The recent decline in Bitcoin’s value made a lot of noise and convinced the general public that Bitcoin is dead. Even if you didn’t catch the most recent news, you’ve probably read about Bitcoin’s ups and downs in the past. Bitcoin’s market is highly volatile, making it the most capitalised virtual currency as well as the most untrustworthy store of value.
After months of volatile price fluctuations, the crypto has turned green again, with Bitcoin (BTC) leading the recovery effort by indicating signs of stabilising above the critical $30,000 price barrier. Interestingly, despite the current bearish market environment, Bitcoin has been declared “dead” more than a dozen times in the first half of 2022. But what does it all mean? Keep reading to find out.
It Had Happened Before
With the slow and rapid decline of Bitcoin’s price, many investors and crypto traders are looking online for answers, with many directly asking the search engine if “bitcoin is dead.” According to CoinTelegraph, Google searches for the term “bitcoin dead” reached an all-time high over the weekend, accomplishing a score of 100 between June 12 and June 18, 2022.
In comparison, the last time the key phrase “bitcoin dead” reached a score of 100 was in December 2017. These panic-stricken searches by traders and investors reflect the utter and total uncertainty that has engulfed the cryptocurrency market, which was unquestionably provoked by several factors such as Federal Reserve interest rate announcements, the collapse of Terra, and the war in Ukraine.
It’s Not Quite Dead
Crypto is clearly not dead yet. However, the people featured in Coinbase’s recent commercial, which are the ones who have been tweeting about crypto’s impending demise, have a decade of evidence to back them up. And things aren’t looking good right now. Digital currencies are being scrutinised because some retail investors have been completely deceived into investing their life savings in what is still an unregulated, speculative financial asset.
Furthermore, lawmakers in the United States are looking more closely at cryptocurrency, and while it’s unclear how or when regulations will be implemented in the United States, the possibility appears to be more real in Europe.
Recently, European Central Bank President Christine Lagarde stated on Dutch broadcast tv that cryptocurrency should be regulated. “My very humble assessment is that it is worth nothing, that it is based on nothing, and that there is no underlying asset to act as a safety anchor,” she stated.
There Are 2 Types Of Investors, And One Is Losing Big Time
Although it is true that “the markets make money from active traders and give it to the patient,” those who purchased Bitcoin recently are the main sellers. How do we know this? Bitcoin is based on a public blockchain, which provides complete transparency, which is the aspect that’s lacking in traditional finance. People who have been involved in the cryptocurrency market for a long time are holding on to their coins and purchasing more. However, trying to get rich quickly with Bitcoin is a disaster waiting to happen, and true wealth is built by being patient with an investment over time. However, crypto platforms are utilised to enhance your learning by providing adequate tools and expert support while trading to avoid potential disasters, and one of the trusted platforms in the market is Bitcoin Motion.
Furthermore, you can declare Bitcoin dead and sit in a melting ice cube of dollars, or you can risk investing a small amount in new technologies and supporting society in growing and prospering. Short-term investors are losing money in the Bitcoin market, while long-term investors are smiling and continuing to invest for the long term. So, don’t listen to influencers who have never worked in finance and encourage savings accounts that lag behind inflation.
What’s Next For Blockchain?
Bitcoin’s price has risen dramatically since its early beginnings in 2009. One Bitcoin is now worth more than $16,000, but the currency’s true value remains insignificant. As the price of Bitcoin rises, the ups and downs will be more dramatic and difficult to predict. From the start, the most capitalised virtual currency has had several significant flaws in the design, preventing Bitcoin from becoming real money.
Due to its great volatility, Bitcoin is unlikely to be considered a sustainable and stable store of value. Today, the cryptocurrency’s price will likely fluctuate by more than 20% in a single day. One must invest with a clear mind that nothing is certain. This is the reason why most trading platforms offer demo trading for its new subscribers. To learn if the above mentioned platform Bitcoin Motion offers demo trading, read more about the software. The primary – and almost sole – real-world implementation of Bitcoin is a low-cost approach to transferring value over long distances. However, most buyers do not acquire Bitcoin to use it in traditional monetary transactions. With that in mind, the current demand for Bitcoin is mostly purely fictional, and the price could plummet at any time.
However, we cannot be certain that crypto as a concept is dead, but you can still profit from alternative cryptos, also known as altcoins. The majority of altcoins, such as Litecoin and Ethereum, are built on the same technology as Bitcoin. Despite being developed differently than Bitcoin, these altcoins are far more secure, long-lasting, and as dependable as virtual money. For example, adding a new block to the blockchain in Litecoin takes significantly less time. Furthermore, with Ethereum, you can easily create secure contracts that will hold the money until a specific goal or date is met.
Where do we go from here? It’s easy to disregard blockchain technology and ideology while watching crypto’s day-to-day volatility and projects like Terra and Luna enter a “death spiral.” However, crypto enthusiasts claim that, despite its flaws, crypto is not going away. For one thing, cryptocurrency must address its branding issue, as the term crypto can be quite misleading. 99% of cryptocurrencies are not attempting to be currencies; rather, they are attempting to be investment assets behind these blockchain networks, and it is only a matter of time before all companies and businesses integrate blockchain in some way.
The near implementation of regulations is becoming more popular, particularly following the collapse of TerraUSD and its sister coin, Luna. Many supporters favour increased supervision and control, partly because it may help cryptos gain widespread recognition. It was estimated that there are currently over 300 million crypto users, and that number is doubling every year — nearly twice the historical rate of internet adoption. Overall, even though the viewpoint toward crypto is very negative at the moment and everything appears to be doom and gloom, the fundamentals of cryptocurrency haven’t changed.