Google’s latest stats have shown that Bitcoin has been the most sought-after cryptocurrency by both the average and professional investors in 2017. Now, everybody is on the lookout for the latest news and updates on the virtual currency.
Although Bitcoin has created quite a few millionaires, most investors are still worried about the volatility of the currency. The price has shot up to $20,000 a few weeks ago and investors flocked to purchase it. But more recently, on Christmas Eve, the price of Bitcoin saw a dramatic drop in value. A situation that gave shivers to many investors.
The Unavoidable Volatility of Bitcoin
It is important to remember that the basic idea of cryptocurrency is its decentralization, its minimization of regulation and an increased power in the hands of its users.
These conditions are what promote the volatility of the currency on the market. A Bitcoin specialist, Jean-David Benichou, said that the instability of cryptocurrencies is not surprising. He says that the technology will always display a disconcerting irregularity.
Many analysts and industry experts are describing their apathy towards the digital money market. It is, however, normal for all types of investors to be hesitant about new types of investments.
The Consumer’s Point of View
Tilman Fertitta, a US billionaire, recently said on CNBC that the average person is not yet close to investing in currencies like Bitcoin, unless he has at least some degree of insurance.
He adds that Bitcoin is not yet insured by the FDIC. This, according to him, will slow down the average consumer. However, the 60-year-old billionaire admits that Bitcoin could easily become a method of payment for all sorts of companies in the future.
Fertitta mentions that someone once said that the internet would change the world. And not so long ago, many were skeptical about the idea. Apparently, to him, cryptocurrencies are very similar to the internet.
Large Companies Are Hesitant
Since the launch of Bitcoin’s futures contracts on the CME and CBOE stock exchanges, many financial institutions have entered the new cryptographic currency sector. This has paved the way to a wider adoption of the trend. This year,Tilman Fertitta and NASDAQ are expected to embark on the adventure as well. However, several larger business groups still have their doubts about the market’s development and are still reluctant to invest any large amounts of capital.
Wolfgang Koester, Director of FiREapps, a company specialized in currency management and Forex trading technology, said that most larger companies are looking for less speculative environments. Moreover, he adds that large investors do not want to engage in the current state of the cryptographic market.
Many will wait for these currencies to be issued by governments to make the most of them. However, Koester says that he is for the idea of launching digital currencies and that he is ready to contribute to the development of the cryptographic market.