Bitcoin trading has gained some serious traction in the financial world since the magical bull run of 2017. Just recently, in a report published by Diar, it was reported that bitcoin transaction fees have hit a new low not seen since 2014. So bitcoin has not been falling just in terms of its price, transaction fees are also coming down. Will lower transaction fees increase bitcoin trading volumes? There’s a lot to factor in here.
Last month, the number of bitcoin transactions reached a one-year high. This means that the bear run has not completely destroyed the bitcoin world. People are still hovering around in this space. But what all of this signifies for bitcoin trading? Will the volumes increase as we move into the future. Here’s what you need to know.
There are some core issues associated with bitcoin that need to be addressed first before we see the bitcoin trading volumes explode. These issues prevail in the form of volatility, manipulation, liquidity, custody etc. The regulatory body in charge of approving an exchange-traded fund (ETF) has also not approved it as of yet due to these issues. So if bitcoin trading is to increase and grow in the future, the main thing it needs is acceptance among the general public. How will it get acceptance, this depends a lot on the elimination of the negative forces prevalent in the bitcoin world.
Since bitcoin is a new technological innovation, there aren’t many laws and regulatory frameworks around it. Taking advantage of this, many negative elements have seeped into this space. Scams have taken hold. Whales are manipulating the market in their own favor. Many investors have lost a large amount of money owing to the fraudulent activities present in this space. The major connotation attached to bitcoin in the media is also negative. This establishes a general notion that the bitcoin world is essentially bad. The general public and the investor community hold back from entering this world owing to this negative vibe.
Besides, the bitcoin world is too uncertain. Nothing can be said for sure where it is headed. The only thing sure about bitcoin is being unsure. So if bitcoin trading is to increase in volumes in the future, bitcoin needs to solve these core issues that are associated with it. With solving its inherent issues, it is very hard for the asset to survive and grow in the financial market.