“Everything is going as I foreseen” is probably one of the most epic lines I can remember, not only because those words were spoken by the dark overlord ruling the galaxy just before his demise, but also because it mirrors so many brilliant human minds, when voicing their opinions on fields of which they are experts; of course bitcoin is no different:
–this article shouldn’t be taken as financial advisement as it represents my personal opinion and views. I have savings invested in cryptocurrency so take whatever I write with a grain of salt. Do not invest what you cannot afford to lose and always read as much as possible about a project before investing. You’re always responsible for your own money–
Most of you have seen this little, tiny, minuscule, almost invisible jump in volume that happen on the 12th April 2018. So far, it has been the singular highest jump in volume ever seen as market cap went from ~ $270 Billion to ~ $300 Billion. It means around $30 Billion were added to the market in less than 3 hours.
Bitcoin’s dominance remains over 40% and I suspect it will continue to rise as most money that just entered the market should be institutional. There are some strong contenders, like Ripple, due to the nature of the backers (mainly banks and financial institutions).
Nevertheless, there are two ways of looking at this, in my own personal opinion:
Because there is currently a huge time gap between technological developments and price, meaning price moves due to pure speculation rather than technological advancements or issues that arise. If you think differently look at the examples of IOTA or Verge which have been hacked, however prices of both coins kept rising afterwards. Heck, think about bitcoin: when did the price hit its maximum valuation? At the same time fees were the highest ever.
Price is dictated by volume and what happened was a grand spike in smart-money coming into the market. Maybe some of the money that left at the end of January is coming back.
Some technical analysts believe price will continue to rise. Then again, the opposite might happen depending on many factors:
We cannot forget price is crucial to bring new people into the market, but to keep those users technology must answer today’s problems. People do not care if money is centralized, decentralized, distributed, digital, or physical; People care about:
For truly massive adoption either the bitcoin team thinks of a way to easily distribute it among where is needed, this is, in countries where banking is limited for example, or a benign group of people develops a way to distribute the currency directly to people in exchange for something, other than money (time, attention, services, etc). I understand those who think until this currency is used by business worldwide it’s a joke. I get it, I truly do, however if the purpose of this cryptocurrency is to bank the un-banked and to be successful in connecting communities worldwide by allowing anyone to transfer and store value over the internet, then maybe the right way to do this would be to simply find ways to trade bitcoin for time and services in those places.
–note: i did not mention the question “how long does that money take to get to another account?” as the current banking system needs 3-5 business days for international transfers to take place. When the bitcoin network is clogged, i have personally waited around 24h for a bitcoin transfer to get approved. It still beats the banking system for personal transactions, which is the final aim of this cryptocurrency (in my opinion)–
The reality, of course, is that acceptance dictates the rules of the game; businesses have to start pushing cryptocurrencies by accepting them. At the end of the day for cryptocurrency to be used, all intervening agents must participate.
We must not forget there will always be two sides to the same coin:
Doing one alone would be unwise as balancing both seems to be the right way for the market to grow. My only hope is that the entire community keeps improving the consensus in bitcoin (and other cryptocurrencies), never forgetting its true purpose:
To empower those who are financially invisible.
Featured image from Shutterstock.
Last modified: June 15, 2020 8:21 PM UTC