Breaking News
0

Bitcoin Backers Have A New Hurdle To Face

By Alex NewmanCryptocurrencyFeb 12, 2018 09:34AM ET
www.investing.com/analysis/bitcoin-backers-have-a-new-hurdle-to-face-200289443
Bitcoin Backers Have A New Hurdle To Face
By Alex Newman   |  Feb 12, 2018 09:34AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

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.

Bitcoin Backers Have A New Hurdle To Face
 

Related Articles

Bitcoin Backers Have A New Hurdle To Face

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email