Bitcoin has become the biggest trend in recent years. After the big impact, it reached massive heights in its value. At a point, Bitcoin had a value that was estimated well-above $19,000. There is a lot of information about the Bitcoin revolution and its uprising. There is no accurate description on how the revolution started, but it sure made itself well-known. The cryptocurrency was created in mid-2008, with the start of the domain bitcoin.org. It started gaining speed in 2010 and 2011. During 2015 and 2016, the business started expanding rapidly.
People that have invested in the cryptocurrency were not expecting such a drastic change in profits. Most of them thought that Bitcoin will bring them a profit, but not a handsome one. There were some speculations about artists that made their albums available for purchase with Bitcoin, and after a while, the waiting paid off, bringing them millions onto their account. The easy profit lured a lot of new customers, increasing the investments and expanding the whole business. But, after a while of outrageous prices and exchanges, Bitcoin’s value dropped to around $9,000 in June 2019.
Numerous ordinary people, blockchain investors, and organizations made a lot of money by investing a certain amount in the beginning. The overflow of investors in Bitcoin are the cause of the sudden rise and drop in value, but that was expected. A sudden rise in the value often leads to a sudden drop, then a stagnating period begins. During that period, Bitcoin stabilized and reached a normal value.
Bitcoin’s outrageous rise started in 2017, and in November the same year reached a $10,000 value for the first time. The sudden drop started in 2018, when its value dropped 50% in 16 days. 2019 was the year where it finally stabilized.
Many countries banned the use of Bitcoin, due to its abilities to go around the financial institutions like the banks, and make a pure profit without any fees. It became too unstable to control. A good example for drastic changes are the African countries, especially Zimbabwe. The impact was so big just because countries like Zimbabwe are not financially strong countries, and it became easy for cryptocurrencies to gain momentum.
Some analysts claimed that people in Zimbabwe trusted Bitcoin more than their native currency. After the resignation of president Robert Mugabe, everybody was motivated to trade with Bitcoins. At a certain point, the value hit $17,000 there. Even though it presented a nice short-term solution, the lon-term outcome was not that great.
Zimbabwe’s government printed $100 trillion at a point. That resulted in high inflations, raising the cost of living through the roof. Cryptocurrencies like Golix were very popular and often used. Having no other solutions left, Zimbabwe’s Reserve Bank decided to block any trades made with the cryptocurrencies, and banned them all.
The move was quite logical, because as a weak financial country, Zimbabwe cannot deal with inflation, unlike strong countries like USA or the UK. At the end, the cryptocurrencies were too much to handle, and even though they left a lot of traders and companies short-handed, there was no other way to deal with the problem.