The past one week has seen Bitcoin prices drop to the lowest in the past three months. The drop was triggered by a variety of events that came together to create the perfect storm for the cryptocurrency market.
China has followed up its ban on ICOs and trading by banning all foreign exchanges. Many major banks have said they will not allow their credit cards to be used for the purchase of cryptocurrencies. Also, India's finance minister has said cryptocurrencies will not be viewed as a legal method of payment and they will also try to tax crypto assets.
All of these have led to a major drop in the price of Bitcoin. This leads to the question: What is Bitcoin's future? Analysts maintain that the drop in its price is temporary. Bitcoin price is predicted to reach $25000. This will not happen overnight and will take some time. The current dip can just be thought of as the market correcting itself.
Cryptocurrencies pose a major threat to banks. Their philosophies are completely opposed to each other. Banks are all about regulation and centralization whereas cryptocurrencies are about decentralization. The rise in the popularity of cryptocurrencies has posed a major threat to the banking institutions. This is one of the reasons why major banks are refusing the use of their credit card for cryptocurrencies.
Bitcoin and other altcoins are really the future of currencies. Bitcoin has the potential to replace the traditional fiat currencies. It will take a while for this to become a reality, but it will definitely happen. Slowly, banks are going to have to learn to adapt to cryptocurrencies. This will also lead to the bans being lifted by countries like China.
Bitcoin is also a cryptocurrency that is accepted by all exchanges. You can always buy Bitcoin first and use apps like Shapeshifter to convert to other altcoins you want.
Bitcoin has a real demand and serves an actual purpose. It is the future of cryptocurrencies and it will soon recover from the dip in its price. However, the price drop does give you a unique opportunity to buy Bitcoins. As with shares, the key to making profits in cryptocurrency is also to buy when the price drops.
