It is no secret that Bitcoin has been experiencing tough times in recent times. Since the Cryptocurrency exchanged at almost $20,000 in December 2017, its price has been decreasing since then. This past weekend, the virtual currency’s value has reduced by 10 percent. The currency is now worth about 50 percent of its value in January.
Challenges In The Crypto Industry
Bitcoin and other Cryptocurrencies have experienced negative news in recent times. Cases of cyber hacks have engulfed Cryptocurrency news. Transactions on the platform have also been decreasing. Crypto mining is associated with enormous power consumption. Various established financial industry players have criticized Cryptocurrencies for the lack of regulation. A combination of all these factors has adversely affected the popularity of the Cryptocurrencies.
The Positive Side Of Cryptocurrencies
In the midst of all the challenges experienced by Cryptocurrencies, they have enjoyed acceptance by some of the largest platforms and exchanges in the world. These bold moves will allow investors in these companies to trade in bitcoins. It will also enhance bitcoin transactions and help in boosting its acceptance.
Companies That Have Shown Interest In Bitcoin
Last month, The New York Times published an article revealing plans by Intercontinental Exchange (ICE) to develop an online platform to allow people to buy Cryptocurrencies. The New York Stock Exchange parent company’s move is expected to enhance the use of Cryptocurrencies. It is a move that will enable the virtual currencies to penetrate the financial market that the traditional institutions jealously protect.
Nasdaq is another company that is interested in virtual currencies. In April, the firm entered into a partnership with a well-established crypto-exchange, Gemini. The company is in the final stages of establishing a market for Cryptocurrencies.
Cboe Global Markets and CME Group are two companies that have already ventured in Cryptocurrencies. The two businesses joined bitcoin market in December last year. The move by ICE will make the company the first equities exchange trader in America to introduce a Cryptocurrency exchange.
The Impact Of The Current Developments On Bitcoin Prices
Cryptocurrencies are still young, and many people don’t understand how they work. The prices of virtual currencies have not yet stabilized although many people hoped that the participation of established financial institutions in the sector would assist. This is a demonstration of diversity and versatility of the market.
Bitcoin and other Cryptocurrencies will take time to mature. The current changes in Cryptocurrency prices will continue to be observed before finding a floor. However, the entrance of more established firms is expected to make it easy for the industry to stabilize.
Apart from this entrance, other developments have improved the face of the virtual currencies. The transaction fees are much lower compared to that charged when dealing with fiat currencies. More businesses around the world are accepting Cryptocurrencies as a mode of payment. Many regulators are also favoring the sector.
Cryptocurrencies are a product of technological advancement. Although the sector is facing turbulent times, it is in its early years. It is challenging to tell how long these changes will continue to be experienced. However, the entrance of established financial players in the sector and the increasing popularity of the currencies will continue to make the virtual currencies relevant.