Bitcoin The unofficial king of cryptocurrency. It reached dazzling heights in value back in December 2017. For that reason alone, there was a mass rush of investors who knew nothing about cryptocurrency and wanted to invest in this virtual money that was giving people unhear of returns. What further increased interest was that due to incomplete knowledge about cryptocurrency, people thought that by investing in it, they could get away with dealing of the black market as it was supposed to keep their identity a secret.
In the words of the legend Bob Dylan, ‘times they are a changin..’ The new blood of decentralization were to first to abandon ship after experiencing the ever volatile nature of Bitcoin.
Then you better start swimmin’
It was a time of great joy for long time investors as their patience paid them a thousand fold. They earned massive profits when they sold their long held Bitcoin at their peak value and when the slump came, they bought Bitcoin again. Now they are braced for the next eventual value high (whenever it may come). HODLers (Hold On to Dear Life) are the backbone of the online Bitcoin community. They have always managed to ensure that when the going gets tough, they rally the community around and remind themselves that when no one know of Bitcoin, it was them that invested in this decentralized currency.
With additional taxation and scrutiny that is currently focused on Bitcoin and other cryptocurrencies, it is only logical that one keeps a check on their track records as far as their dealings are concerned. As cryptos become more and more mainstream, one eventually begins to envision a future that is completely decentralized. This is the crucial part when things tend to go wrong.
Also Read: 9 Interesting Facts About Bitcoin
Or you’ll sink like a stone
There are few reasons that can be used to understand the reason behind Bitcoin’s fall. Like all commodities, it is merely a game of demand and supply.
- When the demand for Bitcoin and other cryptocurrencies increased in December ‘17, there were few who were willing to mine it and hence prefered to purchase it through crypto exchanges. This increase in demand was not met by newly mined Bitcoin. Instead, cryptos that were already in circulation that were being sold off by the Hodler gang were bought. A cycle that satisfied the balance of demand and supply within itself. This lead to the eventual fall in the prices of Bitcoin and other cryptos.
- Now, as time has moved on, and those flash in the pan investors have long abandoned their ships, there is a new threat on the horizon. Taxes! Death and taxes are the only 2 things that are certain in life. For which, taxation in regards to cryptocurrency is a reality in many nations. With the US government now focusing attention towards this decentralized currency, it shall be a tough year ahead. With more regulations imposed on cryptos, either they shall sore and become more accessible to all or they shall crash and burn taking along with them the entire decentralized economy.
For The times They Are A Changin’
The value of transaction fees is increasing. With the eventual rise in the value of Bitcoin the transaction towards it becoming mainstream shall become faster. But it does so, there shall be a trial by fire that Bitcoin needs to win. Blockchain technology, the bases on which this entire ecosystem is created has just started finding its feet. With inflation on the prices of commodities continues to rise with fiat currency, people will need a safe haven for their money. Bitcoin and other cryptocurrencies will be the answer.