Has the Momentum of Bitcoin Come to a Halt in the Short-Term?
Is the last trace of last year’s bitcoin bull run coming to an end? This is the question many are asking themselves as the top cryptocurrency took another acute fall following South Korea’s announcement that it was banning anonymous trades.
South Korea … Again
News of South Korea’s bitcoin dealings have emerged over the last several weeks. First, it was banning exchanges. Then, it wasn’t – the drama never seems to end. In the middle of all the hullabaloo is cryptocurrencies in general, and the wild price swings they incur whenever nations (predominantly those in Asia) get it into their heads to do something drastic.
Bitcoin has dropped by approximately $4,000 USD in just the last week, and by almost half since its recorded high of $19,800 in late 2017. As we enter the new year, bitcoin’s price is not at its finest point, and many are concerned about what 2018 will hold. If things could drop so rapidly this early on, what do the next 11 months have in store?
Regulators Need to Lighten Up
While strong, the threats of regulation and interference don’t simply lie overseas. Bitcoin’s price has certainly suffered from what feels like on-going, impending action from financial authorities in the U.S. and North America, though nothing big has happened yet.
Portfolio manager Steve Chiavarone believes any attempts at monitoring bitcoin activity at a federal level could destroy the opportunity to study blockchain technology further. He believes that without openness and regulatory acceptance, cryptocurrencies could become null and void very quickly.
Blockchain … It’s a Good Thing
Speaking with CNBC, Chiavarone said, “If the first version of the Internet was an Internet of information, blockchain is an Internet of value. It allows for the digital transfer of files in a way that’s verifiable. It digitizes trust.”
He went on to say that in the long run, bitcoin’s technology has far more to offer than the actual coin:
“The currency itself isn’t a great medium of exchange. It’s not a great store of value. It has a fixed amount, so the Fed would have to kill it at some point because they wouldn’t be able to engage in monetary policy. They can’t increase or decrease the supply, but the blockchain behind it, we think, is more real than people are giving it credit.”
Bitcoin Stays Steady, Other Cryptos Rise
On the plus side, it appears bitcoin’s slide southward isn’t uniformly affecting general crypto-territory. Ripple’s value, for example, has risen by approximately $8 billion in less than 24-hours at press time. XRP is now trading 18 percent higher than its Monday low of $1.16 according to CoinMarketCap.com.
Discussing its recent partnership with Ripple, financial transfer platform MoneyGram stated, “XRP remains the most efficient digital asset for payments with transaction fees at just fractions of a penny compared to bitcoin fees of about $30 per transaction.”
Can bitcoin pick up the pace, or is it stuck at a low point for while other cryptocurrencies steal the limelight? Post your comments below.
Images via Steemit, Pixabay