Monday, December 5, 2022

Bitcoin is Tanking, but There’s Still Plenty of Faith

Bitcoin is Tanking, but There’s Still Plenty of Faith

Bitcoin is falling. At press time, the father of cryptocurrencies is trading for around $8,580 USD on Coinbase – the lowest it has been seen since last November — following several consecutive days of losses. And yet, commentators don’t seem that worried. Why?

Also read: South Korean Govt: “We Are Not Banning Cryptocurrency, Trading”

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The Common Sentiment: Growing Pains

Despite bitcoin’s massive losses over the last month, strain and anxiety hasn’t yet reached epic proportions.

It’s likely a sign that users are coming to terms with bitcoin’s volatility – that what’s occurring isn’t anything new, and traders have learned to accept losses as everyday occurrences.

Or, perhaps it’s a sign that bitcoin isn’t dead – and likely won’t be for a long time. A drop this hard can be a scary thing, but perhaps the hope behind bitcoin and its respective technology is strong enough to keep the momentum going, even when it seems like all is lost.

What the Analysts Have to Say…

One man, for example, says the current drop is a health thing. Financial analyst at AMSYS Group Imran Wasim explained that the rapid fall will probably persuade many users to put more money into the cryptocurrency, thereby boosting its price in the coming months. He predicts bitcoin could reach as high as $30,000 or even $35,000 by the end of the year.

“Next couple of years? $100,000,” he confidently stated. “It is going to happen because of its store of value.”

He’s not alone in his predictions. Other avid members of the financial sector claim that bitcoin is merely experiencing “growing pains” as the market matures, but that things will pick up eventually. Founder of cryptocurrency brokerage BitcoinBro, Oliver von Lansberg-Sadie, explained:

“I think the regulatory environment is one of a few factors contributing to this correction, which I see as a very healthy correction. It’s a sign of the market growing up, and it’s recognizing that cryptocurrencies are not a tool for money laundering or illicit use. I think it’s a step in the right direction.”

Is Regulation All That Bad?

And for all the alleged “threats” behind regulation, some of these moves stem from what seem to be good intentions. One lawmaker in Arizona, for example, is taking the opposite route to the rest of the world. He’s working on legislation that would make digital currency easier to use. Maybe politics aren’t as against bitcoin as we all thought…

State Senator Warren Petersen is attempting to pass two separate bills. One would allow residents to use cryptocurrency to pay their state taxes; the other is designed to protect it from capital gains.

Petersen said the attitude towards cryptocurrency amongst residents is one of pure acceptance, which ultimately prompted the move. He added that it’s also beneficial to the state, as regulators will now be allowed to use a more effective payment system through blockchain technology.

“It took a long time for the state to start using the Internet,” he says. “It took a long time for the state to start accepting payments online, so rather than us waiting ten or 15 years, I’m trying to get ahead of the game.”

People Still Love Their Crypto

On the production and user side, things are still expanding. Bitcoin miners are now looking to set up a new operation in the Shenango Valley, while a restaurant in Fayetteville, Arkansas is allowing customers to pay for their meals with digital currency.

Maybe there’s some truth to what Wasim and Lansberg-Sadie said – perhaps bitcoin is just going through a “teenage phase,” and will emerge at the end as the ultimate cryptocurrency for adults.

Will the bitcoin price beat the odds and come back stronger than ever? Post your comments below.

Images via Quartz, Pixabay

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