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Bitcoin Price at $5,000 After First Reaching This Level in 2017 — What Has Changed, What Is to Come?

  • Jack Thomas
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    The first time Bitcoin crossed $5,000 was in 2017. Now, in 2019, it is back there. What has happened in that time, and what is to come?


Bitcoin Price at $5,000 After First Reaching This Level in 2017 — What Has Changed, What Is to Come?
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It is strange to think that, in October 2017, Bitcoin was starting something big as it crossed the $5,000 mark for the first time and was quickly gaining momentum. Now, in April 2019, we are at the same price area, but are we at the foot of something similar?

Bitcoin was on its way to $20,000 based predominantly on speculation and investor excitement. That same speculation caused a bit of a price bubble to burst and the figure to fall as low as the $3,000 mark.


So, as we see Bitcoin overtake $5,000 again, are we set to repeat history, or is this going to be a different type of rally based on the advancement of the technology itself?

A broader market

The October 2017 $5,000 mark came about mostly because mainstream adoption was starting to build and more and more people were hearing about Bitcoin, and getting involved in it. The news was full of success stories and because of its ease of access and lack of exclusivity, people flooded into the market.

From active Bitcoin wallets to those joining the crypto community through the likes of the r/Bitcoin subreddit, the number of new people in the space has risen substantially. It may have ebbed and flowed because of the bear market of 2018, but it has been on the rise substantially since the first $5,000 breakout.

SegWit

The influx of people also meant an influx of pressure on the blockchain. Bitcoin Cash spawned just before Bitcoin took off, and it was supposed to be a way to scale the cryptocurrency. Instead though, SegWit came to be, and it gained traction quick.

But recently, for the first time, daily median transactions per block, excluding Coinbase activity for SegWit-based transactions, reached over 1,000 on March 30, 2019. Activated for Bitcoin in August 2017, the SegWit scaling upgrade was meant to help change the way data is stored on the network.

Lightning strikes

Speaking of scaling, another off-chain solution has come to be since the last time $5,000 was hit as Lightning Network continues to grow on Bitcoin's blockchain.

Real-time statistics show that Lightning transactions have now surpassed $5 million in capacity. Its use is expected to improve Bitcoin adoption, including for merchants who seek to accept the cryptocurrency as a means of payment. In 2017, the Lightning Network was not available in the space.

To the future?

If we are to take historical chart movements seriously, this quick rise over $5,000 is a very positive thing. The timing is right for Bitcoin to rally again after 2018’s bear market, but this time it has a lot more weight and importance behind it, meaning this rally could be more than just speculation based.

Cover image via u.today
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Binance Coin Price Surge Indicates Huge Support for Binance Chain Mainnet — Is This the Future?


Binance Coin Price Surge Indicates Huge Support for Binance Chain Mainnet — Is This the Future?
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On a day where the markets are predominantly in the red, but only slightly, it is interesting to note that Binance Coin is surging. The exchange token is up fiver percent, but it is totally understandable as to why there is so much positivity around the company.

The biggests news, which comes off the back of its decentralized platform, Binance DEX, is that the Binance Chain mainnet has been launched and that they will be executing their Mainnet Swap on April 23rd.


This means that Binance Coin will be shifting away from Ethereum, leaving questions open as to what this means for Ethereum, which has been under the pump to stay relevant in today’s crypto and blockchain space. This move will result in a migration of $3 billion worth of BNB being moved away from the Ethereum blockchain and onto the new Binance chain.

A positive investment

All the good news emanating out of Binance has not only helped the coin to climb in price when the rest of the market settles down – it is helping it head towards a new all time high. Binance, like many altcoins, reached its ATH in January of 2018 in that parabolic stage.

Binance Coin hit $24 back then, and now, it is at $21 and rising with the thoughts being that when the mainnet move takes place, there could well be an even bigger surge. It is also interesting to note that just a few months ago, at the end of last year, it hit lows of $4.50.

Competing with Ethereum?

The mainnet move is obviously good news for Binance, as the markets are suggesting, but is it equally bad news for Ethereum, which was the holder of $3 billion thanks to the exchange. Many people have speculated that this new blockchain platform will pose competition to Ethereum, but ultimately it will help diversify Binance Coin’s use cases while also increasing its utility.

So perhaps rather than being a direct competition to ETH, it is only going to strengthen Binance Coin and in doing so perhaps spell out the future of cryptocurrencies as there is good reason to believe that this token, with its added utility and use cases, will be a viable token for the world going forward.

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