The early months of 2018 had seen Bitcoin and other cryptocurrencies take a beating, threatening the profitability of investors who had dared to back them. However, with a series of events propelling cryptocurrencies to their former glory, we find ourselves asking once more if it is time to place our faith in these tokens again.
With government legislation in countries like Estonia, Switzerland, Malta etc. backing the crypto space, and technological innovations coming up in the form of Lightning Network and other smart solutions, Bitcoins seem to be back on track and how!
Although crypto regulation is still far from being comprehensive, there has been an increased enthusiasm among regulatory bodies to frame policies for this space. For example, CoinBase lately announced that it had worked with the staff of SEC to work out its operations as a broker-dealer. It can, therefore, start working with government approved securities. Moreover, even avowedly disinclined firms such as the ETF giant BlackRock Inc have started exploring the space and expressing the beginnings of an interest to involve themselves with the industry. Further, with people like Sergey Brin and Steven Cohen mining digital currencies, the prices of the tokens have shown a largely upward trend.
As of July 19, 2018, Bitcoin prices are up by $1000 vis-à-vis the last week and have remained buoyant over the past month. However, this trend does not guarantee that Bitcoin will continue on its upward surge. Virtual currencies have known to show a substantial degree of volatility in the past and this time may not be any different. Having said that, we cannot but revel in the fact that the space has been seeing quite a bit of innovation lately and that could potentially ring in brighter days for the virtual currencies.
With great risks, remain the possibilities of reaping great rewards and the surge in the space can be a precursor to earning them. With improvements in technology and adoption, cryptocurrencies are presenting themselves as a rather lucrative avenue for secondary investments and could be extremely profitable if investors focus on understanding the technology they are preparing to embrace. Ethereum is not far behind Bitcoin in this arena.
While blockchain adoption remains at a nascent stage, we can no longer ignore its mammoth potential to revolutionize how we understand the economy and as Bart Smith, a Wall Street honcho had said a few days ago, Bitcoin investments might be the best possible future we could gift ourselves.