Just today, a new exchange for Bitcoin was opened in the US, making it the first regulated exchange in the country. This has resulted in an almost immediate sharp rise in the currency’s price, as many were predicting – and while this is obviously great for Bitcoin in the immediate term, it should not be seen as a strong indication that the currency is going to continue rising in price in the foreseeable future – if anything, experts say, the opposite might start happening soon.
Analysts have been pointing out that, while the price jump was completely predictable due to the event it was tied to, there are other developments around the currency which aren’t immediately obvious, and people should be wary of them. Some have been saying that, as a whole, the currency is actually going down in price and will likely continue that trend for a while at this point.
Part of the reason for the currency’s decline has been, perhaps surprisingly to some, the development of new technologies surrounding it, which have been stealing some of Bitcoin’s glory in certain regards. New developments in the tech sector, especially when they could have implications on cryptocurrencies, aren’t always a positive factor for Bitcoin, according to people who have been keeping a closer eye on the currency’s development. Sometimes, they could indicate that another type of cryptocurrency could have a better long-term potential, shifting focus away from Bitcoin.
In the end though, Bitcoin price is primarily determined by a supply-and-demand relationship, much like a regular stock, and this makes it more unique than other currencies, and therefore less susceptible to standard market deviations. Therefore, all of those predictions should be taken with a grain of salt. Yes, it does look like Bitcoin could have some trouble in its future – but there’s also no denying that the currency has already managed to establish itself as the most prominent name in the field of cryptocurrencies, and this popularity should not be ignored.
At the same time, various major companies have started to adopt the currency into their own businesses, including big names like Microsoft and Dell. This isn’t just beneficial for the currency in the sense that it stimulates its economy, but it also helps to solidify public trust in Bitcoin, and helps even more people realize that the currency has a lot of merit to it. When a person sees that their money is usable in a major store when they’re using Bitcoin, they would be much more likely to invest in the currency and support its ongoing development, as opposed to seeing it as something suspicious and risky.