Is there A Future For Bitcoin Or Is It Going To Disappear?
Bitcoin along with other cryptocurrencies are on a bearish run again and this has started to gain attention from mainstream news outlets, most of which are very critical of the virtual currency.
Since its inception in 2009, the preeminent cryptocurrency has thrown a spanner in the works of traditional banking and financial institutions and has paved the way for the creation of a plethora of industry-shaping virtual currencies and blockchain-based innovations.
The prediction that Bitcoin will go to zero often comes up as a counterpunch to all the positive strides that cryptocurrencies are making.
What Have Critics Been Saying?
Many financial experts have gone on the record labeling Bitcoin to be a bubble and Ponzi scheme while speculating on how it would crash. The most telling example of this was JPMorgan CEO Jamie Dimon comparing Bitcoin to the Dutch Tulip Mania before predicting it would blow up. Perhaps more telling was the effect Dimon’s statements had on Bitcoin’s value, which fell after the American executive’s comments:
“It's worse than tulip bulbs. It won't end well. Someone is going to get killed. Currencies have legal support. It will blow up.”
The Guardian published an editorial in November 2017 that labeled Bitcoin’s price as a bubble, and pointed to the costs of mining, slammed the endorsements by celebrities and made strong statements about Bitcoin’s primary use as means to buy drugs and pay ransoms online.
Why Are The Critics Wrong?
While Bitcoin and cryptocurrencies are a financial and monetary phenomenon, they are also classed as a technological advancement, thanks to the underlying blockchain technology. This means that there is a whole wave of adoption that can take place across different sectors which can use blockchain and cryptocurrencies. The adoption that has happened recently has been seen at the top level in a few sectors, namely banks, major corporations and even governments.
In 2018 Bitcoin and cryptocurrencies are constantly making strides in adoption, utility, and community growth. Strong fundamentals and an equally strong history of growth tell me that the cryptocurrency fire is not yet quenched. Increased interest from institutional investors and declining prices can also brew up the best scenarios for long-term investors to add on to their positions.
Companies on the scale of Microsoft, Amazon, IBM, and Oracle are also racing to start providing customer-facing blockchain solutions, often tied to cryptocurrencies, in order to be the first to market with an effective and revolutionary product.
Bitcoin’s polarizing effect has people on both ends of the scale either proclaiming it is going to the moon or it is going to zero. The volatile, unprecedented, and revolutionary monetary system that is cryptocurrency has a future that not many can accurately predict, but as time has gone on, the idea that Bitcoin is going to zero seems more and more far-fetched.