Bitcoin Uncertainties to Hit Further

[dalaganicole]

Uncertainties in the Bitcoin space will continue to hit the market as the value of yearly transactions of the cryptocurrency is seen to slide further in the remaining months of this year, a new study showed.

In its study, The Future of Cryptocurrency: Bitcoin & Altcoin Trends & Challenges 2018-2023, Juniper Research said Bitcoin has failed to recover after seeing its value to fall sharply from its peak in December last year despite the weakness of many major fiat currencies.  It added this failure to regain from its all-time high underscores the volatility of the space with regard to on-going trade disputes between the US, China, and the EU.

Dr. Windsor Holden, the author of the report, commented:

“Bitcoin has no intrinsic value. Like any asset, it is worth whatever someone is prepared to pay for it, but it has no meaning or existence beyond the confines of the ledger. It is a bubble, and there is a strong possibility that this bubble could burst in the near future.”

According to the researchers, if Bitcoin is not able to take advantage of the favorable circumstances surrounding the space, then it would face more headwinds moving forward when the trade issues are finally resolved.

It noted that cryptocurrency transaction volume fell to 230,000 daily in September 2018 from 360,000 per day in late 2017. Daily transaction values also declined from more than $3.7 billion at its peak to an average of $670 million during the same period.

Adding to the uncertainties are the regulatory restrictions imposed by state and national governments, with some even initiating criminal investigations into digital currency exchanges. The study added that advertising bans introduced by social media giants, including Twitter, Google and Facebook have drastically affected the reach and visibility of the cryptocurrency space.

These restrictions and ad bans have reduced access by casual investors to buy Bitcoin and other cryptocurrencies, coupled with the decision by credit card companies to prevent purchases using credit lines.

The study also paints a grim future for Bitcoin in the long-term, citing both the increasing regulatory scrutiny and the rationale behind the currency’s valuation.

However, this finding does not agree with the projection by hedge fund manager Spencer Bogart who believed Bitcoin has bottomed out and the bearish trend is soon going on a reverse. Bogart, a partner at Blockchain Capital, told CNBC’s “Fast Money” Bitcoin could reach $10,000 by the end of this year.
Read more: https://cryptovest.com/news/bitcoin-uncertainties-to-hit-further/