Aside from the longstanding conflicts in the Bitcoin community and the recent upsurge in the capital outflow to other cryptocurrencies, do you think $2000 seems a sure range that could have been reached by now?
Bitcoin’s eventful life
The price had almost closed in on $1,300 before the March 25 struggle over the scalability issue which dropped the price to $908. This is quite understandable as a factor to cause panic in the market and hinder the flow of interest.
The price regained its strength in the most part of April when the “altcoin bubble” was somewhat used frequently.
Now, even when some of the suggested factors that are likely to affect the price in May are yet to come, the price hovers around $1,450. The French election, India’s decision on digital currencies, a review of the ETF decision by the SEC and we are not even sure of when the standoff between some banks and digital currency exchanges would end. Three major exchanges Bitfinex, OKCoin and BTC-e have separately reported that they’ve been unable to process transactions in dollars. None of these is certain to change anything in the price.
The bar is set
What is clear is that Bitcoin isn’t getting any cheaper. The side view it’s been getting from a section of the market, particularly mainstream investors is gradually turning into a full glare.
Probably this is because they are getting to realize that there is no other technology like it or because some of them have tried and had seen that it is really worth it.
With a meager $21 bln total market cap - or thereabout, the market potential for the digital currency which has been seen as the main backbone for others tends to be unveiling its huge opportunities. More digital currency-linked innovation are introduced day by day by shrewd minds who are bent on making its relevance known to our existence. It is paying off though.
Gradually, its market is setting off to rise from the $20 bln cap for the next $20 bln where it would likely get more serious investors involved. Yet, it is still appropriate to say that a lot of those who can afford a full unit of Bitcoin at its current rate are still not into it.
On the other hand, not all of the several people in developing countries who are getting introduced to it can afford to claim one. The interest Bitcoin has generated so far - the new all-time high set and the price rise over an ounce of gold - in the mainstream media is a catalyst that would bridge some of the gaps in due time.