Jonathan Cheesman, one of the partners at Distributed Global believed that Bitcoin cryptocurrency has dropped down because of 5 primary reasons. Major causes are short selling, scams, dominance speculation, regulatory uncertainty and macro trend.
However, as the industry and cryptocurrencies keep on showing developments in facilities and legislations, Cheesman spelled out that a rising range of investors will acknowledge cryptocurrencies as powerful and legit store of value. To explain the term, store of value is the functions of an asset that can be save, retrieve and exchange at a later time, and be expectedly valuable once retrieved. More generally, it is anything that preserves obtaining power in the future.
Also, he mentioned that for others, things are even more serious at this point. Turkey and Venezuela being the most evident example and financial debt durability are a real threat to a lot of fiat currencies now. In seeking for worldwide stores of value gold has functioned as objective, but it is traditional. A crypto store of value is more sensible and more connected with the expanding millennial era.
Macro Trend and Short Selling
Short selling refers to the sale of a security (Bitcoin for example) that a seller does not own, or that sellers have borrowed. It is driven by a belief or speculation that the price of Bitcoin will drop. And so, it then be bought back at a lower price to create profit.
A macro trend is a persistent and pervasive shift in the direction of some occurrence on a global level. Bitcoin can be highly affected on what cryptocurrency is on trend today.
Regulatory Uncertainness and Poor Infrastructure
During the previous years, infrastructure aimed at large quantity of retail trader and institutional investor was basically non-existent. Last wall between cryptocurrency market and institutional investor was not taken out and there were very limited open tradable instrument that could accommodate the big cryptocurrency demand from qualified investors.
In addition to regulatory uncertainty on cryptocurrency, the susceptibility in current infrastructure held back huge amounts of capital moving in from wider economic market to cryptocurrency field. For this reason, the economic bubble of the existing crypto market is comparable in notion to past bubbles on year 2012 and 2016. The 80% cryptocurrency market correction happened in a same manner as prior drops. However, the anticipated retrieval of the market will radically vary from earlier attempts.
In past times, Bitcoin was not successful in securing momentum at significant support amounts. It has shown no indications of restoration for more than 2 years. But this calendar year, Bitcoin attempted thrice running off from the six-thousand dollar support level. Bitcoin failed but has not dropped substantially beneath the $6,000 USD support level. As reliable custodian solution and regulatory framework keep on improving or strengthening, more organizations will be taking a huge risk willingly to commit on a market even on its early phase.
Regulators around the world have had trouble with the responsible way of regulating digital currency. A decentralized movement shows a lot of challenges and issues in sorting assets including bad or unhelpful participants who hinder crypto. Because of this, everything has been moving steadily. However, general regulators have shown respect and trust on the probable developments. As a result, the regulatory uncertainty has decelerated institutional investors with the lack of data or risk control solution, insurance and custody.
Crypto Development in Countries like Japan and South Korea
By this time, Japan and South Korea have presented blockchain and cryptocurrency-related legislature to rule the blockchain and crypto industries. It will legalize these two sectors in their governing communities.
Days ago, CCN informed public that the Uzbekistan government has decided to make digital currency, ICO Initial Coin Offering, crypto assets mining, crypto exchanges, as legitimate fields.
Mike Novogratz, a billionaire investor once said that the future long term cryptocurrency rally is totally possible with the leadership by institutions like hedge and pension funds, assumed that vigorous custodian solution is likely to get adaptation in the next couple of months.
Bitcoin after Price Fall will Recover Soon!
Bitcoin is an open-source therefore; any feature of other crypto can be easily added to it. With its huge hash power or network nodes, Bitcoin will remain forever secure. Bitcoin has gained dominance during the crypto drop because as the hype slowed down, investors or speculators came back into Bitcoin. Blockchain aimed at decentralizing cryptocurrency and taking away the reliance from middlemen.
Bitcoin can be used as a store of value that anyone can trade back and forth on different market exchanges. It is a digital currency that is decentralized and trustless. The value will continue rising if people keeps investing on it. It can make life easier than using typical banking institutions. Time will come that every people will see the value and advantages of transmitting crypto value all around the world.
