A Look Back at 2019: What Drove The Bitcoin Price?

2019 chart

Everybody and their mother seems to want to make the next bold Bitcoin price prediction. Will the price reach $20,000 in 2020? What about $50,000? Anybody for an even $100,000? The truth is that the upcoming Bitcoin halving event, the point at which the reward for mining coins cuts in half (as pre-programmed by the network’s built in algorithm in 2008) won’t necessarily make the price double or triple right away. Previous halving events have been built into the price well before the halving itself. That’s true for Bitcoin, Litecoin and other coins that restrict supply over time.

So rather than make a big, bold prediction for 2020, it’s important to consider what fundamental developments in the evolution of Bitcoin and other projects increased the value in 2019. The truth is, there are many milestone examples worth pointing out, but a small number really stand out.

What happens to prices in 2020 is anybody’s guess, but if history proves anything, meaningful partnerships, helping different blockchains communicate together and further exploration around the idea of decentralizing finance will all play a key role in the adoption of Bitcoin and other cryptos.

The Crypto Credit Bubble Hits Bitcoin Price

Back in October, a group of Wall Street traders urged caution among investors regarding the growing number of lending projects in the crypto industry. They specifically noted that lending projects like Salt, BlockFi and Nexo along with a few others have created a $5 billion bubble that can pop at any time. In defense of the lending segment of the market, BlockFi CEO Zac Prince notes that not a single person has been late on their payments to his platform. But still, with the cryptocurrency industry still being really small compared to the broader traditional financial market, even a small credit bubble in crypto can send prices spiraling downwards. This problem might continue in 2020 and beyond given that the decentralized finance segment of blockchain projects tripled last year.

Facebook Libra Gets Tested

Facebook CEO Mark Zuckerberg made headlines in 2019 detailing his plans to launch a stablecoin run by the social media platform in June. His announcement drew the ire of not only crypto purists but also governments, particularly U.S. Congress. Within a few weeks of hearing featuring Zuckerberg answering tough questions in front of several congressmen and women, major partners of the Swiss-based Libra Association backed out of the project. The biggest names to leave Libra behind to include PayPal, eBay, Visa and payment solutions provider strike.

Similar projects are trying to get off the ground including Universal Dollar and SGA Token. It remains to be seen which of these projects will actually gain significant market share moving forward, but one thing is clear, capitalists have realize there’s big money to be made in creating the next great digital stablecoin.

Bitcoin Betting Sites, Altcoins and the English Premier League

Bitcoin betting sites like 1XBit.com have been advertising during English Premier League games for some time now. Those advertising deals help spur interest among individual clubs who want to cash in on the crypto craze and it’s led to many notable sponsorship deals. Newcastle United has a deal in place with a cryptocurrency trading platform called StormGain. In November, Wolverhampton Wanderers FC announced a partnership with CryptoMillionsLotto, a lottery and gaming company that pays winnings out in Bitcoin.

E-Sports on the Blockchain

All one needs to do to see the e-sports industry flourish is look at the number of people who show up to watch tournaments live. Entire stadiums are selling out filled with fans who want to watch the best gamers in the world play League of Legends, Starcraft, World of Warcraft and other popular games. Combining geeks who love crypto and geeks who love gaming together is a natural fit.

While Bitcoin skeptic and Dallas Mavericks owner Mark Cuban is ahead of the game already with his investment in Unikrn, an e-sports gambling platform, a new arrival is on the scene. It’s called Kronoverse. While Unikrn aims to make gambling on e-sports a breeze, Kronoverse is more about verifying that e-sports events provide provably fair outcomes, putting results on the blockchain that fans can verify.

Either way it’s clear that the fast-growing billion dollar e-sports industry is set to be an incubator for many interesting crypto and blockchain projects for years to come. Developments in 2019 prove as much.

Aside from the four big developments impacting Bitcoin’s price last year, there were several other developments impacting the crypto world positively, including Litecoin’s halving event and Tron’s partnership with Samsung for example.

As the industry continues to develop in 2020 and beyond, 2019 will always be regarded as a big year for Bitcoin.

Jack Choros byline

Jack Choros

Jack first invested in Bitcoin in 2016 and continues to gamble with it to this day. He loves the Toronto Raptors as much as he loves cryptocurrency. Jack’s work has appeared on ESPN Radio, Yahoo Sports, OddShark.com and many cryptocurrency related publications, namely BTCGG.com.

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