Cryptocurrency Analyst Thinks Bitcoin Depends on People Believing in its Future to Succeed
Bitcoin (BTC) is the largest and most valuable virtual currency in the market. Although 2018 was not a perfect year for BTC, it remains the most important coin in the space. According to Elizabeth Schulze, CNBC technology correspondent said that Bitcoin’s future depends on people believing in the famous cryptocurrency.
During the last weeks, Bitcoin plummetted to new lows in years. This is clearly something that several investors could not stand. Indeed, some of them took the decision to sell their funds. However, this was not enough to shake the strongest hands in the market.
Bitcoin’s survival will depend on users that believe in the future of this virtual currency and how it will behave in the market.
On the matter, Schulze explained during a CNBC segment:
“Bitcoin’s success ultimately hinges on its customers – its buyers believing in it, it’s not something backed. There’s no authority that is going to come in and say ‘we’re going to buy Bitcoin if nobody else does’ so there really is a belief in this system.”
Since Bitcoin was created – or at least during most of the time since it is operating on the market – Bitcoin’s price fluctuated because there were speculators behind Bitcoin. Other assets depend on different factors that Bitcoin does not have such as revenue streams, assets or liabilities.
With blockchain technology and cryptocurrencies, there is a new technology that is powering a set of new applications. At the same time, Bitcoin has the potential to compete with the fiat currency system. This is why there is a slight possibility for Bitcoin to increase in value several times more.
In order for Bitcoin to success, people would have to believe in it as a form of payment, store of value or as a new asset class. Schulze went on saying that there’s enough early investors in the market and Bitcoin did not go to zero. Nevertheless, she mentioned that not everyone is trying to enter the market, making reference to some investors and hedge funds.
There are several companies that are starting to work in order to offer institutional-grade services related to Bitcoin. Goldman Sachs, Fidelity Investments and the Intercontinental Exchange (ICE) are all working on their own institutional services to welcome new invesors.
During this year, Bitcoin lost around 80% of its value. Bitcoin is currently being traded $600 dollars above its lowest price in a year, which is very positive taking into account that in the last 2 weeks the crypto market lost around 40% of its value.
At the time of writing, Bitcoin is being traded close to $4100 dollars and it has a market capitalization of $72.78 billion dollars.