The future of bitcoin: from volatility to regulation with growth

For experts, the price fall will reverse as the currency becomes popular and regulated.



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Bitcoin has gained great popularity since the middle of last year. Its ease of obtaining and its high growth expectations have made it an attractive means of change. However, in recent months, the price of this cryptocurrency has dropped significantly, which could make us think that the fashion for virtual currency could end.

The price variation of this, and all cryptocurrencies, is determined by simple supply and demand. If there are fewer investors requesting its use, the price falls.

From the year of its creation, 2009, to March 2013, the value of bitcoin was less than US $ 100. Today, the price is between US $ 10,224 and US $ 11,696. These last figures may seem exorbitant, but they cease to be so if we compare them with the US $ 19,891 that cost in December 2017.

 The future of bitcoin

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A FINANCIAL FASHION

The Securities and Exchange Commission of the United States of America (SEC) announced on March 7 that all cryptocurrencies, including bitcoin, must be registered with the commission in order to regulate them and protect investors. On the other hand, entering the futures market caused the currency to have greater validity and acceptance as an investment asset, but greater volatility due to the possibility of betting against it.

For Pablo Boza, a financial researcher at ESAN University, the new financial stocks would not determine a fundamental value and, therefore, volatility would persist in the markets until the currency is consolidated. "It's a relatively new and unique asset, so the discovery of its price is a long process," he said.

TO THE LOW

The fall in the price of bitcoin at the end of February, after the announcement of South Korea and China about their intentions to prohibit the cryptocurrency trade, would not represent a long-term threat, since the currencies are distributed in several countries. that mitigates the risk, clarified Eric van Boxsom, analyst of Gosocket Latam.

He also said that the fall in the price will reverse in the medium term, this being the best time to invest in the digital currency.

If there is regulation, the price will not be altered by that fact. "The only thing international organizations can do is generate a history of the prices of currencies. In the next two or three years, the value will tend to rise, "said Van Boxsom.