Bitcoin: Past the Crash and Embracing NFTs?
The “doom and gloom” of 2022 was suddenly turned on its head in January of 2023. Goldman Sachs called Bitcoin the best performing asset this year, and its price surged by 40%, making crypto fans happy.
But can we honestly presume that everything bad has passed? Is Bitcoin finally reaching a tipping point?
It’s human nature to make hasty judgements, yet the crypto world frequently surprises with unexpected shifts in focus. Despite this, signs are pointing to the bottom of the bear market being behind us.
The November 2021 all-time high of nearly $70,000 for Bitcoin is rapidly approaching its 15-month anniversary. The cycle high for 2017 occurred in December of that year, and the cycle low occurred a year later during a bear market.
In keeping with past cycles, Bitcoin’s yearly bottom of roughly $15,500 occurred in November of 2021, right when predictions predicted it would.
Furthermore, Bitcoin’s price dropped below $20,000 last year, below its previous cycle’s high. Bitcoin’s recent increase suggests it may be entering a new phase, despite predictions that its value may fall as low as $12,000.
A heated argument among crypto enthusiasts has coincided with Bitcoin’s recent ascent. The introduction of NFTs (or something similar) on the Bitcoin blockchain lies at the heart of the problem. The problem here is that adding non-fungible artefacts on the chain could be a wasteful usage, using up valuable block space.
An open-ended experiment with the potential to generate transaction fees for miners is a major selling point for proponents.
The One-of-a-Kind Purpose of Bitcoin: NFTs and Ordinals
As a subset of cryptography, NFTs have attracted a lot of attention. While the current conversation may appear expertise-specific and specialised, it is likely that early experimentation with Ordinals can become a considerable extension of Bitcoin’s original aim.
But this is happening as crypto markets are showing indications of recovery from last year’s difficulties, suggesting that Bitcoin and crypto assets may have a bright and exciting future.
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