Bitcoin Fights On As BTC Price Struggles Under Weight Of Attacks - Coin Observer
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Bitcoin Fights On As BTC Price Struggles Under Weight Of Attacks

Bitcoin is resilient.

People continue to debate the merits of the world’s most massive cryptocurrency project. As they do, they swing from moments of wild euphoria to deep, dark depression. What the “market” thinks about Bitcoin varies wildly day to day.

Lately, the debate about Bitcoin has gotten polarized. Two extreme sides are fighting it out, with opposed views. Bulls are confident that cryptocurrency solves problems and will eventually supplant current forms of money.

People with a bearish outlook are certain the whole thing is a big Ponzi scheme that offers no discernible value.

It’s safe to say that the truth, more likely, lies somewhere in the middle.

Regulation Is Having a Chilling Effect on the Price of BTC

It’s fair to say the increase of regulatory activities worldwide prevents the rise and rise of Bitcoin.  Governments, who are late to the game, are playing catch up and targeting cryptocurrency projects as juicy, cash-rich targets. They’re increasingly enforcing actions on ICOs, perceiving them as if they’re traditional security offerings.

What’s happening now is an inevitable result. Governments are about control. As the growth of cryptocurrency spread rapidly to users from around the world, the need to control this digital asset increased. Now, countries from Asia through the United States are quickly adding regulations and laws to gain sufficient authority over projects.

These new moves cause uncertainty, and that’s when the shorts come out in full force. It’s straightforward for shorts to spread FUD each day when there’s corresponding bad news about the industry. Targeted enforcement actions convince people to change their ways of doing business, which could mean the days of halcyon growth are over.

Altcoins Are No Safe Haven

People cannot just run to altcoins when Bitcoin drops. In fact, when the price of BTC declines, there’s almost nowhere “safe” long-term cryptocurrency holders can go. Often the value of altcoins will decrease much more rapidly than BTC, performing dramatic swan songs as the King currency crashes. As goes Bitcoin, so go alts.

During down-trending and side-moving times, what value of store will suffice? Since holding a coin is not attached to a specific money-earning purpose, it’s difficult to peg real-world value. When coins drop, this basic psychological fact compels people to act irrationally. Crypto will likely always be a wild, whip-sawing market in a way the stock market never would. Applying SEC rules from the twentieth century could be a misstep that sets cryptocurrency back decades.

The Future Brings Change

Does this mean that something new and better will emerge? Future thinkers may already be bored with Bitcoin and the Alts. Since they spend their time in a place and world that isn’t here yet, they envision newer, better, and shinier alternatives. Are the current models of encryption and the blockchain the only way forward in currency innovation? Obviously not. There are many different approaches to supplying money, with all kinds of varying technological frameworks. Shorts are betting that the current blockchains will disappear in a similar way to last century’s technology (and last decades.)

2017 Had a Slow Start and a Strong Finish

Bulls remember that last year got off to a slow start but had a tremendously strong end. That means there’s a chance for people to experience the same sort of run again this year, depending on the timing. The sector remains a growth story, and will for a long time. Investors are not too late to get in on the game, but they will need to pick their spots. By now many are learning why there are so many warnings about putting money into cryptocurrency. It’s volatile and extremely risky! People can and do lose money all the time.

None of that should matter to speculators. Speculation means taking a risk and hoping for a reward. Many people will continue to push funds towards cryptocurrency because they expect higher returns that they get from alternatives. The markets are large and established, and new people continue to arrive.

Long-term bulls will continue to accumulate Bitcoin, buying on “the dips” until they’re out of funds.

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