Bitcoin’s Future Being Questioned
The substantial problems surrounding Bitcoin’s Future have brought up previous concerns in the market, which most people thought had become extinct. Analysts are arguing that the Bitcoin Market won’t mature like traditional markets and take a prolonged period to maintain smoothed liquidity or volatility. Other analysts determine that the inherent scarcity of algorithms create the rapid changes in valuation for Bitcoin. This information was revealed by Alex Kruger, who works as a macro cryptocurrency analyst. He compiled an extensive poll that indicates Bitcoin will inevitably mature and offer wide price ranges. Subsequently, this would resemble traditional markets for inflation and trading commodities.
The informative survey poll completed by Alex Kruger also revealed that the timing of Bitcoins maturity is in question. This means that the time it takes for markets to settle into maturity could be prolonged, even with Bitcoin moving into its 10th year of operational activity. Other analysts well-known for their opinions, such as Willy Woo, noted that BTC wouldn’t discover its price ceiling for some time to come.
Most anticipated that Bitcoin would continuously rise after the 2018 Summer Season. Unfortunately, the total number of BTCs in circulation has dropped from their highest average. The previous yearly peak for Bitcoin was $233 billion, which has now cut down to $204 billion.
Alex Kruger believes a lack of capital market space prompts this volatility. New large-scale corporations are entering the bitcoin market, causing for the valuations amongst global investors to decrease. This is becoming a sobering reality for retail investors, who are seeing large quantities of Bitcoin purchased by these corporations. However, with the appearance of companies like Paypal or Telegram, the market becomes more standardized amongst global citizens.
Venture Capital Firms are beginning to recognize that blockchain tokens like Bitcoin act more as a commodity. It’s unlike any financial asset classes maintained worldwide, which these venture capital brokerages believe causes the increased volatility with Bitcoin. Nick Carter of Castle Island Ventures noted that the lack of coin supply to the increased demand guarantees that volatility of Bitcoin will be maintained for the foreseeable future.
Though this doesn’t benefit standard traders, it works perfectly for institutional investors. Scarcity is a significant force that drives the value of an asset higher. By these large-scale corporations purchasing large quantities of BTC, they increase a greater demand and higher level of scarcity. Subsequently, over time, this will return Bitcoin to its previous valuations or even higher.
The Chief Executive Officer of the BCB Group, Oliver Von Landsberg-Sadie, spoke on Alex Kruger’s scenario of scarcity. He mentioned that there is a more than likely chance that the volatility of Bitcoin will be a continuous constant. This individual also believes that the global adoption of cryptocurrency is far from here. However, Oliver did admit that global adoption through established brands is becoming more regular.