A few years ago, the idea of a digital currency overtaking the likes of gold and fiat currencies seemed impossible. Today, that notion is becoming more and more realistic with each passing day. And it's because Bitcoin has many advantages over gold and most fiat currencies. But, will Bitcoin recover? How high will the price of Bitcoin go?
I think the recent price drop is partially a result of people panicking
I think the recent price drop is partially a result of people panicking.
I'm not saying that's right, but it's true.
Bitcoin will recover, and I think it will recover soon.
This is why: I believe that bitcoin is the future, and there are two things that support my belief in this. First, look at how much money has been invested in cryptocurrency over the past few years. Second, look at how many people have already adopted it as their currency of choice.
The more people use bitcoin as their currency of choice, the more valuable it becomes—and vice versa. This leads me to believe that we are only beginning to see the full potential of this technology, and when we do, bitcoin will be worth much more than what it's worth now.
Governments are to blame for the recent increase in Bitcoin price
Governments are to blame for the recent increase in Bitcoin price.
The digital currency has seen a rebound in the last two weeks, and many are calling it a recovery. The price of bitcoin has risen more than 20% over the last two weeks, reaching a high of $6,350 on Monday and then falling slightly to around $6,200 by Tuesday morning. This is still far higher than where it was just over two weeks ago: In mid-December, BTC traded at around $3,800 per coin.
Some analysts say that the recent rise is likely due to the fact that governments around the world are considering regulatory changes that could affect cryptocurrencies. For example, some countries have begun implementing regulations related to ICOs (initial coin offerings), which involve blockchain startups raising funds from investors via an initial sale of tokens or coins.
In addition to regulations affecting ICOs, other government actions have also contributed to increased demand for bitcoin and other cryptocurrencies. For instance, some countries have banned or restricted their citizens from using crypto exchanges altogether; others have implemented stricter KYC (know-your-customer) policies for crypto transactions or have introduced fees for trading on certain exchanges.
The Bitcoin price drop is just a temporary setback
As you may have heard, the price of bitcoin has been dropping recently. And while it's true that this is a setback for the cryptocurrency, it's also important to remember that bitcoin is still one of the most powerful and innovative technologies in our world today.
In fact, some people think that the current price drop is just a temporary setback before we see an even bigger rise in value over the next few years. It's not just us who think so—there are many others who believe that bitcoin will recover from this setback and continue to grow as a currency.
So if you're worried about investing in bitcoin because its price has dropped recently, don't be! It's entirely possible that it will rise again soon enough.
At the end of the day, it doesn't matter what the Bitcoin price is
No, really. The value of the coin is important for those who are invested in it, but if you're just a casual observer or someone who wants to buy some Bitcoin to get in on this new craze, then you don't need to worry about the price.
Bitcoin is here to stay and will recover, no matter what happens to its current price. While there are certainly some concerns about Bitcoin's viability as a currency (and whether or not it will be regulated), there's no doubt that cryptocurrencies are here to stay.
The question isn't whether or not cryptocurrencies will survive—it's how they'll evolve over time and how they'll develop alongside other forms of digital currencies like Ethereum and Litecoin. But no matter where cryptocurrencies go from here, one thing is certain: they aren't going anywhere anytime soon!
Focus on the long-term value of Bitcoin, not short-term drops or spikes in price
- Bitcoin is a new and extremely volatile asset class.
- This lack of liquidity causes large price fluctuations.
- The long-term value of bitcoin is determined by the scarcity and utility of the asset.
- Bitcoin can be used to solve many problems in all types of financial systems, including remittances, cross-border payments, escrow, charitable donations and more.
- Bitcoin has a fixed supply of 21 million coins, which means its price will increase over time as demand increases.
- While it can be difficult to see past short-term price swings, bitcoin has great potential as a store value.
Bitcoin will recover from market crashes.
You shouldn't panic if you're invested in Bitcoin
Bitcoin has been through these ups and downs before, and it's always come out stronger. The best way to think about this is to look at the big picture: bitcoin is still a revolutionary technology that will change how we pay for things, whether we want it to or not. And if you believe that, then you should also believe that bitcoin will recover from its current dip as well.
So what if it doesn't recover? Well, if you're only interested in making money then maybe it's time to cut your losses and move on. But if you're interested in helping shape the future of finance and payments—and who isn't these days?—then hold on tight! You have an opportunity here to be part of something powerful and world-changing.
Conclusion
It seems that we are at a point in time where money issues and speculation will be with us for quite some time. This is not to say that the hype is not justified or that cryptocurrencies will not change the way we perceive money and our financial world; rather, it is to say that there is still a lot of work to be done before true mainstream adoption will occur. Remember, even if bitcoin and crypto never recover at all, blockchain technology—which started with bitcoin—has already proven useful beyond any doubt, especially in the realm of money transfer and security.