Bitcoin’s price this morning is $7697 up from Sunday’s drop to $7499. And many wallet owners and Bitcoin investors are hoping for a return to the $8000 price point. It’s an accumulation of last week’s positive news coverage surrounding Bitcoin, mostly stemming from Blackrock’s involvement. The world’s largest asset manager is working with the Financial Stability Board (FSB) on regulation — which has set a clear signal for the investment community and one that many people long have waited for — namely moving Bitcoin and other cryptocurrencies into mainstream finance. It’s a long awaited and well-deserved acknowledgement of Bitcoin’s legitimacy.
Some analysts such as eToro’s Matthew Greenspan even believe that bitcoin may be “just on the cusp of the largest bitcoin bull run in history”. We here at coinexpress.co.za urge caution and advise anyone considering Bitcoin or other cyrptocurrencies to invest only what they can afford to loose. While astronomical price increases might still be in Bitcoin’s future, so are big price drops, as with any investment product.
The recent positive news coverage had such a large effect that even tier 1 banks and financial institutions are exploring their options with bitcoin. Certainly the arrival of Blackrock in the crypto space is a game changer, and Bitcoin and other digital coins still only represent less than 1% of the daily volumes of the FX market. Patience and no panic is advised. Any news to come will create big wave effects on Bitcoin’s price, but the cryptocurrency is still years away from reaching its full potential.
Bank and other financial regulations are still holding back due to the lack of regulatory oversight and the many risks associated with digital currency and its storage. But this also creates a huge opportunity for insurers to get into this market and to partner with Wallet providers.
An insurance and low settlement risk will be one of the major requirements for banks in order to really start investment into Bitcoin and the likes.
We cannot predict how long it will take before crypocurrencies will be on the same level of quality as other financial products, but one thing is for sure: decentralized, non-fiat money is here to stay. Given all the recent developments, it seems that all the bad times for Bitcoin may be over and a recovery is underway.
