If Bitcoin hasn’t been in the news lately (Bank Innovation included), it’s because things aren’t going that well for the best-known cryptocurrency, or for that matter any of the altcoins.
A new report from Juniper Research found that the value of annual Bitcoin transactions will decline in 2019. Gone are the days from last December when Bitcoin had surpassed $17,000. Today, it is hovering around $6,599 as of 11.00 AM ET — that’s a drop of over 60%.
And then there is the advertising ban from companies like Facebook and Google; and banks such as Chase, Bank of America, Citi and other FIs that have banned the purchase of cryptocurrencies via credit cards, the various multi-million dollar scams that peppered the news earlier this year, are only adding to the beleaguered status of Bitcoin.
According to Juniper’s report, the daily transaction volumes has fallen from an average of around 360,000 per day in late 2017 to just 230,000 this September. That daily transaction value also dropped to $670 million during that period, down from $3.7 billion.
The report’s author, Dr. Windsor Holden, stated:
Bitcoin has no intrinsic value. Like any asset, it is worth whatever someone is prepared to pay for it, but it has no meaning or existence beyond the confines of the ledger. It is a bubble, and there is a strong possibility that this bubble could burst in the near future.
Tell us what you really think, Dr. Holden! So will Bitcoin bounce back? You may be able to guess Dr. Holden’s position from his previous comments.
Bitcoin has not only fallen sharply from its December 2017 peak, but has failed to recover despite the weakness of a number of leading fiat currencies, continuing uncertainty around Brexit outcomes and ongoing trade disputes between the US, China and the EU. The study claims that if Bitcoin cannot make gains in such favourable circumstances, then it is unlikely to prosper as and when these issues are resolved.
But then again, things may take an unexpected turn in favor of Bitcoin. At least that’s what Goldman Sachs is probably hoping for.
Bitcoin is currently trading at $6,599 as of Tuesday, October 9 at 11.00 AM ET.
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