Bitcoin's 14th birthday, Pronounced Dead 464 Times

After Satoshi Nakamoto released the Bitcoin White Paper on Oct. 30, 2008, two months later, at 6:15:05 p.m. on the 1st, 2009, the Genesis block (the first block created in the distributed data storage blockchain) was first created, and Bitcoin (BTC) made its debut in the world. The Bitcoin Genesis block address was '1A1zP1eP5QGeffi2DMPTfTL5SLmv7 DivfNa', which was the first 50 BTC to be created and included in the address at the time.

Bitcoin, which is the first cryptocurrency made with blockchain technology and has now become the largest cryptocurrency, marked its 14th anniversary on the Oct. 30, 2022.

Bitcoin has been falling after hitting a new high of $68,000 last year. Bitcoin has been continued to fall amid this year's 'brutal' cryptocurrency bear market and suffered its worst-ever fall as it plunged below $20,000 in June. During the days, many people began to say things like "Bitcoin is dead."

However, amid the 2022 plunge, Bitcoin's price decline this year is by no means a special situation. In fact, Bitcoin has survived several 'cryptocurrency bear market' since the first Genesis block was mined in 2009.

# Bitcoin Has Already Been Pronounced Dead Several Times

Bitcoin has already been declared dead several times since it came to the world.

Recently, Bitcoin touched the $20,000 level after ending a boring horizontal guarantee of $19,000 level. As a result, prospects for Bitcoin's future price are mixed.

Some analysts say that Bitcoin is strengthening its bottom line by showing 'decoupling' with the New York Stock Exchange, but some are mentioning the possibility that Bitcoin prices will fall due to a prolonged interest rate increase.

Peter Brandt, a famous U.S. cryptocurrency trader, warned, "Investors should not expect a big change for the time being," adding, "We should also keep in mind the possibility that Bitcoin prices will fall to $13,000."

Bitcoin has died 464 times by famous economists and media since Satoshi Nakamoto's invention, according to data from 'Bitcoin Obituaries', a website that only collects death news on Bitcoin. Bitcoin has died 24 times this year, and the most recent day of death was the 19th and is still being added.

It remains to be seen whether these 'death sentences' were really right or wrong. The proposition that Bitcoin did not die before it died is a simple fact.

# Growing Global Economic Uncertainty…Interested as a 'Safe Asset'

Several factors, including rising inflation and geopolitical conflicts, have raised the prices of gold and cryptocurrency over the past few years. Gold has traditionally been in the spotlight as a 'safe asset' due to financial market instability. Investors are now starting to pay attention to cryptocurrency along with gold.

Recently, Bank of America (BoA), the largest U.S. bank, released an analysis on cryptocurrency and pointed out, "The correlation between Bitcoin (BTC) and Standard & Poor's (S&P) 500 and Nasdaq, which are classified as risky assets, is decreasing," adding, "More and more investors view Bitcoin as a 'safe-haven asset'."

In fact, the correlation between Bitcoin and its representative 'safe asset' gold price has increased from 0 to 0.5 since mid-August, stressing the correlation between gold and Bitcoin.

Amid growing macroeconomic uncertainties, there is a growing perception that gold and Bitcoin, alternative investments and exchange means, can be 'safe haven assets'.

As mentioned earlier, the value and controversy of Bitcoin still remain. There is still a voice shouting "Bitcoin is dead." Perhaps Bitcoin's death sentence will not disappear easily in the future.

However, Bitcoin, as usual, is firmly present without complete sedimentation. As if proving it's nickname 'digital gold', Bitcoin is currently increasing its correlation with gold. Bitcoin is not losing its presence, as if shouting, "Bitcoin will live again and prove it again." Bitcoin is not going to die.

권승원 기자 ksw@