Bitcoin was developed in 2009, the first real value occurred in 2010 from a fraction of a penny to $0.08. The idea to create Bitcoin was for daily transactions and as a response to the 2008 financial collapse. In 2011. BTC's price jumped from $1in April of that year to $32 in June. At beginning of 2013 BTC was $ 13.40, later that year in April but it was followed by a price drop to $70 in mid-April of the same year. By December of 2013, the price hs spike to $1156,10 following by a crash to $760 just three days later. At the beginning of 2015 price was $315. Another price blow-up was in 2017 when the price again jumped to $1000, after some volatile changes in price through that year price jumped from $975.70 in March to $20 089 in December the same year. Next few years price of BTC moved sideways. In 2019. we see that price has raised to $10 000 but again it fell to $7 200 same years in December.
In 2020 when we faced a pandemic price of BTC has went from $ 7 200 to $ 18 353 in November. By March of 2020 value of BTC price reached an all-time high of $60 000 then again was followed by the crash middle of the year and again has reached an all-time high of around $68 000 and right now is in a bearish market and we will see where these will lead us. Price is determined by the demand for BTC and supply.
Now when we see such a rise from 2018 to the boom of BTC price in 2020 we can ask ourselves how come the value of BTC has raised in such a short time? What has such a huge impact on the Crypto market?
In December 2019., Pandemy has started and we have seen how the closing of businesses has impacted a world economy. In response to this crisis European central bank issues a printing of$ 2 trillion dollars, USA has printed $3.1 trillion in the fiscal year of 2020. And some other measures were taken by central banks to save the economy. When we know that printing of money is their strategy we must ask ourselves for how long that strategy is susteniable.
So why did Btc price has so madly raised in 2020. Is the BTC price falsely high is that a real value? When we know that BTC run in a huge bull market in 2020 we can not deny the potential relation between Central banks printing money and the rise of BTC. Maybe the price of BTC is not real and it is a matter of time when we will see a huge market crash, in general, a few years from now. We can not close our eyes to fact that a huge amount of money has been printed in such a short time which may lead to hyperinflation in some time. You may ask why such a pessimistic view on BTC and crypto market in general but we can not overview these events and their possible relation. Those are just my thoughts on today's economy in general and all of what is happening since 2019.
Also, we must know that the stock market has crashed in 2019. in August which has happened just before the pandemic has started. Is the printing of money is related to the rise of BTC we can just speculate about it. This is not a prediction of the future crypto market or even the world economy this is just a view on events in the economy in the last three years and events which took place in that time.
There is also another side of it and that is an The Great Reset. The Great Reset was introduced in Davos in January of 2020. where world leaders discussed the potential future of the world economy. Maybe the so-called Great reset would create a system where crypto will take the role of printed money. If crypto will take that role and become part of a system we are losing the main purpose of crypto which was decentralization and anonymity. We see that the crypto market can go high in a short time which has hooked up a lot of people to trading mostly cause they want to make high profits for small investments in a short time. If cryptocurrencies become part of the system then central banks will decades on their value. Also, anonymity is not possible since all transactions have been stored in Blockchain. Since all money is digitalized we will lose cash which arises a question of our freedom. Can we be free in such a system where all transactions are recorded and stored on some cloud.
These are just some thoughts on today's economic situation not predictions of any kind. Hope well to all of you be kinda and wise we need these now more than ever.
