Bitcoin price (BTC) plunged to new yearly low on Sunday, but some cryptocurrency experts are backing its potential to work as a medium of exchange and a store of value. The expert claims the downside movement in the crypto market is due to the selling pressure from traders who bought bitcoin last year.
Source:coinmarketcap.com
Bitcoin price plunged from $6500 to $3500 in the past two weeks alone. Besides the latest slump, BTC has been under pressure since the start of this year. The largest coin is down almost 80% from its all-time high that it achieved at the beginning of the year.
Will Bitcoin Go Up Again?
Bitcoin Has Huge Store of Value
Lou Kerner, the cryptocurrency expert from CryptoOracle, predicts bitcoin to replace gold in the days to come.
Commenting on the latest crash, he said: “Nobody likes being down like this, but this is part of what investing in crypto is all about.”
“Is it just that they’re inexperienced investors who are getting nervous,” he added.
He says the cryptocurrency market is new and there are several governance issues – which are creating hurdles for the virtual currencies to evolve. The crypto market is all about trader’s confidence and expectations; sometimes people get depressed while other time they cheerup market reports.
“If you believe in the long-term and if you hold on for dear life, because of the volatility, over any two year period, these people have always been rewarded,” Lou Kerner said.
Lou Kerner believes market regulators should play their role in streamlining the emerging market. He wants regulators to crack down money laundering, terror financing, and other illegal activities in the crypto market to enhance investors confidence.
Bitcoin (BTC) Price Today – BTC / USD
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Echoing Lou Kerner comments, Dr. Saifedean Ammous expects bitcoin technology to re-establish the Gold Standard, which he thinks was liable for “the most transformative and innovative period in human history since the late 18th century and early 19th century“.
He is of the opinion that the world has by no means flourished and thrived in the same way as compared to it operated under “Golden period of capitalism.” Thus, Dr. Saifedean Ammous thinks bitcoin would lead us to return to “the old, unadulterated version of capitalism.”
What is Happening in the Market?
Lou Kerner is undoubtedly right that the cryptocurrency market is moving on speculations and traders’ expectations. However, it’s also true that bitcoin and the rest of the crypto market fail to work as a real medium of exchange and store of value. The huge amount of price volatility is making it difficult for retailers and other businesses to accept these crypto coins as a viable medium of exchange.
The cryptocurrency market, on the other hand, has also remained unsuccessful in attracting huge investments from prominent Wall Street investors and hedge fund managers. The regulators’ role, institutional investment and Bitcoin ETF’s are the most significant catalysts for future price appreciation of crypto coins.
