April 18th, 2018
The recent fluctuation in digital currency prices has resuscitated the question of cryptocurrencies functioning as a store of value. Bitcoin saw a rise of around $20,000 and fell down to around $6,000 before rising again. Now the price of Bitcoin is hovering somewhere around the $9,000 region. The cryptocurrency price trend has been rising, falling, rising again and so on for quite a long time. Digital currencies are known to be volatile and this has been proven every time with these price trends. The recent price dip gave reasons to anti-crypto campaigners to criticize the technology.
Experts from around the world are claiming that wild fluctuations in the value of digital currencies can make it tough for businesses. With such uncertainty over the rise and fall of Bitcoin’s price, it can become difficult for investors to trust these digital currencies. There have been all forms of criticism and negative feedback from many experts and investors time and time again. Some have even started expecting that this digital currency market will end badly. The recent dip in the price of digital currencies has led many to predict a rather bleak future of digital currencies.
However, one dilemma that is being seen by many, is that they are categorically condemning the idea of digital currency, but on the flip side showing a deeper interest for the underlying blockchain technology. At this point, one common question among people from around the world is, “will blockchain and digital currencies exist as separate entities or will blockchain technology exist even if Bitcoin fails?”
Many experts are coming up with a technical analysis to explain the current scenario. The recent pullback came only after Bitcoin’s price reached peak point. Some are claiming that Bitcoin always has this trend of breaking it previous records and following up with a dip. The recent rise and fall is a trend, nothing to give much thought to. This recent pullback is unprecedented and it scared many investors around the world. For the ones who are familiar with the history of Bitcoin, they know that it should not be something to be surprised about at all.
Consideration of digital currencies and the blockchain in most possible cases should be seen as neutral. It is not based on ideology, but simply on legal reasons. In many fields, blockchain technology has the ability to be used apart from a mere payment system. This new technology will help in achieving better transparency and efficiency; it has nothing to do with cryptocurrencies. Experts from around the world are praising the potential of the blockchain. Governments in many places are also exploring all possible means to use Blockchain technology for ushering in a new digital economy.
Already, there have been many opportunities with blockchain technology, businesses from around the world have started to realize the importance and possibilities of this system. Different sectors are expected to get various benefits from this new technology. Blockchain technologies will be useful for all financial institutions around the globe, government bodies to maintain data safely, medical fields, and various other sectors.
Millions of people believe both Bitcoin and Blockchain are synonymous, but it’s not the case. Bitcoin is a digital currency system which is based on blockchain technology. Blockchain technology is already being implemented in many places and in the next decade, we will be able to see more of its use. Over the years, the interest has shifted from digital currencies to this new blockchain technology, which clearly shows the technology will have a bigger role to play in the future.