2018 has been a tumultuous year for Bitcoin, with the world’s leading cryptocurrency beginning the year on a high note and ending it with a disastrous tumble that’s sent many of its investors into a panic. Despite the fact that Bitcoin’s valuation has plunged, however, some proponents continue to argue that the historical volatility of the cryptocurrency all but necessitates it will inevitably rise again. In the meantime, its critics continue to dismiss Bitcoin’s moment in the sun as just that – a brief bubble that won’t be seen again.
What’s the truth behind all the predictions behind Bitcoin? A brief dive into the cryptocurrency tells us what to expect from Bitcoin in 2019.
Dreaming of better days
The recent plunge in Bitcoin’s price hit the market hard, bankrupting many cryptocurrency investors and convincing others with cold feet to get out while the going was still good. Many long-term proponents of Bitcoin have weathered a number of immense shocks to its valuation, however, and few people understand the volatility and fast-changing whims of the market the way that cryptocurrency enthusiast do, given all the twist and turns they’ve endured over the years. Still, most of the time spent discussing Bitcoin right now is focused around dreaming of better days, when the cryptocurrency nearly hit a $20,000 valuation.
Despite the fact that many proponents are now chiding critics with the adage that “hindsight is 20/20,” the writing was on the wall for Bitcoin as early as January of 2018. When the cryptocurrency first saw its price plunged below $10,000 after making its historic gains, its investors should have understood that their moment in the sun was likely ephemeral and deeply unlikely to return. Around this time, the crypto-market grew anxious and many began musing about the beginning of the end for a cryptocurrency which has promised much but delivered relatively little.
This isn’t to say that Bitcoin is all talk and no action; the promising relationship between the world’s most recognized cryptocurrency and some major banking giants like Goldman Sachs (NYSE:GS) continues to lead many to believe that cryptocurrencies still hold huge promise and mainstream potential. It’s indisputable that the financial sector’s warming up to Bitcoin is positive for the digital token’s future, as well, though it remains to be seen if major banks will treat cryptocurrencies as anything other than alluring fads in the long-term.
Despite the fact that some banks are clearly enamored with the promise of cryptocurrencies, it should be clear to see that 2019 is unlikely to see the heyday of investing and hype surrounding Bitcoin that the cryptocurrency enjoyed in previous years. To put it bluntly, the bubble has largely popped in the eyes of many investors, and even proponents of Bitcoin are often hesitant to insist that the cryptocurrency will return to the lofty heights it once enjoyed.
Blockchain still has potential
Despite the fact that Bitcoin is facing some serious headwinds as it prepares to embark upon the stormy sea of 2019, there are plenty of reasons to believe that its underlying blockchain ledger technology still has huge commercial potential in the marketplace. After all, blockchain was one of the buzz-words of 2018, with companies around the globe pouring huge sums of capital into blockchain initiatives in a desperate attempt to gain a leg up on their chief competitors. As the new year nears, we’ll see that trend continue, as the promise of blockchain’s broad technology is much more concrete than the lucrative but evasive future major cryptocurrencies keep pledging to deliver.
Venture capital firms are continuing to invest a truly mind-boggling sum into Bitcoin’s underlying blockchain technology, for instance, with some analysts musing that we’ve seen a whopping 280 percent increase in investment in Blockchain startups just this year alone. With money like that still floating around, you can safely bet that cryptocurrencies and the encrypted ledger technology using an email parser that enables them to flourish will still linger in the market despite Bitcoin’s recent woes.
The fantastic predictions about a Bitcoin-dominated future must come to an end if the cryptocurrency is ever going to become a responsible and mainstream member of the international marketplace, however. Many of Bitcoin’s greatest foes have been its own supporters, who have willfully turned blind eyes to the weaknesses or doubts surrounding cryptocurrencies in the pursuit of their own fortunes. As countless investors can now attest to, however, those who invested about a $1,000 into Bitcoin are now lucky to get a few hundred bucks back on a good day. Don’t expect the amazing predictions and doom-and-gloom predictions surrounding Bitcoin and other cryptocurrencies to fade away just because the world’s leading cryptocurrency has suffered a huge plunge in its valuation. Despite its widespread problems, the cryptocurrency market remains vibrant and optimistic. That optimism will be needed in 2019, where Bitcoin is likely to face more headwinds in its struggle to remain viable in a competitive market.