The cryptocurrency market has been portrayed as an ineffective asset class by a lot of critics with many claiming that the lack of government regulations and slow settlement rates will be the industry’s downfall. Bitcoin, the world’s largest cryptocurrency with a market cap of more than $120 billion at the moment, was the asset that kick-started the industry and with it, the criticisms.
The last bear market that started in 2018 was viewed by many as the ‘death of the industry’, many even predicting the timelines for Bitcoin’s last breath. This view-point was based on the thought that-
-Bitcoin is a fluctuating asset class that will never grow
-Bitcoin and its counterparts are not a safe way to conduct monetary transactions
The first notion is inherently the leading cause for the second and recent analysis showed that Bitcoin and some other cryptocurrencies are actually a growth commodity. Surveying the charts, it was seen that the world’s largest cryptocurrency has a year-on-year growth rate of 6 percent, a figure that is significant even when compared to the mainstream S&P market. Another pointer was that Bitcoin was one of eight cryptocurrencies that registered a consistent Y-o-Y increase, a sample space that did not include top currencies like XRP and ETH.
Statistics from Messari displayed a clear positive trend for Bitcoin, with the cryptocurrency checking all the right boxes required for prolonged sustainable growth. According to the data, BTC has been in the green in terms of Return on Investments [ROI] since its increased growth back in 2011. The ROI is the raw percentage return on and an asset from the beginning of the year to the end.
Post the close of 2011, BTC recorded a positive growth of a whopping 1420.27 percent, a magnitude that is usually far-fetched in mainstream finance. The following year BTC provided a modest ROI of 174.90 percent, which was one-upped in a fantastic manner in 2013 when BTC ROI reached its all-time high of 5360.67 percent.
2014 was the only red mark on BTC’s report card, although it was only a drop of 57.72 percent which was rectified over the course of the next two years. In 2015 and 2016, BTC corrected 2014’s ROI loss by gaining 35.44 percent and 89.77 percent respectively, a positive addendum of 67.49 percent. 2017 was the year when BTC went back to its superstar mode by registering a massive 1610.77 percent as positive ROI.
Some say that even though the long-term picture looks rosy, BTC is still struggling in the short term; this argument that can be disproven by looking at the numbers again. Keeping the moment of writing as the origin, Bitcoin witnessed an 11.12 percent ROI over the past week and a decent 55.74 percent increase in monthly ROI. Even after the infamous bear run that started almost 6 months back, the ‘king coin’ registered a 7.12 percent increase in ROI which contributed to its 5-year positive ROI growth of 1137.03 percent.
Bitcoin’s closest competitor on the cryptocurrency charts is the Vitalik Buterin co-founded Ethereum [ETH] and looking at its metrics, it becomes evident that BTC has taken the lead. Although Ethereum had a positive ROI growth in 2016 and 2017, both recording 756.78 percent and 9180.7 percent respectively, the second largest cryptocurrency was struggling in the short term. Over the past week, ETH witnessed a 2.76 percent decrease in the ROI rate while the yearly picture was negative too with a fall of 58.53 percent.
Although Bitcoin’s prices have seen massive fluctuations in the past, one reprieve that the cryptocurrency has is its growing advantage in the returns department.
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Justin Sun on shaking down the Internet, Coin Metrics on Kin’s blockchain activity and more
Crypto News – 26 June – Justin Sun on shaking down the Internet, Coin Metrics on Kin’s blockchain activity and more
— AMBCrypto (@CryptoAmb) June 26, 2019
Crypto News – 26 June
Bitcoin breaches new resistances: In a sensational run that saw the coin surge by 15% over 24 hours, the world’s largest cryptocurrency breached the $12,000 mark, while also briefly touching the $13,000 mark, before falling again
Read more at https://bit.ly/2ZMkS10
Tone Vays on Bitcoin’s biggest strength: Tone Vays opined that Bitcoin’s biggest strength was the fact that it was completely “unconfiscatable” and that one’s BTC is completely safe if it is protected and secured with attention
Read more at https://bit.ly/2RD2BjL
Tron Foundation launches new inititative: Justin Sun’s Tron Foundation announced a $20 million TRX buy-back plan to promote community activity and market stability
Read more at https://bit.ly/2X8aA9W
Joe Kernen on Bitcoin, Libra: The once crypto-skeptic, CNBC Squawk Box’s Joe Kernen is of the opinion that Libra is for corporations, while Bitcoin is for the people
Read more at https://bit.ly/31MkqSa
Bloomberg on JPM Coin: According to a report by Bloomberg, the Jaime Dimon-led institution plans to launch the JPM coin and use it for bond transactions
Read more at https://bit.ly/2X75DTr
Fundstrat report on stablecoins: According to a recent report by New York-based Fundstrat Global Advisors, the FS CryptoFX Stablecoin index fell by a whopping 21 percent against BTC, with Gemini outperforming Tether [USDT]
Read more at https://bit.ly/2X5qPJw
BitGo’s latest collaboration: Bitcoin IRA has announced that it will be teaming up with BitGo to launch crypto-retirement accounts insured for $100 million
Read more at https://bit.ly/31UvjBz
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