that the current part of the #bitcoin chart will be a flat line in a few years, right?”
The comment came with a chart showing some highs and lows in the all-time price movement of bitcoin and the peak of over $1,000 experienced back in November 2013, which must have been celebrated at the time now represents one of the lowest points that Bitcoin can boast of ever recording.
Changpeng Zhao’s case is that the celebrated all-time high of $19,850.11 may eventually flatten out in the years to come if the growth momentum of Bitcoin is sustained.
Is More Growth to Be Expected for Bitcoin?
Many people in the space believe that Bitcoin is just getting started as this year represents the turning point with a huge institutional embrace. Besides the likes of Square Inc. and PayPal now providing support for the digital currency, many people significantly began turning to Bitcoin as a viable store of value with the inflation ushered in by the coronavirus pandemic.
The use cases and hype around Bitcoin are just starting to build and while the impending massive adoption will positively influence the coin’s price, its limited supply nature will further make the coin’s value skyrocket when the maximum supply benchmark of 21,000,000 minable coins is attained.
This is why the Winklevoss Twins are unrelenting in believing that Bitcoin’s price will hit $500,000 in no time. For those who believe in Bitcoin and cryptocurrencies, an early embrace of today despite the cost implications may turn out to be favorable in about a decade to come.