For some, Bitcoin has been a bubble that is waiting to pop right from the start, but it seems as though that the bubble continues to defy the pessimists’ expectations since it just crossed the $10K last November 28.
Being almost irrelevant when it started as a currency back in 2009 and regularly brushed off as another scam that will be used by the malicious to siphoned money from the law abiding citizens, Bitcoin has come a long way if you look at how lucrative owning Bitcoin has become.
Positive Movements Indicating a Positive Future
There are a couple of good news when it comes to the future outlook of Bitcoin if you are to interpret the movement of big entities moving into Bitcoin as explained by Riccardo Spagni, a leading developer of privacy cryptocurrency Monero. The current surge in the price of bitcoin is primarily fuelled by money coming in from institutions. He mentions that there are already 120 hedge funds that are focused on bitcoin and other cryptocurrencies. And that bitcoin has proved to be stable despite the unprecented pool of investors coming in.
Spagni explains that this phenomenon can only be explained that these businesses already believe that the cryptocurrency bitcoin will at least stay on for at least 10 to 20 years.
A Global Validation
If you ask Patrick McCorry a PhD candidate for the University College London and a leading cryptocurrency researcher the mere fact that the value of Bitcoin reached at least the $10k threshold proves that bitcoin is now accepted as an International currency. This is a complete 180 to at least 5 years ago when bitcoin was still at its infancy stage and was not generally accepted as a concept.
The growth of bitcoin is well and good however he is concerned that it may result to a loss of money when the bubble pops because the price drive is due more to people wanting to make a quick return rather than the actual use for the cryptocurrency.