Bitcoin Price
Bitcoin Price Will Remain Above $10k If These 3 Things Happen
Trevor Smith · @trevorcrypto | Feb 09, 2020 | 14:33
There is no shortage of excitement among crypto investors now that Bitcoin’s price has moved above USD $10k for the first time in 5 months. Several moves are needed for this recovery to be long-lasting.
Institutional Investment Must Accelerate
Bitcoin has long had an institutional interest. There are now many investment funds from the legacy financial space moving into the market. Nevertheless, very few have taken major steps. This reticence can be explained by the tremendous volatility of the market along with the lack of government regulation and legal recognition of blockchain assets.
During the last bull run, as Bitcoin price reached its all-time-high, institutional investors remained on the sidelines. Now, as all signs point to a clear recovery, these players must not follow the same path.
Platform Development Must Continue
Whereas Bitcoin’s hegemony in the crypto space remains solid, the platform has clear technical shortcomings. Scalability is a challenge, as on-chain transaction capacity cannot handle the demands of mass adoption. Thus, the Lightning Network must prove effective as network activity increases.
Simply put, for BTC to remain the top cryptocurrency, it cannot experience a repeat of the slow confirmation times and high fees that defined the last bull run.
Also, Bitcoin has long been criticized for its tremendous electricity use, which now exceeds that of many small countries. Solutions to this problem, which include using renewables and using off-time “waste” electricity from traditional power plants, should begin to take shape.
Bitcoin Fiat On-Ramps Must Improve
This issue is perhaps the greatest obstacle to mass adoption. Public interest in Bitcoin is high, yet most potential adopters cannot navigate the byzantine process of purchasing it. This bottleneck must be opened, with the ability to move fiat into the crypto market becoming smooth and user-friendly.
Fortunately, cryptocurrency ATMs are proliferating, and exchange apps are increasing purchase options. There is no doubt that buying Bitcoin is substantially easier than five years ago.
It is also worth noting, however, that exchanges are becoming increasingly burdened by government regulations that interfere with their ability to serve large segments of the population. For example, Poloniex has cut off the entire American market, and Binance was forced to create a new exchange solely for the U.S. citizens. Thus, government cooperation is essential if customers are to have reasonable access to blockchain assets.
Regardless of where Bitcoin’s price moves in the short-term, market sentiment is presently optimistic, and the blockchain revolution is very real. Thus, there is little doubt that any challenges to mass adoption will eventually be resolved.
Do you think bitcoin price will remain above $10k? Let us know your thoughts in the comments below!
Image via Shutterstock
