The Year of Crypto
If there was ever a year that truly belonged to cryptocurrency, it was 2017. The market saw Bitcoin surge 16x from roughly $970 at the start of the year to $16,000+ by December. Some altcoins experienced 100x gains, the crypto market cap soared past $500 billion, and institutional interest in digital assets hit new heights.
With Bitcoin securing legal recognition in Japan, the rise of cryptocurrency hedge funds, the ICO boom, and the expansion of blockchain-based financial systems, 2017 marked a turning point for the digital economy. However, it was also a year filled with debates, forks, and extreme volatility.
Let’s look back at the defining moments that shaped the crypto world in 2017.
Bitcoin’s Historic Rise
From Digital Cash to Digital Gold
Bitcoin’s unprecedented surge in 2017 was driven by several key events:
- Japan’s Virtual Currency Act (Q2): Bitcoin and Ethereum were officially recognized as legal forms of payment, igniting global interest in crypto investing.
- Bitcoin Cash Hard Fork (Q3): BTC holders received free BCH tokens, driving further buying pressure.
- Bitcoin Futures on CBOE & CME (Q4): Institutional involvement boosted Bitcoin’s legitimacy, pushing prices even higher.
As Bitcoin’s value skyrocketed, its role shifted from a transactional currency to a store of value—“digital gold.” This shift sparked debates within the community about whether Bitcoin should prioritize speed and scalability or maintain its status as a long-term investment asset.
Scalability Wars: Bitcoin Forks Galore
The Bitcoin network struggled with scalability issues, leading to two major forks:
- SegWit (Q3): A soft fork that improved transaction efficiency.
- Bitcoin Cash (Q3): A hard fork that created a new blockchain with larger block sizes for faster transactions.
However, by Q4, the floodgates had opened, with a bizarre wave of BTC forks—including Bitcoin Diamond, Super Bitcoin, Bitcoin Silver, Bitcoin Uranium, and even Bitcoin God. Many of these were criticized as “pre-pumped” projects designed for quick profits.
Bitcoin’s Role in Economic Crises
Bitcoin emerged as a financial refuge in countries facing economic turmoil. In Zimbabwe, where hyperinflation devalued the local currency, Bitcoin traded at nearly $14,000—almost double its global price. Similarly, in Venezuela, where inflation surpassed 2,600%, Bitcoin became a critical tool for economic survival.
Altcoins Steal the Spotlight
Massive Gains & Institutional Adoption
While Bitcoin grabbed headlines, altcoins experienced even more dramatic growth. The altcoin market cap surged from $2.2 billion in early 2017 to $350 billion by year-end.
Some of the biggest gainers included:
- Ethereum (ETH) – Cemented its position as the leading smart contract platform.
- Ripple (XRP) – Partnered with global financial institutions for cross-border transactions.
- Monero (XMR) – Emerged as the go-to privacy coin.
- Dash (DASH) – Integrated into online stores as a payment method.
- NEM (XEM) – Gained traction in the Asian market.
The ICO Boom
2017 saw an explosion in Initial Coin Offerings (ICOs), with startups raising billions of dollars through blockchain-based crowdfunding. Over 100 cryptocurrency hedge funds were established, further legitimizing digital assets as an investment class.
However, the rapid rise of ICOs also attracted regulatory scrutiny, with some projects turning out to be scams. This led to increasing concerns over investor protection and the future of decentralized fundraising.
2017: The Year That Changed Crypto Forever
2017 was a landmark year for cryptocurrency—one that saw Bitcoin’s rise to global prominence, the altcoin market explosion, and the ongoing battle over Bitcoin’s scalability. It was a year of innovation, controversy, and volatility, setting the stage for what would become the cryptocurrency industry’s most transformative era.
As the world entered 2018, one question remained: Could Bitcoin and the altcoin market sustain this momentum, or was a correction inevitable?