Following the bitcoin hype a few years back, the cryptocurrency has suffered massive losses in value and was even dubbed the worst investment for 2014. Prices had skyrocketed past the $1,000 mark before bitcoin sank for the next few months and the market enthusiasm faded.
The question on most investors’ minds these days is: Can the bitcoin still recover this year? It seems that the cryptocurrency hasn’t fallen short in terms of gaining mainstream acceptance, as more online merchants and establishments have included bitcoin transactions in their payment options. Positive developments among startup companies have also been going on, with some hiring former federal officials in order to aid legislation and transparency for the bitcoin.
Bitcoin Regaining Ground
At the core of it all, the bitcoin infrastructure never really went any major changes, as the blockchain or public ledger of transactions remains its most appealing feature. For many, this puts bitcoin as a prime alternative for exchanges, as it guarantees more security and anonymity.
However, the recent shutdown and hacking of some exchanges leave much to be desired, with market watchers wary that the cryptocurrency could continue to exist and not be vulnerable to more security threats. Apart from that, the complexity of the technology involved in bitcoin mining and trading has somehow discouraged the general public from accepting the cryptocurrency.
For most industry analysts, the main challenge facing bitcoin these days is the ability of the community to police itself, as the lack of regulation from financial agencies doesn’t guarantee any fallbacks during theft or hacking incidents. Ever since the closure of Mt. Gox, traders have been uneasy about storing their bitcoin in online exchanges and have weighed on the cryptocurrency’s value.
Increased oversight in the bitcoin industry might be enough to restore the demand and security for the cryptocurrency, which might eventually shore up its value to its previous highs and beyond.