Bitcoin is likely to go one of two directions from here.
After we saw bitcoin hit an all time high right near $20k per coin, we have since seen the coin trade as low as $10k per coin, and currently it trades around $13k per coin.
This is a defining moment for bitcoin.
Up until now it has mostly been owned by the "bitcoin believers", those that think (or hope) that some day bitcoin will change the way we use money.
Moving away from money that is backed by central banks/governments to money that is owned by the people.
These investors were buyers of bitcoin back in 2013 and have been holding just about ever since.
However, just recently we have seen a different kind of investor base show up. One that is chasing performance.
These new investors can mostly be labeled as speculators, and most of them are of the retail kind, with only a handful of institutions sprinkled in.
If there really are significant amounts of institutional capital that is interested in bitcoin, now is the time they will start to put that money to work.
They have likely been waiting for a correction of 40-50% to finally enter the space, and they finally have gotten one.
If that is the case, the recent pullback will likely be short lived and we will see new all time highs yet again in early 2018.
However, if institutions never show up, then this price decline in bitcoin is not likely to be over any time soon. It will likely continue to trend lower and lower as the late coming retail decides to run for the exists at exactly the wrong time after buying at exactly the wrong time.
Not to mention that this also seems to be a critical point in terms of regulations.
Exchanges are getting new and stricter regulations, while governments are weighing in every week with their thoughts on bitcoin and cryptocurrency and how they can better regulate or outright ban them.
For the reasons mentioned above, this coming year looks to be very pivotal for the price of bitcoin and the entire cryptocurrency market in general.
It could mark the point where the cryptocurrency bubble ultimately popped, or it could mark the point where a new asset class reached mainstream and garnered mass adoption by investors and speculators alike.
I'm hoping and betting on the latter.
Time will tell.
Stay informed my friends, and enjoy the holiday!
Image Sources:
https://www.digitaldealer.com/at-the-crossroads-of-culture-and-service-efficiency/
http://impactalpha.com/read-this-if-you-are-not-a-zillionaire-impact-investing-for-the-rest-of-us/
https://nodamselindistresshere.wordpress.com/2015/08/06/crossroads/
Follow me: @thecandal
Source: https://steemit.com/bitcoin/@jrcornel/bitcoin-s-price-is-at-critical-crossroads
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We believe that people will also use Bitcoin more like a store of wealth, or an appreciating asset. Think gold. People seem to be hoarding it rather than use it as an actual currency as we know that there are faster and cheaper cryptocurrencies for payments, and exchanging value.
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