2017 the Year of Bitcoin

As we prepare to leave 2017 behind and enter 2018, we can’t help but be amazed at the rollercoaster of a year that cryptocurrencies had. Many analysts who make it their goal to be the ones who correctly predict the influx of Bitcoin and other cryptocurrencies were proven wrong by this ever changing market. There is no one who could have predicted the meteoric rise that Bitcoin had in 2017. Even its most outspoken objectors must admit that we leave this year with cryptocurrencies being accepted by the mainstream public.

What started with a paper published by the still anonymous Satoshi Nakamoto has evolved into a widespread phenomenon. So many major events in the past years have helped contribute to the powerhouse that Bitcoin and cryptocurrencies have become today. The most expensive pizza in history, the 2013 crash, the Mt. Gox theft, the rise of Ethereum, etc.

Here is a list of some of the most relevant highlights cryptocurrencies had this year:

January 1stBitcoin starts the year at 998 dollars

January 11thThe climbing value of Bitcoin catches the eye of the Chinese regulators as the Yuan devalues

January 23rdExchanges from China start to enforce trading fees from Bitcoin transactions

February 22ndBitcoin’s Market Cap hits 18 billion

March 2ndBitcoin outperforms Gold Parity

March 14thBitcoin’s main competitor Ethereum doubles from 15 to 30 in just a couple of days.

April 25thThe Cryptocurrency Market reaches 30 billion

May 4thThe Cryptocurrency Market reaches 42 billion

May 12thThe Wannacry Ransomware attacks occur and within a few days infects more than 230,000 thousand computers, hackers demanded ransom payments in Bitcoin.

May 21stDespite the Wannacry Ransomware attacks and expert predictions Bitcoin reaches $2,000 in the global market.

May 26thAustralian Financial Market discusses the possibility of Bitcoin replacing the US dollar at some point.

June 6thCryptocurrency Market Cap reaches 100 billion

June 14thHedge fund clients plead Goldman Sachs to report on Bitcoin

July 23rdBitcoin cash starts future trading

August 1stBitcoin cash deviates from the Bitcoin blockchain

August 14thThe Bitcoin Market surpasses Paypal

September 4thChina declares a ban on ICOs

September 16thFinancial Regulators from China call for cryptocurrency exchanges to stop operating by September 30

September 29thJapan authorizes and licenses 11 cryptocurrency exchanges

October 12thBitcoin hits 5,000 in the global market

November 8thThe previously planned Segwit2x fork is cancelled

November 20thTether, a company that helps exchanges convert fiat currency to tokens is hacked for nearly 31 million dollars

November 26thBitcoin reaches $11,000 shattering expectations

December 1st Bitcoin “crashes” to about $9,600

December 2nd Bitcoin is on the rebound and back to about $10,600 at the time of this writing.Consumer Resource Guide

Because of the success of Bitcoin and cryptocurrencies altogether, 2018 will feature new competitors in the cryptocurrency market. Companies like Ripple, IOTA, Dash (formerly Xcoin), and Litecoin will all try to give Bitcoin a run for its virtual money.

And the IRS has just fired the first shots in an all out war on Bitcoin. Expect the IRS to come down hard on US citizens trading in US exchanges like Coinbase.

I expect advanced traders and ICOs to exit the United States in early 2018 as they catch on to what the IRS and SEC are up to. Professionals will set up offshore corporations or trusts and hold Bitcoin abroad.

Finally, as we move through 2018, traders will begin to understand the tax planning techniques available to Bitcoin investors. For more, see: How to Trade Bitcoin Tax Free.