After a surge in 2017 to USD20,000 bitcoin crashed to USD3,000 in 2018.
What happened?
Guthrie Weissman in his article on “Beyond the Bubble” suggests some
reasons:
i.
Classic Bubble – international fever, FOMO element,
and random companies involved in the surge;
ii.
No institutional support – clampdown, financial
institutions balked and some bank CEOs denigrated the bitcoin; and
iii.
Internal battles – infighting by participants. Bitcoin
cash was developed by some miners, who disagreed with fundamentals of the
initial bitcoin system.
Is there any hope for bitcoin?
A hot commodity has turned into a hot potato. Even some toughest critics
do see some sort of future. This is a legitimate technology that is going to
expand. Dubai believes in blockchain and its future. It wants to become the
world’s first blockchain powered government. The initiative is to see
blockchain technology improve client services including banking, mortgages and
utilities.
So there is still hope for a rise but that depends on market participants
and government support.
Reference:
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