Bitcoin and the future of cryptocurrencies: what 2019 awaits us?
Il bitcoin price it has fallen dramatically in recent months and ... according to some analysts this would be an excellent thing for the future of cryptocurrencies. But why?
Bitcoin Price
Let's start with remembering that Bitcoin, the best-known cryptocurrency, as well as its "rivals", have seen wild price swings. Bitcoin peaked at $ 19.783 in December 2017, before falling relentlessly in 2018 and recently traded at around $ 3.500.
- Bitcoin
(BTC) - Price $44,236.00
- Market Cap
$839,633,317,634.00
Well, in order for the cryptocurrency to evolve as an instrument for international remittances, or for national and transnational payments, it must be stable. Nobody would confidently use a tool that has a price that moves up and down like a roller coaster. If the US dollar exchange rate suddenly goes from 100 yen per dollar to 300 yen, who would use the dollar to make transfers?
So for many analysts it is important that the price is stable near its fundamental value. From this point of view, the decline and stabilization of bitcoin prices are therefore welcome.
Having said that, the same analysts who are geared towards accepting this cryptocurrency "depression" also believe that the chances of another dramatic collapse are minimal.
At its peak, the market capitalization of the criptovaluta it was over $ 800 billion. And in that context, the risks of market disturbance were high. Now, with a total market capitalization of around $ 100 billion, it can be said that there is no systemic risk arising from the cryptocurrency ecosystem.
Future of Bitcoin
And for the future? Much will depend on the possible entry of institutional investors into the market, evidently important in the long run. This should not happen immediately, however, due to security and governance issues in cryptocurrency exchanges. For the development of the crypto currency, it will therefore be necessary to strengthen regulation.
Moreover, it is very likely that with strong regulation, many new cryptocurrencies could be launched and compete with the current ones. It will be like this?
