Things have not been so well for the world’s leading cryptocurrency bitcoin lately. The asset has started to struggle in terms of its price stability. While some people claim ambitiously that it might even replace fiat in the future, things certainly do not suggest so right now.
At the time of writing, the digital asset is floating around the price of $3,204 as per www.coinmarketcap.com. Bitcoin is continuously taking the downward path. This current price mark of bitcoin is very low as compared to the heights that it touched last December. It almost touched the $20,000 mark attracting the attention of various financial spearheads in the game. But since then, it has stumbled a lot on its way. Volatility in price has become something that destroys the reputation of this asset in the eyes of the general public. When price fluctuates with the market shooting up or breaking down in a matter of hours, it becomes almost natural to not use this asset as a payment method.
In October, things started to shift the momentum a bit. Much improved price stability was being shown by the asset. It maintained its position in the $6K range for quite some time with a general trust among the public becoming more and more stronger. But then again, it saw serious declines in the month of November and December and as a result, a lot of investors lost a lot of money. The credibility of bitcoin as a digital asset also came into question. Now, some people in the financial sphere even claim that the bitcoin bubble has officially burst now.
The thing to realize here is that the bitcoin world is still very nascent. It is still in its evolutionary phase with various entities identifying its future role. Whether it will become the next gold or will it act as a global digital currency, much can’t be said at the moment. The technology lying underneath bitcoin is also in its evolutionary phase right now. Developments are being made in the technological and regulatory frameworks associated with bitcoin at a rapid pace. There are a lot of problems associated with bitcoin, such as volatility, and there are ways it can be used for illegal activities, but a final verdict cannot be given regarding it just yet.