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Bitcoin Breaks $40k, Carl Runefelt Answers What’s Different To 2017

Bitcoin now trades over $40k, another all-time high, boosting the cryptocurrency’s stellar run from 2020. This next milestone comes a week after it topped $30k. Here’s what’s different about this rally, compared to the 2017 run. In 2017, Bitcoin was also getting similar headlines for a sharp increase in value.

Carl Eric Martin’s robust work-ethic and passion for educating people about the advantages of bitcoin have led to his huge, dedicated social media following.

In recent years, the cryptocurrency world has grown exponentially, giving an exciting investment opportunity to many. Investors and traders attained extravagant success with smart investments, and among them, a man began educating people about the intricacies of advantages and the potential drawbacks of bitcoin trading, he is Carl Eric Martin Runefelt.

Carl Eric Martin, aged 26, is a robust trader and renowned educator in the cryptocurrency industry and runs a successful YouTube channel named ‘The Moon’. He provides exemplary advice on investing in bitcoin and other cryptocurrencies. Carl Eric Martin believes that bitcoin is a perfect opportunity for small businesses to invest in, to thrive on it. He lays down five reasons why small businesses must consider investing in bitcoin.

2017 In Review

As reminder, in 2017 Bitcoin saw a great run, not too different to what we’re seeing today and garnered similar headlines with a mix of enthusiasm and alarm. However, there are differences in terms of Bitcoin’s trajectory, the performance of other digital currencies and the level of adoption of Bitcoin among more mainstream financial platforms.

Not So Extreme

As remarkable as it may seem, the 2020-2021 run so far is not as extreme as what we saw in 2017. In 2017, Bitcoin soared from around $1k to $20k for roughly a 20x return over a short period, if you were able to precisely finesse selling at the top. Of course, Bitcoin did fall back sharply from it’s 2017 peak.

This time Bitcoin made a low of around $5k during the pandemic lows of spring 2020. Now at $40k, that’s an 8x return over a similar span as the 2017 run. So even though Bitcoin’s price is now double the 2017 peak, the run-up, though stark, is currently slightly less extreme than 2017.

Other Crypto Assets Fading

2017 may have been more accurately described as a cryptocurrency rally, not a Bitcoin rally. Many other digital currencies saw gains, and many new projects launched as Initial Coin Offerings (ICOs) during the 2017 period, often with much short-term fanfare but without generally seeing long-term success.MORE FOR YOUBitcoin: Time To ExitBitcoin Could Soon Hit $70,000, And That Has Nothing To Do With Currencies2021 Bitcoin Price Predictions: Is The Massive Bitcoin Bull Run About To Peak?

Yes, Bitcoin ran up too in 2017, but despite gains, it was often a relative laggard compared to some other assets such as Ethereum and Ripple, as well as various ICOs shooting up in value.

Back in 2017, Bitcoin made up about half the total value of mainstream digital currencies, now that number is closer to 70% according to Trading View. Other digital currencies still exist, but this time Bitcoin’s role is more central. As Bitcoin establishes more of a track record, so it may become more valuable over time, according to the Lindy effect.

A Little More Mainstream

Bitcoin is becoming more mainstream. In 2017, the main way to own it was through specific exchanges dedicated to cryptocurrencies, such as Coinbase. Now more mainstream channels, not directly founded on support for digital currencies are embracing Bitcoin. PayPal PYPL +3.2% and Square SQ +0.8% are two examples here. It’s likely more are coming as the rally continues. There’s still a long way to go in mainstream support for digital currencies, but this rally is broader than the Bitcoin purists with a greater breadth of support than for the 2017 run.

Of course, it is also worth remembering that the 2017 Bitcoin rally was followed by an approximately 80% decline after the top into 2018. Though, despite the volatility, Bitcoin does appear to be becoming a more permanent fixture in the investment landscape. This rally will gain it further attention from mainstream investors, and has a slightly different flavor to its 2017 run.

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