Bitcoin set for massive recovery this year
Bitcoin is due for a substantial recovery this year after a disappointing first quarter, says a leading analyst.
Since the beginning of January, Bitcoin has fallen by more than $10,000.
Despite these lows, analysts believe the cryptocurrency will recover way beyond the highs of late 2017.
In the last week or so, Bitcoin’s value is struggling below $7000.
In December, the price skyrocketed to a record-breaking $20,000 before pulling back again.
A number of factors are contributing to the fall in price such as cryptocurrency regulation fears in critical markets like South Korea.
The continuing threat of regulation results in greater investor caution.
According to Bitcoin expert and former COO of Skype, Michael Jackson, fortunes will soon reverse.
Speaking to The Independent, Jackson said the current price drop would seem “trivial”:
“The price has been driven by speculators and they suddenly got cold feet but there’s considerable effort going on behind the scenes, including new underlying technology that is powering faster transactions.
“Meanwhile, regulators seem open-minded and are now working to eliminate the risks for consumers.
“So I see no reason why bitcoin shouldn’t fulfill its dream.
“And if it does then recent price falls will appear trivial.”
Jackson has previously suggested that Bitcoin will eventually be worth millions of dollars.
He says the leading crypto’s inherent value is due to its potential use as a payment mechanism and store of value.
In an interview with Newsweek in December, Jackson said:
“If it reaches even one percent of the value store of other major money supplies, like the US Dollar, it could be worth 100-times what it is today.”
Typical behavior for Bitcoin
Despite its scale, the fall in price is fairly typical for the volatile cryptocurrency.
In the last five years, Bitcoin’s value has barely enjoyed any increases in the first quarter of each year.
— Jerome Schweizer (@jerome_1202) March 30, 2018
Other analysts believe that Bitcoin’s price is incidental in comparison to the real implications of the underlying technologies that power cryptocurrencies.
The founder and chairman of venture firm BCG Digital Ventures, Jeff Schumacher, claims the excitement surrounding the price of Bitcoin distracts from the potential of other digital currencies like Ethereum, which offer far greater scalability and more efficiency than Bitcoin.
These advantages are key characteristics for allowing mainstream adoption.
Speaking to The Independent, Schumacher explains:
“While the buzzwords are ‘bitcoin’ and ‘blockchain’, the power words are ‘world computer’ [referring to Ethereum] and ‘third-generation protocols’ [referring to newer cryptocurrencies like Tron and Cardano].
“Bitcoin is just a distraction but world computer and third-generation protocols are the game changers – that’s what we’re excited about.”