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The technology behind bitcoin will be the currency’s saving grace
Price volatility has always been a part of bitcoin’s DNA since it was established nine years ago, Patrick J O Brien believes the end is far from nigh for this digital token
While many had thrown in the towel or read the last rite for bitcoin, it is certainly not going to go away and another bolt could be shortly on the cards.
With 16.8 million of bitcoins being circulated in the market currently, the increasing scrutiny of the cryptocurrency market by governments plus enhanced regulation has not surprisingly been one of the major causes in the dip in prices. Since the outset its rising phenomenal had left monetary authorities sprinting for solutions.
Central bankers around the globe have always had a control over their fiat money but cryptocurrencies had put a dent on such a control. State actions over banning cryptocurrencies had strongly influenced the digital token’s value. However, experts predict that demand for cryptocurrencies is set to sky rocket as more people get to know about them and use them
The crypto-markets are volatile and investors often have to look beyond the initial panic of a large price drop, not let emotions get in the way and look at the long-term likelihood of a positive return. Bitcoin, Bitcoin cash, Ethereum, and Ripple are some of the most well-known and talked about cryptocurrencies with largest market caps.
While their short-term value fluctuates depending on market news, the underlying technology, blockchain will survive and prosper. Even if the craze for Bitcoin abates, the power of the “blockchain” tech behind those currencies is very real.
For years market watchers and economists have been dumbfounded on bitcoin’s phenomenal rise and tumble. Latecomers who wanted to hitch a ride on the bitcoin waves are staggering at their losses. Bitcoin’s almost 1,900% rise had defied logics or economic fundamentals. Despite the drop to about US$7,500 yesterday, more than two-thirds of its highest value, the mother of cryptocurrency is not throwing in the towel as the leading digital token.
The digital token had more than a fair share of its ups and downs. But many experts are still positive in the longer term, with the Cryptocurrency Predictions Survey estimating Bitcoin will be worth $33,000 by the end of 2018.
