Bitcoin’s price fluctuates rapidly, creating opportunities for risk-takers to trade this cryptocurrency for profits. On the other hand, some governments and environmentalists discourage people from investing in this virtual currency. Also, some companies and regulators are distancing themselves from Bitcoin for environmental and taxation concerns. Ideally, Bitcoin’s uncertainty has prompted many investors to avoid this cryptocurrency.
But Bitcoin’s price has increased over the years since its introduction. What’s more, some individuals have made a lot of money by trading this cryptocurrency on platforms like bitcoin-buyer.io . Therefore, Bitcoin’s demand and price have indeed increased over the years. But many traders, investors, and people interested in this cryptocurrency wonder whether Bitcoin’s price will eventually stabilize.
Nevertheless, some experts believe that Bitcoin’s value will stabilize at some point. Here’s what could stabilize the price of this prominent cryptocurrency.
Bitcoin is a sensitive cryptocurrency that has experienced a price rise since its introduction. Large corporations and e-commerce marketplaces have also started taking Bitcoin payments. Some are even developing blockchain and Bitcoin strategies. And this shows they have faith in Bitcoin and other virtual currencies.
Tesla took Bitcoin payments for cars before announcing it wouldn’t accept the cryptocurrency. However, payment platforms like MasterCard, PayPal, and Visa still take this cryptocurrency. Perhaps, that’s because they have realized that many customers use MasterCard, Visa, and PayPal accounts to buy Bitcoin. Therefore, these platforms make transacting with Bitcoin securely easier for their customers.
Increasing Hedge Usage and Credibility
Most people trade Bitcoin on under- or unregulated crypto exchanges. That means the platforms lack proper standards for safeguarding users. Therefore, most people imagine the difference between trading or investing in Bitcoin in a South Korean exchange than a forum that offers CBOE/CME, giving them a credible and safe investment alternative.
Bitcoin regulation could increase credibility and its use to hedge against inflation. Even if governments can’t regulate cryptocurrency completely, they can set rules for crypto exchanges to safeguard traders and investors. And this could facilitate price stabilization.
Bitcoin uses blockchain technology, making tokens untraceable. For this reason, some authorities see it as a money-laundering tool. Also, some people associated Bitcoin with criminal activities before its widespread use and adoption. For instance, some experts argued that criminals used around $5.5 billion in cryptocurrency money laundering annually.
Thus, blockchain may create a public ledger for cryptocurrency transactions but leave a loophole for criminals to use Bitcoin to obscure a trail that may lead to the source of the crime-related funds. Also, crypto mixing services are aspects of the blockchain networks that create anonymity for the funds and their users.
Bitcoin’s regulation could prevent people from misusing this cryptocurrency. If governments focus on areas like tax evasion, anti-money laundering, and other fraud activities, they can help in stabilizing this cryptocurrency. Hence, people could eventually use Bitcoin for cleaner causes and benefit from the crypto economy.
Fearing a Possible Ban
Many initial coin offerings and startup companies fear violating the current regulations. Others are afraid of the uncertainty of future regulations. Thus, they can’t launch innovations and ideas around cryptocurrencies. Currently, many crypto-based startups operate within rules that existed before Satoshi Nakamoto introduced Bitcoin. Several agencies have overlapping oversight in many areas requiring improvements.
Therefore, regulatory improvements can encourage innovation and enhance investments in the crypto industry.
The Bottom Line
Bitcoin will take time for its price to stabilize. Nevertheless, the growing interest in this cryptocurrency among traders, investors, and regulatory agencies point in a positive direction. What’s more, Bitcoin increasing usage and adoption means its value will eventually stabilize as miners produce all the 21 million tokens that can ever exist, according to its network protocol.