Why Bitcoin can not beat your record?

Bitcoin has become known for its sharp fluctuations of prices soon after its creation. The ten-fold increase with subsequent collapse by 80 percent — quite a familiar scenario for those who have long been familiar with the coin. Peak Bitcoins were at the end of 2017, when the first cryptocurrency has reached the level of 20 thousand dollars. Of course, this was followed by a rapid decline. When the dust settled, I managed to get a Bitcoin bottom level 3122 of dollars.

After the dark days BTC has managed to get back to 10, and even 13 thousand. Today the coin is worth 8569 dollars. Many expect that very soon Bitcoin will return to its former historic highs. But there are always skeptics who believe fall to zero.

Let’s think about what exactly Bitcoin is now holding back and not allow him to return to 20 thousand. There are at least three reasons.

Slow adoption among institutional investors

In this direction there have been several confident steps: institutional financial institutions have launched futures contracts on the Bitcoin and other cryptocurrency derivatives. Many had hoped that the launch of the platform Bakkt will attract investors, but the actual effect is not followed.

Institutional investors are large holders of money. They can be investment funds, pension funds and insurance organizations.

There are at least two reasons why institutionally are reluctant to adopt Bitcoin. The first lies in the uncertainty that is fraught with investing in Bitcoin. While the coin has been working for almost eleven years, she and other cryptocurrencies are still nothing more than an experiment. Nobody knows what will be the fate of Bitcoin. It can go on the way once the first and most popular social network MySpace and sink into Oblivion for the sake of prosperity of new cryptocurrency projects. On the other hand, in theory, the whole cryptocurrency market could simply disappear, after which it will be written off as a failed experiment.

Source: Unsplash

Another problem that many companies see in Bitcoins is the difficulty of storage. Many traditional assets are insured or supported either by the government or other large institutions. These firms can be sure that their shares are unlikely to be hacked or stolen, but with the cryptocurrency situation is quite different.

The average user of cryptocurrencies to store their savings is sufficient to have a simple hardware wallet. However, a large institution that is in the millions of dollars pledged in cryptocurrency, we need a much more effective security measures.

Fortunately, this problem gradually decide: Bakkt opened a custodial service for all institutional investors.

The lack of technology

Now almost all hope falls on technologies second level, which would scale his network of Bitcoin. Technology second level — like the Lightning Network in Bitcoin — can make the transaction out of the chain, releasing pressure from the main blockchain cryptocurrencies. However, these technologies also could not be a universal panacea. Especially for almost half a year practically not heard about any progress.

Source: Bitcoinist

Without a suitable solution to scale many investors are clearly concerned about the future viability of Bitcoin. Also they will worry that if BTC ever compete with other payment networks like Visa.

The General sentiment regarding Bitcoin

Among other problems facing Bitcoin is the question of market sentiment. It seems simple enough hype to bring Bitcoin to the “former greatness”.

When in June of this year, Bitcoin came back to around 13800 USD cryptologist hoped that finally you can breathe, and “Kriptonika” has ended. But almost immediately, leading cryptocurrency fell into a downward spiral, as the bears continued to increase the pressure.

Source: 2Биткоина

When Bitcoin first reached 20 thousand, the hype around the cryptocurrency has broken all records. He seemed to have achieved mass adoption, and tons of investors from the technology sector were in a hurry to invest in major new phenomenon. The Bitcoin broadcast all the news channels, he got into numerous headings and crypto currency exchange every day recorded another record for the number of new registered users.

Some platforms even disabled the registration of new customers, which has created a small market accounts.

But today the fever on the stock market is not observed. And it seems the space is not anything that would be able to re-excite the imagination of potential investors. Will have to wait a little longer just in case in the industry there are significant changes that will provoke a new wave of investment.

Source: 2Биткоина

The result: while the current state of the cryptocurrency industry is obviously insufficient for new records. Should happen something special that will start the mechanism of the widespread hype, which is triggered at the end of 2017. What they will be is unknown.

What do you think that does not give Bitcoin once again to “shoot” and to overcome its past historic high? Share your thoughts in our cryptodata of hontarov.

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