Bitcoin is one of those things that uncertainty revolves around. While Bitcoin has become an increasingly popular option as a payment platform, there are those who still speculate that Bitcoin is on its way to the pile of other discarded fads. On the other hand, there are those that still rally for the crypto currency, citing current economic data as the premise of their argument for Bitcoins success. Below is an analysis of what market indicators show promise for Bitcoin and which point to eventual failure.
One particular market indicator that shows that the crypto currency still has a bright future is the market itself. After trading at a one-week in the previous week, Bitcoin is back up to $350. Trading for Bitcoin has tended to remain in the same value area.
While $350 for Bitcoin does show promise, the Bitcoin price index says otherwise. The price index indicates that the average price of Bitcoin worldwide has decreased 97%, which is certainly not a modest figure. The record high for Bitcoin was $1,242 in 2013. Therefore, it isn’t terribly unclear why current market forecasters are uncertain regarding the success of Bitcoin.
Integrating Bitcoin into the Economy
It seems that the days of traditional currency exchanges are coming to an end. Despite Bitcoin’s low trading value relative to its past value, popular vendors are more willing to integrate Bitcoin into their payment systems. For instance, PayPal recently announced partnerships with certain merchants that will allow the company to accept payments from Bitcoin using customers. While there is uncertainty about just how the Bitcoin-PayPal integration is going to work, there are ongoing discussions about the details. An integration between PayPal and Bitcoin is likely to expand the currency’s use on a global scale, leading to stronger trading values and success on the market.
The Anti-Bitcoin Sentiment
While there are a few positive indications that Bitcoin may truly become a currency of the future, there is still an anti-Bitcoin sentiment that is alive and well among market analysts. One prominent investor, Matt Phillips declared that Bitcoin was the “worst thing to invest in” in 2014. His sentiment is that Bitcoin is ultimately doomed because it isn’t really a currency, but a form of payment that most retail chains and consumers will want to accept. One of the few ways that Bitcoin will be able to survive, according to Phillips, is through government backing and the market actually taking the “plaything” seriously.
Looking at Bitcoin’s performance the market, its integration into well-known retail systems, and the strong anti-Bitcoin sentiment, it seems that the results are mixed. True success for Bitcoin really depends upon its ability to attain more widespread acceptance within the market and upon acceptance by government and investors. While Bitcoin trading is still strong, it is nothing compared to the high the crypto-currency exhibited a few years ago and it is unlikely that it will reach such levels. Trading was high for Bitcoin in 2013 because it was seen as a new fad and only the future will say whether the fad is going to be a true form of payment.
Alex Richardson is a Harvard graduate and a marketing and technology expert working with WebHawks Inc. He is based in California, from where he writes to share his thoughts on technology and business development across different marketing fraternities. Catch up with him on LinkedIn for more updates and well researched articles.