2016 - A Good Year For Crypto-Money

Looking back at 2016, it brought many bad news of wars, refugees crises and deaths of pop culture idols such as David Bowie, Prince, Leonard Cohen and George Michael.

If we focus our view on the financial world, there are also many things that may worry us, like the crackdown on cash in India and Europe, negative interest rates and the ever growing debt of nearly all governments. 

The Bitcoin price in 2016

But if you are invested in decentralised money based on cryptography such as Steem or Bitcoin, these bad news are good news. Decentralised money has developed into a safe haven for people who no longer trust banks and governments. And we are more and more.

2016 has been a very good year for Bitcoin. Its exchange price rose from around 430 US dollars on January 1st to more than 900 US dollars as of today, making it the best performing asset of the year. I would not be surprised if Bitcoin hits the 1000 USD mark again before the year ends.

2016 has been a great year for Steem, too - it was the year of its birth! The price curve does not look as sexy as the one of Bitcoin, with a peak in July and a downward trend ever since. But that does not bother me at all. 

The Steem price in 2016

Do you remember that in 2011, when Bitcoin first received some media attention, its price curve looked exactly like that? It rose quickly from a few cents to a peak of 30 US dollars in June and then fell and fell until a low point of about 2 dollars in December. Many people thought that Bitcoin was dead then, and it has been declared dead many times ever since.

But an investment of 100 dollars in Bitcoins back then would now be worth nearly 50,000 dollars! What a pity that I was too skeptical in December 2011 and missed that opportunity...

It's hard to predict whether Steem will see a similar development. The first mover advantage of Bitcoin together with a strong network effect is not easy to top.

However, it is not the exchange rate alone that counts. Steem has brought many people in touch with crypto money who thought it was something for geeks before. It has some features with a lot of potential, like its high speed and the total lack of transaction fees. If we create useful products based on these features, Steem can become a huge success.

The 11 most successful cryptocurrencies according to Coinmarketcap.com

We have also seen some other cryptocurrencies with a stronger focus on anonymity such as Dash, Monero and Z-Cash performing well. The competition of currencies, as nobel prize winner Friedrich August von Hayek proposed it back in 1976, has become reality.

May the best currencies win! 

Picture by Adam Carter CC-by

I wish you a happy 2017 with a lot of growth and success in all realms of life!