Bitcoin in 2014: The Year Bitcoin Should Have Died (but didn't)

On January 6 of 2014, one Bitcoin (BTC) was valued at approximately $951 U.S, according to Coindesk - a height that the cryrtocurrency never again achieved over the course of the year. On December 29, BTC was valued at approximately $312 USD, down by $639 or 67 percent from its January 6 high. Yet despite the dramatic decline in value, there is still much reason for optimism in the Bitcoin world.

Even though the value of Bitcoin has declined over the course of 2014 and even though it has had its' share of troubles, the Bitcoin movement persists and will likely continue to survive for the foreseeable future.

On January 29, before the Mt.Gox collapse, venture capitalist and Internet browser pioneer Marc Andreessen explained why he was bullish about Bitcoin. For Andreessen, the opportunity is all about leveraging the power of distributed computing for transactions, without the need for a central authority. It's an opportunity, that has not changed over the course of 2014, even though the value of Bitcoin has. It's that opportunity that Andreessen sees in Bitcoin, to disrupt and re-invent the way transactions are performed that will keep Bitcoin relevant.

Markets move on supply and demand, just ask any oil trader. The price of crude oil has also fallen dramatically over course of 2014, from a high over $100 a barrel to settling in just above $50 in December.

The simple truth is that Bitcoin has value because there is demand and there is opportunity. While demand may grow or wane over any given period of time, it is clear that after a year of great challenge for Bitcoin, the opportunity remains for 2015 and beyond.

Sean Michael Kerner is a senior editor at InternetNews.com. Follow him on Twitter @TechJournalist.

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Bitcoin in 2014: The Year Bitcoin Should Have Died (but didn't)