From Soaring Heights to Rock Bottom
Bitcoin’s meteoric rise in 2013 had investors dreaming of a financial revolution. But 2014? Not so much. The world’s first cryptocurrency has had a year from hell, losing more than 50% of its value. Once worth over $900 per coin in January, Bitcoin is now scraping by at just $334.
To put that into perspective, holding Bitcoin in 2014 was worse than betting on the Greek stock exchange (which fell by 28%) or the Argentine peso (which dropped 24%). Even the free-falling Russian rouble has outperformed Bitcoin, losing only 51% of its value. Ouch.
Scandals, Hacks, and Fading Hype
Bitcoin’s brutal year started with the collapse of MtGox, once the biggest Bitcoin exchange. If that wasn’t enough, Bitcoin Foundation board member Charlie Shrem was arrested for money laundering, further shaking confidence in the cryptocurrency.
Throughout the year, the market was rocked by hacking scandals, thefts, and regulatory crackdowns. But perhaps the biggest blow? Silence. Bitcoin thrives on hype, and as public interest faded, so did its value. Without constant buzz, investors started pulling out, accelerating the downward spiral.
Optimists Say Bitcoin Is Still Growing
Despite the price crash, some industry leaders insist Bitcoin is far from dead. Brian Armstrong, CEO of Coinbase, remains bullish. He argues that Bitcoin’s infrastructure is maturing, pointing to major US merchants now accepting it as payment.
“In early 2014, no billion-dollar company accepted Bitcoin,” Armstrong told The Guardian. “Now, there are at least ten.”
Coinbase has also expanded its reach, partnering with Time Inc. to allow Bitcoin payments for magazine subscriptions. Meanwhile, consumer Bitcoin wallets have grown tenfold over the past year, and merchant activity continues to rise. According to Armstrong, the fundamentals look strong—even if the price doesn’t.
If You Think Bitcoin Had It Bad, Meet Dogecoin
If Bitcoin suffered in 2014, Dogecoin got obliterated. The meme-based cryptocurrency had its moment of glory when the community raised $30,000 to send the Jamaican bobsled team to the Winter Olympics. A few months later, Dogecoin even sponsored a NASCAR car, the #98 Moonrocket.
But then, it all collapsed. The biggest Dogecoin trading platform, Moolah, crumbled amid accusations of fraud and hacking. Without a strong infrastructure to support it, Dogecoin’s wild ride came to a screeching halt.
What’s Next for Bitcoin?
Bitcoin has been declared “dead” countless times before, only to bounce back stronger. Will 2015 be the year of recovery? Or is this the beginning of the end for the once-revolutionary cryptocurrency?
One thing is clear: Bitcoin isn’t going away quietly.
