Is Bitcoin Dead? 4 Reasons Why It's Not

As the SEC’s opinion is itself not united and compliance standards will get clearer with time, it just seems a matter of time until the first Bitcoin ETF will get its approval. As the long-term impact of an ETF approval is controversially discussed, it is clear, that this could be the possible trigger for the next bull run. As the market is going back and forth exciting news and developments in the space are necessary to kick-off a crypto bull run in 2018.

1. Cryptocurrency market

As we all know, cryptocurrencies have undergone a huge crash dating back to the beginning of 2018During this huge sell-off, Bitcoin has lost over 2/3 of its alltimehigh and is currently valued around 6’500 US dollarsNonetheless, if we have a look at the price development during the last 3 months a high price stability is noticeable 

Bitcoin chart from July 2018 to October 2018 source coinmarketcap.com
Bitcoin chart of coinmarketcap.com

Bitcoins current period of price stability is especially remarkable because it is usually considered to be an extremely volatile asset. This might indicate that rock bottom has been reached and investors are able to estimate positive trends in the future. Many famous investors and venture capitalists are sharing the same opinion. E.g. former hedge fund manager Mike Novogratz recently said:

2. Bitcoin ETF

As discussions and speculations about an upcoming Bitcoin ETF are persisting for months. The US Securities and Exchange Commission (SEC) has already rejected two applications from the Winklevoss brothers. The reasons were mainly that there was no evidence for the absence of market manipulation and in general the lack of transparency.  

Bitcoin physical coin lies on dollar note
Bitcoin could probably make its way to the Wall Street during the next months.

As the SEC’s opinion is itself not united and compliance standards will get clearer with time, it just seems a matter of time until the first Bitcoin ETF will get its approval. As the long-term impact of an ETF approval is controversially discussed, it is clear, that this could be the possible trigger for the next bull run. As the market is going back and forth exciting news and developments in the space are necessary to kick-off a crypto bull run in 2018. 

3. Blockchain Investors

Fully regulated cryptocurrency gateways for institutional investors are progressing. Coinbase launched a custody solution for institutional clients as well as Goldman Sachs invested 140 million dollars in Circle, aiming to build a fully SEClicensed Blockchain securities exchange for institutional investors. 

stock charts table
Price chart of assets

Furthermore ICE, Starbucks and Microsoft partnered and created BAKK, a cryptocurrency trading exchange backed with Bitcoin, offering institutional investors and Bitcoin traders another option to invest in decentralized currencies and solutions. BAKK could go online this November, if the SEC approves their Bitcoin-future application. Another financial service provider in the name of Fidelity announced as well that they are willing to introduce their own cryptocurrency trading platform. All these gateways together will offer a wide range of investment options for big money investors like it has never been the case before and make the space in the long-term better accessible and safer for everyone.  

4. Governments & Blockchain

More and more states and governments are beginning to see the real value of Blockchain. Many governments are currently launching pilot projects and Blockchain initiatives to better understand the capabilities and reach of Blockchain applications. The city Zug in Switzerland, known for its Crypto Valley and hosting point of projects like Ethereum, has recently tested a blockchain-based e-voting system with the objective to implement it in the whole country. The results were “highly pleasing” as head of communication, Dieter Müller has stated in a statement for BlockSolution.  

As well the Georgian government has officially decided to move their land registry onto a private Bitcoin-based private Blockchain to ease and secure the administration process. Aditionally China is elaborating Blockchain-based solutions for its smart cities with the cryptocurrency Vechain as their main service provider. The UK have started a pilot project in July, tracking the meat of cattle slaughterhouses.  

singapore business district skyline during night
Singapore, one of the currently leading smart cities could soon run activities on a Blockchain

These are only a few of many different kinds of governmental-based Blockchain platforms and initiatives and is a clear indicator in what kind of direction governments are heading to. The continuing interest in Blockchain-based and decentralized solutions shows clearly that we are just at the tip of the iceberg. As soon the testing phase is completed, we can expect a massive run in adoption, especially from the governmental side.

A matter of Time

With these 4 key factors named above you should be able to better classify the current market situation. We want to state very clear that many cryptocurrencies, having experienced 70% losswill probably need some more time to fully recover. Nevertheless, it is essential to recognize that even though prices have massively dropped, the mainstream media is reporting in a negative manner, many famous persons in the like of Bill Gates and Warren Buffet are riding the wave of the shitstormnothing has really changed. In fact, everything is getting better. The continuing interest is there, from governments, as well as from private investors, big money is flowing into crypto to establish and build a better infrastructure for retail as for institutional investors. Moreover, clear regulation will make investments more credible and in the end saver for everyone. All these developments together are bringing us closer to the adoption phase, enabling the creation of real valueapart from the current prices, only grounded on speculation about future potential. Adoption must be the ultimate goal and is probably the only way to ensure positive long-term growth. According to the very positive developments within the Blockchain our thesis claims, that it seems just a matter of time as Bitcoin and his fellows regain the price strength of last year and will exceed old limits.

written by Ato Herzig

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