Since its highest peak in 2017, bitcoin has experienced quite a dramatic plunge. From the bans to regulation crackdowns on ICOs to the continuing trails of exchange hacks. It has been a year to forget for bitcoins and cryptocurrencies in general.
But has the tough season prepared bitcoin well enough for tranquil and recuperation? Or is it just preparation for tough times still ahead? Crypto experts shared their thoughts on the bitcoin’s highlights in the New Year. But like price volatility, predictions are tough to determine. However, there are common grounds as to how the year will shape for cryptocurrencies.
The Lightning Network
When it comes to bitcoin’s future the mention of the Lightning Network has become is persistent. And the mentions won’t slow down anytime soon. There is no doubt lightning network will be dominating conversations in 2019. The technology is promising to be a greater utility not just as a settlement layer but as a means of exchange.
In addition, Kyle Samani of Multicoin Capital shares that when the network size and capacity grows, users will experience usability issues due to emerging decentralized routing technologies and uneven capacities.
Samani also adds that if not handled well, the issues have the potential of creating Segwit level disagreements.
Bitcoin’s Year Of Building
It is common knowledge that bitcoin’s prices are at their lowest in a long time. Furthermore, the amount of BTC available vs the many big players interested in the coin makes it such that large purchases would push price up.
Digibyte’s Jared Tate says the continual growth of the ecosystem has made it too big and impossible to get everyone to agree on such major changes without a fork. Therefore such huge changes like protocol level updates and changes in mining algorithms can be quite an impossible task.
A Return To Bitcoin’s Origins
At this point, bitcoin is still bearish in the market. The technologies to solve the underlying issues are still infant while the bulk of regulatory enforcement in the US are following the bitcoin ecosystem.
Interesting use case models like the censorship proof payment used in Venezuela are being used to circumvent government oppression. Only a meaningful adoption of bitcoin can respond to the needs of these users.
Tough Times Ahead
Cryptocurrencies will be put to task in 2019, and bitcoin will not be spared either, especially after such a turbulent 2018. Bitcoin’s price has been slowly dwindling over the year and lack of a response for negative publicity is to blame.
Alon Rajic of Money Transfer Comparison says that it’s the Investors and speculators holding significant amounts who are saving the currency from crashing. But they might soon lose their patience and start mitigating losses. Then bitcoin will slip to its real price.
An Incoming Price Hike?
Peter Smyrniotis of Victory Square Technologies says that as an asset price, bitcoin’s market cap is still minute as compared to leading blue-chip stocks. This while the currency is not widely distributed and has high levels of capital concentration.
This fact has enabled price manipulation to become very easy. But according to Syrniotis, depending on adoption, we might very soon witness a rapid increase in its price. Its groundwork has already been set.