Bitcoin has led a cryptocurrency revolution that brought it to new valuation heights while garnering massive international media attention, but the digital currency still has plenty of obstacles in its path. Stringent new measures for credit-card companies, for instance, are about to make Bitcoin a much less sound investment than many of its proponents are willing to admit, and the cryptocurrency still has yet to fend off charges that it’s more of a speculative asset than a useful currency.
Nonetheless, countless investors across the globe still have confidence in Bitcoin, and point towards the slow-but-steady climbing in valuation it enjoys after each inevitable plunge in value it suffers. So what’s the truth behind Bitcoin’s future, and where should aspiring cryptocurrency investors turn to for advice?
Bitcoin is losing allies
While initial reports that certain countries, like South Korea, were considering banning Bitcoin have proven to be mostly rumors, other grim predictions have come true regarding the cryptocurrency, too. Many of Bitcoin’s backers have long worried that credit-cards would abandon the fledgling currency, for instance, as many established financial institutions and seasoned Wall Street analysts view it with suspicion or outright disdain. Now, with a myriad of big name credit-card companies reportedly banning their customers from buying Bitcoin with their cards, Bitcoin holders are beginning to worry if other rumors may come true, too.
Of course, concerns surrounding fraud are still running rampant, as well. While the Blockchain technology that’s empowered Bitcoin’s rise thus far appears unassailable, Bitcoin and other cryptocurrencies are regularly lambasted in headlines as being a massive scam, and many in the public view the growing currencies with suspicion and confusion. Bitcoin receives positive coverage in the media as well, however, and many of its backers would be quick to point out that the currency’s massive valuation was attained absent any media-fawning, too.
Still, is the massive hype surrounding Bitcoin legitimate, even given its impressive rise in valuation following market setbacks? Some investors assert that it’s the investment of the decade, for instance. The fact of the matter is, while Bitcoin isn’t likely to immediately pop and send the financial futures of untold thousands spiraling downwards, it remains an incredibly risky investment, and its current woes are only going to get worse before it gets better.
With the currency having recently dropped by 60 percent from its all-time high, it’s easy to see that, while its days aren’t necessarily numbered, they’re certainly not full of potential. It’s likely that Bitcoin’s best days are behind it, and that those investors who rode out the massive wave in popularity it experienced in recent months are the last who will be seriously cashing in on the cryptocurrency.
Cryptocurrencies are hurting
If you’re trying to thoroughly understand the plight that many cryptocurrencies are currently going through, it’s best to look at the wider market instead of Bitcoin alone. These digital currencies have largely tanked in value across the board, with the total market valuation of cryptocurrencies taking a massive plunge from over $800 billion at their peak to a mere $300 billion now. It’s likely that we’ll continue to see a decline in overall valuation of not only Bitcoin, but many of its competitors in the marketplace as well, as many of those who rushed into investing in cryptocurrencies realized that they didn’t exactly know what they were getting into.
The decline of Bitcoin doesn’t necessarily spell out the end of investor’s fortunes, however; as Archicoin CEO Kairat Egemberdiev explains, “blockchain, the tech that’s made Bitcoin and other cryptocurrency technologies,, has an incredibly bright future in the marketplace, and should be expected to linger around for many more decades.”
When it comes to determining Bitcoin’s future, market analysts shouldn’t try to wrap their minds around the inner workings of central banks nor the cryptocurrencies that have risen in opposition to them; they should be examining the underlying technology that makes such investments a reality, and invest accordingly.
Investing in blockchain rather than Bitcoin may seem facetious; how can one possibly assert that Bitcoin will do poorly while blockchain is a sound investment? The truth of the matter is that blockchain is vastly bigger than Bitcoin ever can or will be, and stands to revolutionize a myriad of industries, thus ensuring that it will have a place in the market for the foreseeable future. Don’t throw your money away on baseless speculation by investing in whichever cryptocurrency happens to be drawing headlines currently; rather, do what savvy market onlookers do, and search for long-term trends and overarching patterns that could be exploited to turn a profit. If you understand the massive growth blockchain tech is about to undergo as industries everywhere flock to adapt it, you’ll be certain that, while Bitcoin may be on its way out, blockchain is on its way up, and only likely to grow from here.