Is this what we need to Send Bitcoin to the Moon?
The markets have bled out over the weekend, prices are in the red and investments are leaking value throughout. As it stands, we can’t see if this is just an organic result of a bear market, or if something more significant has happened here, the figures do suggest that an event may have triggered this slight purge – generally speaking however this is more likely a result of the bears and another retraction that is likely to help Bitcoin find a new bottom for the past few months.
How low will Bitcoin go?
In all honesty, nobody knows how low Bitcoin will go. We constantly see ‘experts’ appearing that shout; Bitcoin has already reached its bottom! And others, crying that; Bitcoin isn’t even near its bottom yet! Who are we supposed to believe here? Do these experts really know what they are saying?
No, of course not, because the truth is, nobody knows how low Bitcoin will go. Technically speaking, there are indicators to suggest that Bitcoin is ‘unlikely’ to move past a certain threshold, however, the markets are volatile and unpredictable so, in reality, we can’t take these indicators as fact – much like everything else, they are simply just speculation.
All things considered then, Bitcoin could and looks likely to sink past $2,000.00. Technically, it could drop below $1,000.00 to in the coming months – if this does happen, we can expect a huge buying surge to take place which in turn will boost the value of Bitcoin. As low as Bitcoin can ‘technically’ fall, it can also climb too. This fall is not necessarily a bad thing, as recovery could take hold sooner, rather than later and moreover, a recovery could come as a direct result of a sudden low price.
So, what will pull Bitcoin out of this hole?
A low price for Bitcoin makes it cheap to buy. If Bitcoin falls below $1,000.00, a lot of people will start to buy in, simply on the premise that in the past, we have seen Bitcoin hit $20,000.00. A fall below $1,000.00 would be quite dramatic and frankly, we don’t want it to have to come to this. There’s something else, something more positive that could pull Bitcoin out of this hole… cryptocurrency adoption.
The premise of cryptocurrency adoption is the mainstream use of cryptocurrencies, the adoption of Bitcoin by the masses. In order to make this possible, Bitcoin needs to be easy to buy. This is where stablecoins come in to play – they make Bitcoin and cryptocurrencies easy to buy by offering a digital currency that is tradeable against various cryptos, but is pegged to FIAT currency, meaning its value does not fluctuate. This reduces the risk of many investments and also opens up the markets significantly.
Adoption becomes more realistic, when stablecoins are adopted, news out of Texas suggest that this is something we could expect to see sooner, rather than later. When stablecoins are adopted, Bitcoin adoption simply has to follow suit.
According to Hackernoon:
“Earlier this month, the Texas Department of Banking updated its Supervisory Memorandum — 1037 (Guidance), which offers guidance on the application of the Texas Money Services Act (the Act) to digital currencies. The memo divides these virtual currencies into two basic categories: centralized and decentralized. Centralized currencies refer to those created and issued by a specified source that rely on an entity with some form of authority or control over the currency. Meanwhile, decentralized virtual currencies do not rely on a central repository.”
“In other words, the TDoB understand stablecoins as having monetary value, given that these decentralized virtual currencies provide holders with a redemption right to exchange them back into sovereign currency at any time. The fact that Texas is addressing stablecoins in its money regulatory guidance is relevant not because they are doing it first — though they are, which deserves separate recognition. Most importantly, this sets a precedent for other agencies to devote attention to this issue.”
Texan authorities are starting to recognise stablecoins, spurring on the adoption of such currencies in the state. As stablecoins are adopted, more people will start to purchase cryptocurrencies, including Bitcoin. This creates a culture, a culture that exists around the mainstream adoption of Bitcoin.
And what does adoption lead to? Higher prices! We hope at least…
Okay, so Texas alone aren’t going to encourage a huge surge in the price of Bitcoin, however, this news and this recognition of stablecoins in Texas could be enough to encourage some low-level adoption in the state. Moreover, with Texas now fully behind stablecoins, other states are likely to follow suit and investigate this area too. Will this encourage the adoption of stablecoins across the United States by the mainstream? Perhaps so.
And once the USA has the stablecoin ‘culture’ secured, the rest of the world should open up to. That’s what we hope to see anyway!
For now, let’s keep an eye on the markets and hope that this sudden drop balances out soon enough. Indeed, a huge price fall could be a good thing in the long run, though I’m not sure any of us are ready to deal with the stress that will bring just yet. Hold on traders!
Crypto Revolution Giveaway
Have you heard? Crypto Daily have launched their latest Ethereum giveaway, one that is set to inspire the start of a new crypto revolution!
Click here for more information
Click here to take part!
Source: Read Full Article