Bitcoin Bounces Back – Getting Ready to Do Bigger Things
Since Bitcoin (BTC) has been whipsaw on political, economic and social influences, we have a step back to soak up the larger image. Whilst it is natural to get caught up from the short-term marketplace changes, crypto-bulls such as U.S. venture capital investor Tim Draper lately announced that “Bitcoin is a portion of a significant motion” and remains “the ideal spot to place your money.”
One index for Bitcoin’s long-term expansion is Bitcoin’s capacity to bounce back from market affects. Every time a catalytic event happens, such as the fallout in the UPbit raid in South Korea, then it normally sends tremors throughout the crypto marketplace. He said that the “markets have overreacted previously” and “as the marketplace evolves, investors will develop a thicker skin.”
Meanwhile, the Blockchain Intelligence Group analyst, Shone Antsey emphasized that Bitcoin dropped less the other coins following events such as the South Korean evaluation. Therefore, although BTC always struggles with competition against other digital currencies, it’s still seen by Antsey as “the very secure and dominant cryptocurrency together with the greatest network impact.”
The fact which other monies are constantly rolling out new innovative developments and compact attributes, is also assisting to driving the crypto marketplace, and subsequently forcing Bitcoin’s own improvement.
Increasing Investor Endorsement
Bitcoin still has a resounding bullish news sentiment and new-found endorsements from respected investors. This is a strong indicator that BTC has a promising long-term growth potential. U.S. venture capital investor, Tim Draper recently declared in a press interview that despite these rocky fluctuations, Bitcoin is part of a “revolution at a better currency that is more secure, decentralized, effective, more useful and global.” Draper continued “it’s open to everyone and far superior than the fiat currency.”
Then he cited how “nobody has ever hacked the Bitcoin blockchain’ and because crypto isn’t connected to the outside market factors, “you are not going to lose your luck.” News has also surfaced that other iconic billionaire investors, namely George Soros, Alan Howard and the Rothschild family are now investing in electronic monies, which is another bullish sign for Bitcoin’s potential.
Validation from Traditional Institutions
Though some skeptical investor tycoons such as Warren Buffett recently brandished Bitcoin as “rat poison squared”, there have been slow indicators that Bitcoin and crypto happen to be validated by traditional financial institutions. Back in April, Nasdaq paved the way for recognized investors to reap the benefits from Bitcoin, by partnering with crypto-exchange Gemini. Major banking giants such as Barclays and Santander are currently using blockchain technologies for certain foreign exchanges and transactions. There are also rumored plans in the pipeline for additional banking and blockchain ventures.
Meanwhile, monetary heavyweights such as Goldman Sachs (GS – Get Report) who were originally skeptical have now created a crypto gaming desk. Former Goldman Sachs executive Gary Cohn stated of cryptocurrencies: “The planet is going to have global cryptocurrency sooner or later.” Novogratz also forecasts that the New York Stock Exchange will be busy in crypto trading market within six months, which should be another long-term trigger for Bitcoin.
Bitcoin Breaks Into the World of Tech
Bitcoin has been gaining ground and breaking into the world of technology this year, which highlights its growing relevance. Since technology fans are often more acclimatized to change than mature financial institutions, it is not surprising that major international technology giants like Microsoft (MSFT – Buy Report) are now using the Bitcoin platform for particular transactions. PayPal (PYPL – Get Report) has also jumped to the Bitcoin bandwagon and is accepting BTC as a payment method.
While these new platforms provide more competition for Bitcoin, in addition, it highlights the increasing relevance of crypto for the area of tech and finance. Competition also helps drive more growth and long-term gain, so we’ll have to see how this pans out for Bitcoin’s future.