Thirteen times they “buried” Bitcoin in 2020. What’s that supposed to mean? That 13 times the last year negative events occurred that negatively affected its value.
If you look deeper into the past, however, you will find that it has been declared “dead” three times less than in 2019 and the fewest times in the last 7 years. Which is certainly encouraging for those who believe and invest in it.
According to the data presented by the Cryptocurrency Trading Simulator Crypto Parrot, the 13 Bitcoin’s funerals represent a drop of 68.29% compared to the cryptocurrency’s 41 “deaths” in 2019 and the lowest number since 2013. In total since Bitcoin’s inception in 2010, it has “died” 382 times.
In 2018, Bitcoin was declared dead 93 times, while in 2017 its “funerals” amounted to 124. It was also the worst year in this respect for the digital currency, but also the year it touched $20,000 for the first time in its short history. That rally was mainly influenced by individual investors and the frenzy that followed its initial offer.
Before reaching its new high, Bitcoin faced large price fluctuations and large-scale hacking that made many question its future prospects. That same year, countries such as China announced an end to trading and ICOs – a development that led to bitcoin’s decline, and many saw its end once again.
The Factors That Contribute To Bitcoin’s Death
According to Crypto Parrot, there are many factors that contribute to the death of Bitcoin:
‘Overall, ”funerals” were made when Bitcoin attracted negative attention, such as with massive price correlations.
Systemic media and leading economists (check Nouriel Roubini) initially took the lead in expressing doubts about its future. However, when bitcoin institutional investors began to “embrace” it, the narrative seemed to change.
Although Bitcoin has achieved far more than expected, it still has a long way to go and is expected to face several hurdles in the years to come – most noting that it is subject to regulatory rules.
More and more countries are preparing for its adoption by adopting encryption-friendly regulations. China and Japan were at the forefront of examining the application of blockchain technology.
Bitcoin’s progress attracted the attention of the systemic financial sector. With a market capitalisation of EUR 598 billion, Bitcoin has now surpassed the valuation of traditional financial institutions such as the top banks.
Such developments have made Bitcoin resilient mainly because of existing investors, but also potential investors who are now more cautious about negative headlines about the future of assets, which shows that maturity is beginning to be achieved in this market.
Bitcoin’s supporters continue to insist that the cryptocurrency will never “die” because it will continue to be used in many cases. Interestingly, in the past, Bitcoin’s longevity was judged on its usefulness and not so much its price, the Crypto Parrot report concludes.