At the time of writing, the world’s leading cryptocurrency digital bitcoin is floating around at $3,312, as per www.coinmarketcap. Last year in December, bitcoin was almost touching the mark of $20,000 whereas this time around, it is down in the lows. Some people in the financial markets are coming up with the claims that the bitcoin bubble has officially been burst? So, is this the end for the asset? In my opinion, we just don’t know yet. The bubble might have burst, but the end, probably no.
There are a lot of issues that are associated with the world of bitcoin and it sure is in its development phase. The usage of bitcoin for illegal activities is a major issue. Besides, the general acceptance of the asset among the people is also on a relatively lower side, but all this does not specify that the asset is dead. Developments are being made in this world day in and day out. There are a few things that remain to be seen before we can officially declare this asset dead.
The demands for the establishment of a crypto-linked exchange-traded fund (ETF) have been percolating around in this space for quite some time. But as of yet, we have not seen an approval for this from the regulatory body in charge, the United States Securities and Exchange Commission (SEC). Quite recently, SEC pushed its verdict regarding the VanEck/SolidX ETF proposal to as late as February 27, 2018. The approval has not been granted by the SEC owing to the issues like volatility, liquidity, custody, valuation, manipulation and other risks that are associated with the asset. But if an ETF gets established, things might pump some air back into bitcoin.
While some people believe an ETF will have no significant effect, some believe that it will prove to be quite revolutionary for the asset as more and more institutional money will pour into the market. Platforms like Bakkt, which aims to provide an ecosystem for selling, buying, storing and spending cryptocurrencies, might also help the asset grow and mature.
Yes, we might not see a bull run that we saw last year again and bitcoin might not see drastic changes, but it does not mean that the asset is dead. There is a lot left to see, and it cannot be predicted what’s about to happen.