Bitcoin growth graph of 2017 was the highest among all financial assets. Some analysts said it was a speculative move. Partially they are right, but such behaviour of cryptocurrency has objective reasons.
Since the advent of cryptocurrency in 2009, they had not only supporters. A significant part of a large financial business cautiously accepted the emergence of new assets. Among them, a special activity was occupied by representatives of governments and the banking sector.
We must agree that these structures have always been too conservative. The London Stock Exchange in the City began work in 1698. During this time, thick volumes of rules and acts on the regulation of activity were developed here. Therefore, financiers restrained the bitcoin growth rate, they simply did not know how to relate to it.
All new causes vigilance first; cryptocurrency is no exception. The emergence of digital coins has changed the rules of the game:
Although bitcoin chart growth showed very high, there is no merit of large capital. According to experts, the average transaction size rarely exceeded 7,000 pounds. It turns out that the movement was stimulated by private investors.
There is always a moment when innovation can no longer be ignored. This happened during the period of bitcoin growth, everyone knew about this asset at once. There are many who want to buy a product with high growth potential. Customers turned to banks, but could not help them. However, they also did not want to miss the profit from commissions. This led to the emergence of such a financial instrument as cryptocurrency futures.
When buying such assets, the investor does not acquire the coin itself, but a security with a reference to the value. But bitcoin growth prediction forced hedging the risks of financial organizations through the acquisition of a trading instrument. This has become one of the important factors for the rise in the cost of cryptocurrency.
There was another reason that Bitcoin has risen in price. The media made an advertisement for it. They could not ignore the movement of quotations. Cryptocurrency has become the focus of newspapers, radio and television.
After such informational support, further bitcoin growth turned out to be only a matter of time. The more the press spoke about him, the higher the demand was.
In 2018, cryptocurrencies lost in price up to 70%. Such a process was expected. Always after the rapid growth comes the correction. Its reasons are as follows:
But the cryptocurrency has remained fairly expensive. If in the fall of 2016 for bitcoin they gave less than 1000 pounds, in the fall of 2018 it is on the threshold of 5000 pounds per coin. And this is happening against the background of a declining market.
From the above, we can conclude that bitcoin expected growth after the completion of the correction. The asset has already proved its relevance. The blockchain spawned a reliable financial asset with brilliant prospects.
Although it is not necessary for the coming years to again expect such a rapid upward movement. The stage of maturation has already passed, now the price of cryptocurrency will move in accordance with market laws. Those who bought bitcoin will enjoy the growth chart. But maybe not as much as before.