Bitcoin is here to stay – Let’s go through a nice re-cap of what we might have missed by being blinded by the dips in price happening in the past couple of weeks.
What could drive Bitcoin’s adoption
Currency adoption – I don’t have to start talking about the trust that bitcoin has created in the financial decentralized system, but we are not there yet. We still haven’t reached the day where you could pay with digital currencies for a coffee at Starbucks – That will not be the reason why Bitcoin will skyrocket in the following years.
Technology adoption – That’s right, you hear it all over the news – All the major companies like Facebook, Oracle, Samsung are starting to look into this revolutionary technology, which is possible because of Bitcoin. A recent report from a famous consulting and audit firm, Deloitte, says that businesses who don’t consider Blockchain “Risk falling behind”.
If we look at the graph of the Technology adoption life cycle and Bitcoin’s price, we can see certain similarities. We are currently at the Chasm phase, where the technology adoption cycle has a gap – That means that it loses interest and value for a undetermined period of time. We cannot know for sure how long it will take to recover, but something says that we have reached the bottom.
Speculation
There are a lot of talks of “price manipulation”, that banks try to drive down the prices so that people who invested in Bitcoin will start hating it. Think of the people who bought Bitcoin during its peak at $20,000 – People who bet all their money and even bank’s money, on an super pumped asset.
So here comes the question, why would banks buy something that could potentially harm them in the future?
To create a massive sell-off and make people lose their trust in the asset. Before the launch of Futures, there was no other way to bet against Bitcoin, you would first have to buy it and then sell it – That’s exactly what they did. From the time the CME Futures started in December, Bitcoin’s price declined with over 60%.
Their plan has worked, you can notice people are starting to call Bitcoin a ponzi scheme or a new way to lose money. Even recent google statistics show us that the word “Bitcoin” decreased in interest among their users in terms of searched keywords.
The Chasm might be over
All of us are waiting for the storm to settle and for the prices to skyrocket to new highs, but many of us think that Bitcoin’s price will sink even lower. So who to listen to? The funny thing is that nobody can predict a short-term outcome.
Another fact to consider is that even if banks hate Bitcoin, that will not stop them to invest in it. Take a second and think about it, why would Nasdaq even consider to become a cryptocurrency exchange if they wouldn’t believe that Bitcoin and other cryptocurrencies are at their infancy.
P.S: If i left some things out, feel free to edit my answer.
P.P.S: An upvote would be appreciated.
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