Bitcoin – At the Crossroads of the Future

The Predictions

As people all over the world increase their awareness concerning the crypto-currency revolution, investment experts are lining around express their opinions. In recent weeks, the pro-crypto forecasters are predicting numbers that defy gravity. It’s not uncommon to visit a prognosticator on TV explaining why they believe Bitcoin is destined to hit ranging from $250,000 and $500,000 per coin within the next two years. At $500,000, the coin would have to increase more that 6000% from it’s current levels. The numbers are mind-boggling.

On the far side of the fence, we discover the naysayers. There are plenty of well-respected financial analyst who aren’t afraid to warn people about the investment bubble. Some even admit that crypto-currencies might still involve some play left in them, but sooner or later, the bubble will burst, and people are likely to get hurt. To operate a vehicle home their point, they just need to think about the IPO bubble of 2001.

The Technical Hurdles

The crypto-currency revolution continues to be in its infancy. Therefore, most coins, Bitcoin included, are trading without historical indicators to help investors. Wasabi Wallet can be a free market in the purest form. Unfortunately, free market trading is vunerable to influence from all directions. Therein lies the rub for crypto-currency investors. Without history to fall back on, investors need to make decisions predicated on their gut.

The obstacles that complicate the decision-making process for Bitcoin investors are plenty. The coin is definitely vunerable to the technical aspects of trading. The exponential upsurge in price is being driven by high demand and scarce product. Still, investors get a little antsy when the price increases too much, too fast. Then we see the typical correction that comes when an investment becomes over bought. The thing is these corrections are proving to be harsh, which tests the mettle of investors who aren’t used to such high levels of volatility.

Setting technical analysis aside, technology issues are also driving the marketplace today. There is no denying that the crypto-currency market has already established its issues. After proclaiming block-chain technology to function as securest method of disseminating information, there are holes that are being exposed daily. The bugs are certain to get worked out as this kind of technology seems destined for prime time. Unfortunately, Bitcoin has block-chain technology under a microscope right now.

No matter how secure any system may claim to be, hackers will definitely expose the weaknesses in a hurry. The crypto-currency industry has already been besieged by hackers, who have stolen billions of dollars in Bitcoin along with other crypto-coins. Losing profits to hackers tends to make investors just a little jittery. It also makes for plenty of litigation from those harmed by technology which could not yet be considered a secure as promised.

The Fundamental Hurdles

There’s an old adage: When school teachers and janitors start making millions from investing, prices are likely to crash because we are in need of school teachers and janitors. The truth is governments get nervous when its residents start losing profits or making lots of money without paying taxes. It’s no coincidence that India and South Korea are being among the most active countries on the crypto-currency exchanges, yet both governments are considering banning the trading of most cryptos. THE UNITED STATES, potentially the world’s biggest Bitcoin player, is working in Congress to decide how to regulate the crypto-currency market. They have already banned several exchanges for possible fraudulent activity. China is discussing an outright ban while Europe seems poised to check out America’s lead.

If Bitcoin or any other crypto-currency aspires to becoming an international currency for everyday payments, success will be predicated on the world’s biggest economies joining in the parade. Unfortunately, the major players (mentioned previously) seem to be moving in the other direction.

The biggest concern appears to be Bitcoin’s interest the criminal element. Proof has been presented that shows North Korea has been stealing Bitcoin to greatly help finance its nuclear program. ISIS routinely moves money among its affiliates via Bitcoin, doing so undetected until it’s too late. The drug trade is also enjoying the anonymity afforded them by block-chain technology. Progressively more Initial Coin Offerings (ICOs) are proving to be only common scams. These are all serious issues.
They are all fundamental conditions that should be favorably resolved if crypto-currencies are to survive and someday thrive.

Looking or Solutions

Generally, people are interested in all aspects of crypto-currency. Bitcoin has already shown the prospect of easily resolving payment issues between customers and vendors. However, trust is a big issue in the years ahead. If the anonymity feature may be the driving force behind the crypto-currency revolution, it will likely be hard to get governments to climb aboard and approve crypto-trading.

Let’s look at how South Korea made a decision to resolve the Bitcoin issue. The South Korean government recently passed a bill that provides six Korean banks authority to let its customer trade Bitcoin from their bank accounts. There’s only 1 stipulation: the account should be opened in the customer’s real name. Poof! There goes the anonymity feature. However, South Koreans can still trade Bitcoin by way of a Bitcoin Wallet as long as tax evasion isn’t the reason why they want to do so. It is a nice compromise, but its appeal could be limited.

Over the next few months, investors should start getting answers to numerous questions. Until that time, the pricing of Bitcoin along with other crypto-currencies will stay volatile. The price increase because of demand but will drop every time a new issue becomes news. Until prices stabilize, people should concentrate on one rule of investing. Never invest more money that you could afford to reduce. Indeed, Bitcoin is reaching its crossroads.

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