Bitcoin Doomed To Fail, New Study Reveals
A new study now claims that bitcoin will never experience a breakthrough.
Why Bitcoin’s Bubble Is About To Burst
According to a study conducted by Juniper Research, bitcoin’s long-term growth might not be realized due to some factors. Top on the inhibiting factors is the regulations issue that has remained debatable.
Per Windsor Holden, one of the researchers in the report, the unavailability of worthiness in bitcoin is a clear indication of a negative future. He said bitcoin’s future is similar to other cryptocurrencies. In his own words, the cryptos have no a clear meaning outside the blockchain. He likened the situation to a bubble that is about to burst in the coming days.
The report cited the drop in daily transactions and volume in bitcoin as a major indicator for the doomed future. This comes after bitcoin witnessed highs towards the end of 2017. Around September 2017, daily volumes in bitcoin stood at around 360,000, compared to the same time this year, the figures have dropped to 230,000. For daily transactions, late last year, bitcoin witnessed trade standing at $3.7 billion. Come 2018, the figure is a contrast with September figures standing at $670 million.
The researchers pointed out that bitcoin’s value dropped at the same time top fiat currencies were being devalued due to different factors that affected the entire global economy. The economy was affected by wrangles between the US and China while at the same time the Brexit debate has contributed to a drop in major global currencies.
The pointed out that the conditions were perfect for bitcoin to take advantage and stamp a foot in the market. The researchers said that once these factors have been resolved, it will be hard for bitcoin to prosper.
Major Hindrances Behind Bitcoin Slowed Adoption
A number of factors have been cited as the main hindrance holding bitcoin’s potential to break out. The report stated that strict regulations in some jurisdictions are to blame for the slowed adoption. Advertising bans imposed by leading tech firms like Google are believed to play a major role in the stagnated adoption of bitcoin. However, Google recently lifted part of the ban.
Elsewhere the nature of investors has also been cited as contributing factors behind bitcoin’s slowed uptake. Casual investors participation in cryptos has been limited after top banking sector players imposed bans in converting bitcoin to fiat through their platforms.
Despite such reports, not all players believe is headed for doom. Recently, Tim Draper once again predicted that bitcoin will hit $250,000 by 2022.