Why bitcoin’s 2020 surge is different from 2017

Written by Ciaran Ryan. Posted in Journalism

Institutional backers have now jumped on board in numbers. From Moneyweb.

Billionaires, funds and celebrities are buying bitcoin, which has shown its capacity to protect against inflation. Image: Chris Ratcliffe, Bloomberg
Billionaires, funds and celebrities are buying bitcoin, which has shown its capacity to protect against inflation. Image: Chris Ratcliffe, Bloomberg

It was the year of the bitcoin bubble, 2017. Over the following year it lost 84% of its value, falling from $20 000 to $3 200, but is now back within shouting distance of its all-time high.

What’s different this time is the shift in institutional sentiment, something that was largely absent in 2017.

Coindesk provides a list of crypto-related developments in just the last few weeks that demonstrate this shift.

Billionaire hedge fund manager Paul Tudor Jones told Yahoo Finance that bitcoin reminded him of the internet in 1999, when no one knew how to value internet stocks because of the world of possibilities that lay ahead.

He sees only one direction for bitcoin, and that’s up: “I’m going to assume that it’s the wrong price for the possibilities that it has. And I’m going to assume that the path forward from here is north.”

Read: Bitcoin is the bubble that keeps on giving

On CNBC, BlackRock CEO Larry Fink said bitcoin has “caught the attention” of many people and that the cryptocurrency market is still relatively small compared with others.

Ciaran Ryan

The Writer's Room is a curated by Ciaran Ryan, who has written on South African affairs for Sunday Times, Mail & Guardian, Financial Mail, Finweek, Noseweek, The Daily Telegraph, Forbes, USA Today, Acts Online and Lewrockwell.com, among others. In between he manages a gold mining operation in Ghana, and previously worked in Congo. Most of his time is spent in the lovely city of Joburg.