Bitcoin enthusiasts seem to have moved on from the cryptocurrency’s free fall last year, as price has been hovering around $240 for quite some time. Some say that this is the new standard for the digital currency’s price for the foreseeable future, as there are no more speculative trades that could push its value back to the $1,200 levels.
Others believe that the cryptocurrency could have room to recover, although the focus might be on its practical usage rather than its value as an investment. Of course this could depend on how monetary authorities approach bitcoin and whether or not they try to restrict developments in the industry.
The Future of Bitcoin
Bitcoin startups that focus on payment gateways are a dime a dozen these days, paving the way for a more competitive marketplace, which is always good for innovation. Others have channeled their efforts in creating funds that allow investors to profit from price changes in the cryptocurrency while still being able to diversify risk.
For now, there’s still a lot of skepticism clouding the industry, with some governments taking a cautious approach while others keep an open mind. However, the increasing number of scams and hacking incidents have led certain places to ban bitcoin completely.
In the US, regulation is already underway in New York, with the final version of BitLicense set to be released. This could prove to be crippling for startups in the state, as it would require a lot of licenses to be secured for products and this would certainly be costly. In contrast, New Jersey is considering legislation that might offer tax breaks for bitcoin startups.
For others, its the underlying blockchain technology that could prove to be the saving grace of bitcoin. In Honduras, the government is already working on a blockchain-related approach to establishing a secure land registry. Perhaps more companies could also explore this route much later on this year.