By Henry H. Ngan, MBA, CPA
Since an infamous white paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System” was published in October 2008 by Satoshi Nakamoto (his or her identity has never been confirmed), it was the beginning of an era of Blockchain & Cryptocurrency. I was often asked how Blockchain has gotten so much attention over the last 9 months or so.
In my opinion, what really got this whole Blockchain evolution started was the significant price appreciation of Bitcoin in 2017. At the beginning of 2017, the price of Bitcoin started at around $1,000 (USD). As the year went on, it went as high as around $20,000 and closed the year around $13,000 or so. Bear in mind that the majority of the gains happened in the second half, in particular 4Q17. The chart below shows Bitcoin prices in 2017.
Assuming you bought Bitcoin at the beginning of 2017 around $1,000, at it’s highest around $20,000, that’s approximately a 20x or 2,000% return. At the close of 2017 around $13,000, it would effectively net a 13x or 1,300% return. With these kinds of extraordinary returns, that is what really got many people (both investors & speculators alike) excited about it. Thus, it’s no surprise that many started looking into Bitcoin. Individuals started researching Bitcoin and other Cryptocurrency to try and understand what this euphoria is about. By then, some people might have realized that Bitcoin/Cryptocurrency are the digital assets/currencies (applications) and Blockchain is the underlying technology (foundational technology). Another way to look at this is to think of Facebook, Google, and Amazon as the applications and the Internet as the foundational technology. In essence, it was the significant price gains of Bitcoin in 2017 that have many discovering Blockchain, and thus uncovering the potential and excitement of this new technology.
In future articles, we’ll continue to explore Blockchain as the foundational technology and it’s applications, and the potential impact on various industries.
Henry H. Ngan, MBA, CPA
Note: Certified in BlockchainTM & CryptocurrencyTM
Dated: July 2018
Henry is a CPA in the state of New York and a Certfied Blockchain and Cryptocurrency Expert who graduated with his MBA from Fordham Gabelli School of Business and also studied at Columbia Business School. A speaker, lecturer and thought-leader, Henry considers himself a Blockchain Evangelist and is a FinTech expert. He is also fluent in English, Mandarin and Cantonese.
For more on Henry Ngan’s professional background, please visit his LinkedIn profile: https://www.linkedin.com/in/henry-h-ngan-mba-cpa-bb4b944/