The crypto market is going through a very tough time right now. Different crypto projects are struggling to manage their finances owing to the bear run that has engulfed the market for quite some time now. After almost touching the mark of $20K last year, bitcoin has now come down in the lows of $3,000s. At the time of writing it is currently standing at around $3,311. Here is the graph that shows bitcoin’s performance over the past year.
The drop in bitcoin’s price is major. Some people in the finance sector are even claiming that the bitcoin bubble has now officially burst. So what do we expect? Has bitcoin lost its chances of becoming a global digital currency? In order to get a perspective on this from someone who is actively involved in the crypto world, BlockPublisher got in touch the founder of Elevated District Media, who also goes by the alias of “Nye The Crypto Guy” on Twitter.
Talking about this price drop destroying the image of bitcoin as a global digital currency, Nye said:
Maybe for some people. But only those who don’t see the long term potential.
Further talking about this drop hurting the asset’s chances of actually doing so, Nye said:
It has seen it before and it will probably see it again.
The message here seems to be very clear. This price drop might result in some people moving away from bitcoin, but the people who trust this asset and the technology underneath will most likely stay. Also, price drops are something that bitcoin has seen from the beginning. Volatility has been linked to it since the start of its global eruption and the people who trust this asset hold their faith strong. Although this is actually one of the major issues that hurt the reputation of bitcoin overall and decrease its chances of becoming a source of making payments. As the price fluctuates, it becomes almost natural not to use it as a currency.
All in all, this price drop will surely result in some fallout. Some people will move away from this world while some will stay. But still, there is a lot left to be seen. Establishment of a bitcoin exchange-traded fund (ETF) and platforms like Bakkt might help this asset grow and mature. What will happen now, no one ever knows for sure. The only thing certain about the world cryptos is uncertainty.
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