2015 was a year of enduring strength for bitcoin, the world’s first mainstream cryptocurrency. From what many would call a capitulation phase in the market in January 2015 to a very healthy bull run to close out the year, bitcoin once again proved that it’s here to stay, despite commentary to the contrary.
After hitting a low of around $170 per bitcoin in January, many in the financial community pronounced bitcoin dead. How could something that was worth over $1000 in the near past plummet to such lows and be a legitimate store of value? Was bitcoin “funny money” with it’s best days behind it? Is government backed currency really the only reliable show in town in the world of money?
Well, after slogging along until about mid year, bitcoin began to rise significantly, ending the year over the $420 mark. What’s interesting to note is that while confidence in the markets has started to crack in a rising interest rate environment, bitcoin has responded positively. Couple this with the Greek financial drama which saw the ECB bailout the Mediterranean nation under the agreement of capital controls, bitcoin found favor as a portable store of value.
In short, bitcoin survived 2015, but what’s next?
For this writer, the future of bitcoin can be viewed through many different prisms, however, the main theme as I see it is if the digital currency will survive the next market collapse. Could bitcoin endure through another 2008? Could it survive a repeat of the Great Depression?
This remains to be seen. However, I do think bitcoin will survive. If nothing else, it’s a short position on the stupidity and inadequacy of the current financial – political system which has set the stage for the coming mess. Putting some money in a vehicle outside the system that transcends national borders doesn’t sound like a bad idea to me if you consider the writing on the wall.