Bitcoin dropped below the $10.000 line in February and in that month that cryptocurrency broke the $10.000 line three times in two weeks. First significant blow to Bitcoin happened when in late January Facebook announced that they will ban ads on “cryptocurrencies, initial coin offerings, and binary options”. After that Bitcoin fell 12 percent. A few weeks later Indian government decided to ban the use of Bitcoin and other cryptocurrencies. Indian finance minister Arun Jaitley said then that the government does not recognize cryptocurrency as legal tender or coin and will take all measures to eliminate the use of these crypto assets in financing illegitimate activities or as part of the payments system. That statement contributed with a 6.5% drop in Bitcoin’s value in just 24 hours, leaving the most popular virtual coin at the $9,625 mark at that point.
Just the reminder that Bitcoin briefly neared $20,000 in December, and has had a atrocious time since then, partly thanks to regulatory moves against it in South Korea and India. Also, the US government officials and other representatives expressed their dissatisfaction with the state of cryptocurrencies. They called for the regulatory authorities to move promptly and take preventive measures to protect the investors’ funds.
But, after the Google, the world’s largest online ads provider, announced that they plan to ban cryptocurrencies advertising, Bitcoin prices briefly fell below $8.000 on Wednesday 14th March 2018.
So is this means that Bitcoin and other cryptocurrencies are done? Well, not necessarily, as Bitcoin’s obituary has been written countless times in its nine-year existence. Bitcoin had at least three declines of 70% or more since 2010 only to come back with a vengeance and reach higher highs.
Still, Bitcoin is accepted payment method at many places worldwide and for sure this isn’t the end of it. For example, Square offers cryptocurrency payment solutions for its customers, according to one Wall Street firm. There is a great number of Bookmakers and Online Casinos that accept Bitcoin as a deposit method. List of those casinos can be found here. Also, the unnamed PayPal executive said in February that Bitcoin will very likely become popular payment method in near future. So hold to your cryptocurrencies as they didn’t say the last word for sure.
This cryptocurrencies story is similar to dot-com revolution but this time anyone with access to a phone with an internet connection can buy or sell cryptocurrencies or directly participate in initial coin offerings in a matter of seconds. In dot-com revolution, only people that invested were large institutions, professional investors, and brokers. This time it is different. Despite most of the world population doesn’t really understand the value of blockchain, it might take years before a mass adoption of this technology will be seen.
But when the time comes, cryptocurrencies will skyrocket because anyone with the phone and internet connection will be able to participate.
On the other hand, maybe people will be more cautious this time, and Bitcoin will fall even deeper. Some economist predicts that in the years ahead Bitcoin will see a huge drop and that real value of the Bitcoin will be around $100, not $100.000 in a decade. According to them, Bitcoin will face reduced adoption because of a lack of legitimate transactional uses and increased regulation by governments around the world.
So the winter is coming for Bitcoin and other cryptocurrencies as few governments already started to realize that Bitcoin is really dangerous and it can be used for some criminal activities and money laundering. Can Bitcoin survive this?