The outlook for bitcoin is always changing, in some cases from one hour to
the next. This make it very difficult to keep up with, though as anyone with an
interest in cryptocurrency knows, it can also be both fascinating and rewarding
to make the effort. As it so happens, 2019 has actually seen some degree of
stabilization in the bitcoin market, which in turn actually makes it a little
bit easier to keep a handle on.
the next. This make it very difficult to keep up with, though as anyone with an
interest in cryptocurrency knows, it can also be both fascinating and rewarding
to make the effort. As it so happens, 2019 has actually seen some degree of
stabilization in the bitcoin market, which in turn actually makes it a little
bit easier to keep a handle on.
With that said, we’ve identified five particularly important and interesting
things to know about bitcoin in 2019.
things to know about bitcoin in 2019.
1. The Price Has Soared
Bitcoin’s price has been on its most sustained bull run since the legendary
climb in 2017 (which saw it near the $20,000 mark). It recently
reached its 2019 high, and there are now some crypto analysts projecting
more gains – and some others suggesting those gains could eclipse the 2017
numbers. This is not meant to suggest that bitcoin is destined to keep rising
throughout the year, nor to guarantee that the bull run will last much longer
than it has to this point. However, after the late-2017 crash and a weak (and
relatively uneventful) 2018, the first half of this year has renewed hopes of
the cryptocurrency’s long-term strength.
climb in 2017 (which saw it near the $20,000 mark). It recently
reached its 2019 high, and there are now some crypto analysts projecting
more gains – and some others suggesting those gains could eclipse the 2017
numbers. This is not meant to suggest that bitcoin is destined to keep rising
throughout the year, nor to guarantee that the bull run will last much longer
than it has to this point. However, after the late-2017 crash and a weak (and
relatively uneventful) 2018, the first half of this year has renewed hopes of
the cryptocurrency’s long-term strength.
2. “Hedge” Talk Is Back
Once upon a time, when bitcoin was still getting on its feet as a popular
alternative currency, there was a fair amount of talk about how it could
replace gold and silver as a “hedge” against financial crises. This logic is
straightforward: Like gold before it, bitcoin enjoys total independence from
fiat currencies and major financial systems. Thus, the reasoning goes,
investors who worry that their wealth isn’t safe in banks or in fiat form might
buy up bitcoin during an economic downturn, so as to protect their wealth from
plummeting currency values. Whether or not bitcoin should or will perform this
way in the long run is still unknown, but it should be noted that the strong
2019 performance seems to have renewed talk of cryptocurrencies as hedge
options.
alternative currency, there was a fair amount of talk about how it could
replace gold and silver as a “hedge” against financial crises. This logic is
straightforward: Like gold before it, bitcoin enjoys total independence from
fiat currencies and major financial systems. Thus, the reasoning goes,
investors who worry that their wealth isn’t safe in banks or in fiat form might
buy up bitcoin during an economic downturn, so as to protect their wealth from
plummeting currency values. Whether or not bitcoin should or will perform this
way in the long run is still unknown, but it should be noted that the strong
2019 performance seems to have renewed talk of cryptocurrencies as hedge
options.
3. New Industries Are Emerging
Moving away from price talk and investment strategy, it’s worth checking in
every few months to see which industries might have newly adopted bitcoin, or
may be on the cusp of doing so. Indeed, the first half of 2019 has brought
along a few possibilities. One is significant bitcoin activity in gambling businesses.
Now spreading throughout the U.S.,
online gambling is becoming a bigger business in a significant portion of the
world; it involves incredible amounts of money changing hands, and
cryptocurrencies are starting to gain entry on some platforms, meaning there’s
massive new potential for bitcoin. Another interesting industry development is
that online retail is growing steadily more friendly toward cryptos. Recently
some sites have even emerged giving people multi-step methods of buying goods
on Amazon with bitcoin.
every few months to see which industries might have newly adopted bitcoin, or
may be on the cusp of doing so. Indeed, the first half of 2019 has brought
along a few possibilities. One is significant bitcoin activity in gambling businesses.
Now spreading throughout the U.S.,
online gambling is becoming a bigger business in a significant portion of the
world; it involves incredible amounts of money changing hands, and
cryptocurrencies are starting to gain entry on some platforms, meaning there’s
massive new potential for bitcoin. Another interesting industry development is
that online retail is growing steadily more friendly toward cryptos. Recently
some sites have even emerged giving people multi-step methods of buying goods
on Amazon with bitcoin.
4. Facebook Is A Factor
We wouldn’t quite call Facebook a newly involved industry, but the
social media giant should definitely be mentioned as another factor in bitcoin
development in 2019. Facebook
is making a foray into cryptocurrency, with a new digital coin that will
reportedly be called Libra (though other reports are citing it as GlobalCoin).
And with this development being viewed as something of an endorsement of
blockchain technology and cryptocurrency in general, it actually seems to have
boosted bitcoin performance early on.
social media giant should definitely be mentioned as another factor in bitcoin
development in 2019. Facebook
is making a foray into cryptocurrency, with a new digital coin that will
reportedly be called Libra (though other reports are citing it as GlobalCoin).
And with this development being viewed as something of an endorsement of
blockchain technology and cryptocurrency in general, it actually seems to have
boosted bitcoin performance early on.
5. Altcoins Have Remained Far Behind
As a final note, we should also mention that altcoins – those
cryptocurrencies not called bitcoin – have so far remained well behind in 2019.
Every few months there are articles suggesting that one or another of these
altcoins could be poised to catch up to bitcoin; sometimes we even hear that
one may ultimately beat out the leader. Years down the line, perhaps this will
be the case. For now though, bitcoin remains decidedly in front of the pack, at
least in terms of pure value and utility.
cryptocurrencies not called bitcoin – have so far remained well behind in 2019.
Every few months there are articles suggesting that one or another of these
altcoins could be poised to catch up to bitcoin; sometimes we even hear that
one may ultimately beat out the leader. Years down the line, perhaps this will
be the case. For now though, bitcoin remains decidedly in front of the pack, at
least in terms of pure value and utility.
Some Bitcoin users have also suggested that the currency can serve as a means to avoid taxes. That may be true, but only in the sense that bitcoins aid illegal tax evasion, not in the sense that they actually serve any role in genuine tax planning. Under federal tax law, no cash needs to change hands in order for a taxable transaction to occur. Barter and other non-cash exchanges are still fully taxable. There is no reason that transactions involving bitcoins would be treated differently.. Best website