A Look Back on Cryptocurrency

Gabriel Cabello Torres, Technology Editor

It has been nearly a year since bitcoin hit an all-time high of almost $68,000 per coin price. In 2021, cryptocurrency was on an upward trend with coins like Ethereum taking the stage along with crypto-fueled NFT marketplaces. Since then, there’s been a lot of controversy and discussion regarding the volatility of cryptocurrency in general. This article isn’t going to make a case for or against cryptocurrency but rather analyze how much it’s changed.

At the time of writing this article, bitcoin has dropped tremendously to around $19,000, about 28% of its peak price point. Alt-coins, cryptocurrencies which are modeled after bitcoin, have taken a dive as well. Ethereum is now dwindling to a price range of roughly $1,300, which is only a few hundred dollars away from its price in early 2021. Dogecoin hasn’t been having any luck recently and seems to continuously drop in price for internet-related reasons. Considering this cryptocurrency was made as a meme, it’s not surprising that the internet is more or less directing its value. Right now, dogecoin has dropped to a 6 cent price without having hit a dollar price range when it peaked.

There is a lot to be said regarding these price drops. Cryptocurrency has always been unpredictable since it’s based on the principle of being deregulated. The reason it reached such jaw-droppingly high values is precisely because of its volatility. President Biden has recently stated that he aims to regulate cryptocurrency because many day-traders and investors have lost plenty of money in the cryptocurrency market. Cryptocurrency’s situation as of late has led to a reignition of discussion regarding blockchain currency. Cases have been made that cryptocurrency isn’t viable for the dedicated trader, while others claim that the reward outweighs the risk. Others take this as an opportunity to point out all the environmental damage that blockchain can and has been causing. This is mainly because the technology that cryptocurrency mining requires uses an immense amount of energy, making it unsustainable in the long run. These issues have garnered concern on the federal level as well.

It’s obvious that cryptocurrency follows the phrase “What goes up, must come down” more consistently than other markets. However, this could also be an opportunity for folks to start investing now while the market is dropping in price. Instead of purchasing cryptocurrency at a higher price point, users can start investing now and then wait until bitcoin explodes again. That could be wishful thinking though, since who knows just how long bitcoin can last without dissipating or being mangled by government intervention. It’s all speculative, but it’s important to note that certain investments require more patience and luck than others. Only time will tell if these digital coins will stabilize or keep diving in price..

At the end of the day, cryptocurrency is just as unpredictable as any other high risk, high return investment. While it may look promising, it can also be just as punishing, which is why many investors are either wary or gung-ho about depositing money into whatever marketplace or coin wallet they can find. Despite it all, it’s still interesting to witness just how much has changed in the market after only a two-year timeframe. The cryptocurrency market is a true testament to how times are ever changing and how nothing can stay exactly the same for long in the modern age.