One Year After The All-Time High
It’s one year following the peak of Bitcoin. What has changed since the all-time high and why the odds are good that the loss is a cleansing thunderstorm.
About a year ago, the Bitcoin price reached its all-time high of around $ 20,000 -. A value from which the cryptocurrency is now miles away $ 3,766, or around 73 percent, at the time of this post. Whether or not we will ever see courses like the end of 2017. It’s as uncertain as the answer to the question of whether cryptocurrencies have any future as a speculative object.
The price imagination knew no borders upwards around a year ago. Even financial experts predicted courses of up to 100,000 US dollar.
What has often been forgotten is that courses have a lot to do with faith apart from the actual intrinsic value of a thing and that is inherently low in a virtual currency. There is an opportunity assessment of how others assess their value.
The bigger the idea and vision and the lower the actual value, the deeper the case may be when the mood tips. But even then there is an overreaction in all cases. In other words, the market exaggerated the tulip bulbs in the famous historical example. And in 2001 it exaggerated its technology shares.
Bitcoin Regulators Are Important
How much to save depends on the seriousness with which you look after a sedate market, a sober evaluation.
Ironically, it is precisely the banks and regulators that can help by developing the regulatory arrangements and rules by which a trade takes place.
So those instances that are behind the central bank currencies, to which the virtual currencies are supposed to be an alternative.
Judgments according to which Bitcoin is not a regulated currency instrument are correct, but not helpful. Because then, if there are no rules, thanks to black sheeps trust is lost.
In the past, there have been too many black sheep in the ICO area in particular. Those who have already been unmasked as such and those whose promise-based businesses are still running.
It is bitter for all those who despite honorable approaches and sound concepts can’t get rid of their token in much the same way as in 2002. Then even reasonable business models could not go public, because the mood on the floor did not give it up any more.
And it is also important for the trade that we have internationally reliable and trustworthy rules for dealing with cryptocurrencies. For, unlike other goods, it is enough to have individual trading places that are not reliable enough to discredit the entire business, as the problems with some Asian stock exchanges have shown.
Once trust is restored, timing sooner or later also comes up. If there are already some tangible applications on the corporate side, especially in the ethereum or iota environment, this could generally be good for cryptocurrencies.
Industrie 4.0 systems, which charge, for example, for data-driven services with other machines, autonomous vehicles and assistance services, which also autonomously settle their services with third parties, and so on.
What will remain in any case is the blockchain as an idea but this can also be used in general business, which is only about the secure commitment of conditions, business transactions and their billing modalities.
What this looks like is what we see in Chile, where numerous instances in the electricity sector so settle. And we see it in the insurance industry, in the pharmaceutical trade and in many other environments.
Bitcoin More Than Just A Speculative Asset
However, what 2017 and 2018 have brought are more investors holding bitcoins and, fortunately, still invested.
35 million, according to a study by Cambridge University, twice as many as a year before. That some of them have jumped off now is no issue. More importantly, those who invest in Bitcoin, Ripple and Iota understand what they are doing.
One thing is certain, something will remain of the world of ideas around Bitcoin and Blockchain. Simply too many companies are working on applications and implementations. While it may be that Bitcoin’s B2C orientation will be lost, that’s no harm, because the vision behind it is more than just a speculative object.