News
19 Nov 2021

Bitcoin’s Wild Ride and the Year Ahead

To say that Bitcoin has over-performed this year, as compared to other cryptocurrencies, would be an understatement. Bitcoin has been riding the wave of success over the past few months and looks stronger than ever. However, there are still some investors who are concerned about whether or not the leading crypto can keep its winning streak up. To find that out, we will have to look at a few factors that could make or break Bitcoin’s future.

Regulations

First, let’s acknowledge the elephant in the room, which in Bitcoin’s case, are regulations. While there have been some countries that have adopted Bitcoin or are getting ready to, others have continued with their strict stance towards the cryptocurrency. For instance, China had recently clamped down on crypto mining operations across the country, stating that it was energy-intensive. The country has also ordered its banks not to invest in crypto businesses. Another major blow to cryptocurrencies was the fact that the UK regulators have banned Binance. But not all of this is being considered as bad for Bitcoin. For instance, according to many experts, the actions that have been taken by the Chinese government recently will lead to better decentralization and better regulation.

In the US, cryptocurrencies are faced with a unique problem, which is over-regulation, which is mainly because, in the United States, several departments are charged with different regulatory tasks from various angles, which can result in complications for cryptocurrencies. That being said, many crypto analysts are hopeful that the US will figure out the best way to regulate cryptocurrencies for their benefit and the benefit of others in the industry, including investors.

Volatile Crypto Market

If you have been following Bitcoin’s rise, you may have noticed that the crypto industry is a highly volatile market. Bitcoin investors have already seen the cryptocurrency’s value rise and plummet, only to rise again. Bitcoin reached a peak in April when it hit nearly $65,000, and then in June spiraled down to just $30,000. So, it’s easy to see that the volatility of the crypto industry is the main cause of concern for many cryptocurrency investors. That being said, Bitcoin investors still view the cryptocurrency as the digital equivalent of gold, which is why they are still loyal to the cause. In their view and many crypto experts, Bitcoin is a form of digital asset that is uncorrelated to the wider market and will result in major gains in the future, despite volatility in traditional markets. This is the view shared by many Bitcoin investors who see the cryptocurrency as performing better than the S&P 500 index, and this trend doesn’t seem like it’s going to slow down any time soon.

Environmental Impact

Many previous adopters of Bitcoin have raised their concerns on the environmental impact of crypto mining, a point that was also raised by Tesla and SpaceX founder Elon Musk not too long ago. The truth is that crypto mining equipment has the tendency to suck up a lot of energy, which is why energy consumption has risen significantly even in those countries where Bitcoin mining has become the norm. But, all this can change as Bitcoin miners make the switch to renewable energy.

There is a growing trend of crypto miners that have moved to solar energy to power their mining operations, significantly reducing the high amount of energy consumption that Bitcoin mining is known for. With more ethically conscious decisions like this, Bitcoin mining will not be viewed as such an environmental taboo in the not-so-distant future.

Reliable Platforms

There is also a growing need for reliable crypto trading platforms where new investors can feel confident when investing and trading in Bitcoin and other cryptocurrencies.

Bitql.cloud is one such platform and is proving to be one of the go-to options for beginners as well as experienced Bitcoin investors who want to increase their digital assets.

 

(Sponsored Article)

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