This cryptocurrency has made a fairly overlooked introduction in the world of finance in year 2009. But nearly two decades later, its profile has grown progressively as larger society is becoming more involved in this world’s substitute form of currency. Its value increased rapidly and has hit more than $19,000 USD support level during the end month of 2017. However, like every other cryptocurrencies, it has experienced highs and lows. June of this year, Bitcoin price hovered around $8,000 USD and on the next month, it goes down to $7,000 USD. This past few weeks and days, Bitcoin is observed to have up and down prices. As of this writing, one Bitcoin is valued at $6,323.13 USD. It may not touch the $7,000 USD that the team is heading for; at least, the price did not go beyond $6000.
Bitcoin, after a sudden loss can surely recover from all of it. Boosters, promoters and supporters still believe that Bitcoin can reach $25,000 value after a couple of years. In spite of the decline in value, there are still many financial institutions that accept it. Indeed, it is still a safe and profitable investment.
So, what can you buy with Bitcoin? According to spendbitcoins.com, more than 100,000 merchants accept Bitcoin payments. A majority of these merchants are from the US but there are also online services that can be accessed through Bitcoin. Products and services range from food to legal services.
Though there were issues with Bitcoin price volatility and high transaction fees, Bitcoin is still an excellent mode of payment for those who want a secure and fast way to purchase and access premium services. There won’t be lines, waiting times, and most importantly, no sensitive financial information would be shared.
Here are just some of the businesses and services that accept Bitcoin payments:
Purse.io (Amazon discounts, Amazon gift card to Bitcoin currency exchange)
Overstock (In partnership with Coinbase (not available on the mobile website))
Newegg (There are purchase restrictions)
Only a handful offline retailers accept Bitcoin payments but there are still offline retailer gift cards that can be bought with Bitcoin.
Airplane Tickets and Hotel Bookings
CheapAir (flights and hotel bookings)
Expedia (hotel bookings only)
Surf Air (memberships and charter requests)
Travel for Coins (Travel package booking)
Bitcoin Travel (All-in-one travel service)
There are transportation services around the world that accept Bitcoin payments. Most of these are car rentals, taxi dispatch services, and airport transportation accommodation services.
Software and Media Downloads
Microsoft (Microsoft account, Microsoft Store)
Big Fish Games (In partnership with Coinbase)
Several artists like Bjork and Imogen also made their music available for downloads through Bitcoin payments.
Shopify (Merchants can set cryptocurrency as an alternative payment method)
Etsy (Sellers can arrange to be paid in Bitcoin (over 100 sellers avail of this option))
Reddit (For Reddit gold premium membership)
ExpressVPN (In partnership with BitPay)
Gold and Jewelry
Sharps Pixley (small transactions only)
Apmex (transactions should not exceed USD$250,000)
JM Bullion (minimum of $100 and maximum of $250,000 per transaction)
Food and Beverages
Fold App (Enables cashless purchases in Starbucks)
There are also several physical establishments that accept Bitcoin payments. This includes the Pembury Tavern in London, The Pink Cow diner in Tokyo, and Old Fitzroy pub in Sydney. Some Subway locations also accept Bitcoin payments for their sandwiches.
BitHope (Select a cause you want to support)
BitGive (Bitcoin and blockchain leveraged global philanthropy)
GIMP (You can donate to support the GIMP project)
There are many charitable institutions and organizations that actually accept Bitcoin donations and contributions. A lot of them publicly discloses their Bitcoin wallet for easy donation transfers.
Intuit PayByCoin Services (Delivered as part of the Quickbooks Online invoicing)
Shakepay App (exchange bitcoins for dollars or Euros)
There are also unique ways to spend your Bitcoin. Some schools and universities actually accept Bitcoin payments. There were also reported Bitcoin payments for legal and accounting services. There are more stories of unexpected establishments and services accepting Bitcoin. Most of them don’t even have an online presence.
The trend is spreading all over the world. An example is a tree house lodge in Costa Rica that began to accept direct Bitcoin payments in December 2017. There are real estate listings that accept Bitcoin payments – some of these are properties worth millions of dollars! So if you’re asking what can you buy with Bitcoin? A property, yes it can buy you a house and lot and not just simply exchange bitcoins for dollars.
But even with the new adopters, it is said that more and more businesses and services are cutting off their Bitcoin payment options. Bitcoin price volatility is often the cited reason. The volatility can cause losses on the seller’s side as Bitcoin price may drastically drop soon after the purchase. Others cite lack of interest as only a few actually go and pay them in Bitcoin. Even so, Bitcoin still removes the risks that are inherent in traditional payment systems. There would come a time where people would no longer ask “What can you buy with Bitcoin?” They would instead ask, “What can’t you buy with Bitcoin?”