Enthusiasm is not lacking among cryptocurrency investors now that the price of Bitcoin has exceeded $ 10,000 for the first time in 5 months. Several movements are necessary for this recovery to be sustainable.
Institutional investment must accelerate
Bitcoin has always had an institutional interest. There are now many legacy investment funds moving around in the market. However, very few have made great progress. This restriction can be explained by the high volatility of the market, as well as by the absence of government regulations and legal recognition of blockchain assets.
During the last bullfight, when the price of Bitcoin reached its high level, institutional investors remained on the sidelines. As all the signs indicate a clear improvement, these players should not follow the same path.
Development of the platform must continue
While Bitcoin’s hegemony in the crypto space remains strong, the platform has clear technical weaknesses. Scalability is a challenge, because the transaction capacity in the chain cannot meet mass absorption requirements. The Lightning network must be effective as the network activity increases.
In summary, for the BTC to remain the main cryptocurrency, it cannot undergo a repetition of the slow confirmation times and high rates that defined the last bullfight.
Bitcoin has also been criticized for a long time for its high consumption of electricity, which now exceeds the use of many small countries. Solutions to this problem, which include the use of renewable energy sources and the use of “temporary” residual electricity from traditional power plants, should begin to take shape.
Bitcoin Fiat On-Ramps needs improvement
This question is perhaps the biggest obstacle to mass shooting. Public interest in Bitcoin is great, however, most potential users cannot navigate the Byzantine process of buying it. This bottleneck must be opened so that the possibility of entering the encryption market is fluid and easy to use.
Fortunately, cryptocurrency ATMs are proliferating and trading apps are increasing buying opportunities. There is no doubt that buying Bitcoin is much easier than it was five years ago.
However, it should also be noted that trade is increasingly being billed by government regulations which hinder their ability to serve large segments of the population. For example, Poloniex cut the entire American market and Binance was forced to create a new exclusive exchange for American citizens. Therefore, government collaboration is important for clients to have reasonable access to blockchain assets.
No matter where the price of Bitcoin moves in the short term, the market sentiment is currently optimistic and the blockchain revolution is real. Therefore, there is no doubt that the challenges of mass adoption will ultimately be resolved.
Do you think the price of bitcoin remains above $ 10,000?