Three reasons why we should be bullish on Bitcoin
A rash of delays and disappointments have hit the cryptoindustry. At times like these, it’s tempting to throw in the towel and give up on Bitcoin. What are the reasons to be hopeful? What changes coming soon will change the mood?
In the past few weeks, the institutional Bitcoin future product Bakkt has been delayed indefinitely, and the much-anticipated VanEck SolidX Bitcoin ETF was scrapped, apparently due to the US government shutdown. Ethereum delayed its Constantinople upgrade due to a critical bug, and more exchanges have been hacked around the world.
However, crypto as always had its ups and downs. Here are three reasons to be hopeful:
Reason 1 – The Miners still believe
As CNR reported, the mining difficulty of Bitcoin recently adjusted 10% upwards, breaking a months-long downward trend caused by the bear market. Newly available data shows BTC’s hashrate has risen over 35% from its recent low.
This uptrend in hashrate suggests that miners think there is an imminent price recovery on the cards.
Reason 2 – Crypto is undervalued
The entire market capitalisation of cryptocurrencies is $113 Billion which is approximately the same as that of PayPal ($111 Billion), yet the amount of innovation and development effort being put behind cryptocurrencies is staggering. Very few ICOs have launched their product, but plenty are still in development.
Blockchain is such a disruptive technology for reducing cost, increasing transparency and transferring value. It’s only a matter of time before the value is realised.
Reason 3 – Institutional investors are coming
Have no doubt, where there’s money to be made the banks will come. However, no bank will risk fines for trading in unregulated markets so they are playing the waiting game.
Although the ETFs in play have been delayed indefinitely, it’s only a matter of time before full regulation is published and cryptoassets have proper regulatory oversight, meaning they can finally shed the baggage of the dark web and move towards the establishment.
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