Bitcoin is not dead: See 4 reasons that prove it

Bitcoin is not dead. Find out in this article which is the 4 reasons that prove this, even in the face of a low scenario that has been taking shape for months.

Amidst the downfall of the crypto market and troubled times in the macro economy, Bitcoin lost almost 65% of its value from the historic top, reaching the $17,000 range at times. With that, it didn’t take long before new statements that Bitcoin died began to emerge.

In November, the search for “Dead Bitcoin” reached a new peak in Google searches, according to Google Trends data.

This record reflects investor anxiety and media pessimism after a challenging year for the cryptocurrency market. In the face of so much fear and uncertainty, it is important to make it clear that there are solid reasons that show that Bitcoin is not dead. In this context, we will introduce the main ones. Find out what they are!

4 reasons why Bitcoin is not dead

Those who follow our content know that we always remember the importance of looking at the fundamentals of Bitcoin in times of decline. This is because BTC’s characteristics related to scarcity, decentralization, and security remain firm even in the face of market declines.

In this way, you begin to understand the asset in more depth, making it easier to calmly assess the contexts of declines and filter out sensationalist news. This will also give you more confidence to take advantage of opportunities to buy low and improve your average price.

With that in mind, check out some of the most important fundamentals to consider in this bear market period, which proves that Bitcoin is not dead:

1. Bitcoin Hashrate and its Mining Power

Hashrate is the measure of computational power used to mine Bitcoin, which indicates the difficulty of mining the cryptocurrency. 

This is a good indicator of the security and health of the network, as the higher the hashrate, the harder it is to mine the cryptocurrency, which means that the asset is less subject to attacks.

This is a technical-operational dynamic that in itself does not affect market prices, but it is influenced by prices and helps to understand the community’s sentiment about Bitcoin:

When Bitcoin prices are lower than the norm, the profitability of the mining activity also reduces, as miners are paid in BTC. When this happens, miners are expected to decrease power consumption by turning off some machines, consequently reducing Bitcoin’s Hashrate and mining difficulty.

However, even with the bear market, the Bitcoin network reached the all-time high Hashrate in November 2022 and again in January.

The rate has been showing an upward trend considered interesting by analysts; because it shows that the asset continues to attract miners and that the network is becoming increasingly secure.

Even with the decline in Bitcoin prices and miner revenue since the beginning of the year, the issuance of new Bitcoins on the market continued what was already predicted for the inflation rate in its code, since 2009, following a linear and programmed increase. Unlike state currencies, this cannot be changed.

2. Bitcoin has been increasingly adopted

Bitcoin is growing in adoption and we can see this through different factors, for example the increase of cryptocurrency ETFs on our exchange, large companies have set up Bitcoin reserves, more establishments have started to accept Bitcoin as a means of exchange, and governments of countries and cities have already adopted BTC as their official currency.

Now, in addition to El Salvador, G20 countries are already discussing cryptocurrency regulation and more governments are softening their stance on crypto assets in an attempt to prepare a regulatory base to capitalize on technology coming from the crypto sector and Blockchains.

As much as the subject of regulation divides the crypto community, the fact is that as more countries shape and implement actions to regulate Bitcoin and more companies adopt the cryptocurrency, more institutions and people start to gain confidence in BTC.

In addition, it is worth noting that the growth in adoption and security of the Lightening Network, the second layer of Bitcoin focused on micropayments, also reinforces the greater adoption of Bitcoin, especially for day-to-day payments.

This favors wide-scale adoption and is positive for demand, which in the long run could have a positive impact on the price of Bitcoin.

3. History and prospects for long-term appreciation

When we make a historical comparison of Bitcoin’s performance, we can see that the lows end up being overshadowed by the big gains. More than that, in the long term, the horizon of gains remains.

Especially since 2017, investors’ view of Bitcoin has changed a lot. Until then, BTC was seen as a gamble, more restricted to enthusiasts in the crypto community.

Since then, with the increase in information about cryptocurrency and the emergence of other solid projects in the crypto sector, Bitcoin has been increasingly seen with a natural look and better accepted in society. As of 2020, we saw a greater entry of institutional investors into the crypto market, completely changing this scenario.

And much remains to change. Analysts reinforce that one of the reasons for Bitcoin’s fall in 2022 is the misreading that institutional investors still make about the crypto active, leading the crypto market to be seen as a continuation of the American technology market.

As a consequence, since 2020, the crypto market has been moving very similarly to the stock market. With that, we saw the FED’s monetary tightening posture also affect the price of Bitcoin and other crypto assets.

Therefore, Bitcoin’s recent decline is more related to a misinterpretation of the traditional market. Meanwhile, the crypto market and the technology employed continue to be developed and matured, and the perspective of adoption, growth and appreciation of this market in the long term remains standing.

4. It is not the first time that Bitcoin has been declared dead…

Bitcoin has already been declared dead more than 460 times, according to the obituary of 99Bitcoins, a website that gathers news and statements from public figures that decree the end of Bitcoin every time the asset faces declines. In 2022 alone, there were 27 deaths declared.

Indeed, this is not a good time for the crypto market. But as we’ve just seen, Bitcoin’s main features and its growth prospects haven’t changed big enough to cause its price to plummet.

There are macroeconomic factors that have affected the price of Bitcoin, such as the correlation with the stock market, the more aggressive stance of the FED in raising interest rates, the failure of important projects in the crypto market, not to mention an ongoing war and the risk of a global recession.

These are all the most likely factors to explain the current price drop. Bitcoin’s network-related fundamentals are getting better over time, while cryptocurrency adoption only grows.

As such, the aspects discussed here indicate that, in fact, Bitcoin is not dead. On the contrary, even at other times when it was decreed that there were no more chances for Bitcoin, the asset recovered.