The world’s leading cryptocurrency in terms of market capitalization, bitcoin, had quite a rough last year. After almost hitting the $20,000 peak last December, the asset dropped down in the lows of $3,000 this December. But now, bitcoin is back in the $4Ks. At the time of writing, it is standing around $4,066. The market is seeing a slight recovery trend.
After the drop, it was even being said by some experts in the financial game that the bitcoin bubble has officially popped. All the crypto enthusiasts and investors who had invested a lot in this game are now taking a sigh of relief after seeing this recovery. So what picture regarding this asset is in front of us as we move forward? Is the asset going to die out? Or is it going to gain new heights? Here’s what you need to know.
Volatility is an issue that has been linked to bitcoin since the beginning. It is one of the pressing issues associated with this asset right now along with problems like liquidity, custody, manipulation etc. Volatile prices also hold back users for using this asset as a source of making purchases. Market rises up and falls down in a matter of hours, it is only natural not to use it as a currency. Institutions and big corporate heads are holding back from entering this space owing to such problems and as a result of this, bitcoin is not getting the widespread adoption it aimed to achieve. Official acceptance of this asset is on the relatively lower side.
But despite all the issues that are present right now, there are certain steps that might push this asset mainstream, and a bitcoin exchange-traded fund (ETF) is one of them. As of now, no crypto-linked ETF has been approved by the United States Securities and Exchange Commission (SEC) owing to the illegal activities associated with this world. While some predicted that it might happen by the end of 2018, it does not seem to be the case now as we reach the end. 2019 or 2020 might see this happen and if it happens, the inflow of institutional money in the crypto arena might make this asset mainstream and push its price higher.
Platforms like Bakkt, which aim to provide secure ecosystems for storing, spending, buying and selling cryptos, will also help this asset in the long run.
All in all, there is a lot that needs to be seen yet. A lot of developments await. The crypto world is still pretty nascent. It is pretty hard to give any final verdict regarding it right now. Let’s wait and see how things unfold.