The price of cryptocurrency has been steadily climbing over the last year, and the adoption of the technology is continuing to grow.
Although Bitcoin’s price is nowhere near the historic highs of late 2017, it has shown a steady rally in investor support despite its volatility.
Speaking to MyBroadband about how cryptocurrency has changed over the last year, blockchain expert Simon Dingle said it is apparent that the “crypto winter” is ending.
This is because of an increased interest in the technology behind digital currency as well as halving events, he said.
Massive year for Bitcoin
“The Bitcoin network grew substantially in 2019, breaking records for hash-rate,” Dingle said.
Hash rate refers to the overall processing power used to mine cryptocurrency. It contributes directly to the strength of the network against attacks and other interference.
“We also saw the launch of Bakkt, led by the holding company behind the New York Stock Exchange, and momentum for big established players like IBM, Microsoft, and Starbucks, amongst many others, starting to roll out blockchain technology, with a focus on Bitcoin.”
Dingle added that the price of cryptocurrency was not the most important indicator of success – the technology’s evolution is a better measure.
“If one ignores pricing, which is the least most interesting part of the equation, 2019 was a massive year for cryptocurrency in general.”
When asked about the price of Bitcoin and other major cryptocurrencies, Dingle said the value has risen predictably.
“I don’t pay too much attention to price movement, but it was clear that we saw the beginning of the end of the crypto winter this year,” he said.
“This was entirely predictable given that the halving, when rewards for Bitcoin miners will be reduced, is taking place in 2020.”
“We’ve seen this pattern before, and it’s playing out again predictably, as was intended,” Dingle said.
He noted that the Bitcoin blockchain is bigger than ever, and the market will eventually catch up to this and begin a new hype cycle.
“In terms of scaling, adoption, and real-world applications, Bitcoin grew in leaps and bounds over the last year,” Dingle said.
“During October 2019, hash-rate on the Bitcoin network hit an all-time high of just over 114 million TH/s, meaning that the network is bigger than ever before. Once rewards are reduced, the market will do its thing in catching up with reality, and a new hype cycle should begin.”