Bitcoin at this point in time has a small footprint in the multi-trillion dollar market. They key challenge of the bitcoin today is stability. Analysts argue in order for bitcoin to stabilize it needs to be fiat in value. In the real sense of the word fiat are currencies supported by soveriegn states. However due to bitcoins unique nature of being decentralized. It’s subject to instability of currency therefore making investors think twice in investing.
Another point analysts argue is the premise of currencies are stable in order for it to be recognized and be treated as a currency. However the unique nature of it being decentralized contributes as well to its high value. While today we see peaks and valleys of value. I think that bitcoin is on its early stages of birth currency. Typically something new being introduced to a body is subject to rejection. If bitcoin does evolve into challenges it faces. It would be among of the first of its kind therefore making it valuable.
While we don’t see timeline on when and how it will stabilize. It would be good to identify factors that will point it to the direction of stability.
