In our last post, we discussed the Block Size War, the intense civil war within Bitcoin. Through this conflict, Bitcoin solidified its identity as a store of value. Ironically, right after the split, Bitcoin entered an unprecedented bull market. 2017 was the year Bitcoin moved beyond a niche interest for cryptographers to a global phenomenon that led ordinary citizens to check exchange apps every minute. It was, quite literally, a year of madness.
1. From $1,000 to $20,000: The Unstoppable Vertical Rise
At the start of 2017, Bitcoin was priced at around $1,000. Few predicted it would hit nearly $20,000 by the end of the year. But the price defied all doubts. This era saw South Korea emerge as a global hub for the market, giving birth to the term “Kimchi Premium,” where prices on Korean exchanges were 20-30% higher than global rates.
2. The ICO Fever: Raising Millions with Just a Whitepaper
The other star of the 2017 craze was Ethereum and the ICO (Initial Coin Offering) fever. Ethereum’s smart contract functionality allowed anyone to issue their own tokens easily. Investors poured trillions into unverified projects, hoping to find the next Bitcoin. While many were scams, this era laid the groundwork for the decentralized future.
3. Tulip Mania or a New Financial Era?
As prices rose, so did warnings from mainstream economists, who compared Bitcoin to the 17th-century Tulip Mania. Yet, supporters remained firm, seeing Bitcoin as a challenge to central bank power. By the end of 2017, Bitcoin made its debut on the CME, marking its first step into institutional finance.
4. The Lesson: Scars and Substance
When the bubble burst in early 2018, many lost everything. However, projects that focused on real technology rather than hype survived, eventually leading to the birth of DeFi and NFTs. The year 2017 taught us the most expensive lesson: to never lose sight of a project’s core value amidst market mania.