The exchange rate of bitcoin is like a seesaw: a rise is always followed by a fall… and this time it’s fallen below the psychological margin of $9,000. And despite the cryptocurrency still leading the capitalization and domination index, more and more often one hears rumors that the bitcoin “bubble” is going to burst any time now.
Roman Tkachuk, a senior analyst for Alpari financial company, explained to Sputnik France what factors can have a negative effect on the cryptocurrency or, on the contrary, reinvigorate its course.
“Right now, all over the world the screws are tightened regarding cryptocurrencies. It’s happening in many countries: Japan, [South] Korea and in the US. If the regulators tighten these screws completely, leaving no choice for crypto-investors and crypto-traders, then it is going to be very hard times for the cryptocurrencies,” he said.
However, even in this case, according to the expert, bitcoin still wouldn’t die.
“There is always a shadowy side that requires no regulation,” he said.
“If [using the cryptocurrency] is prosecuted, either by fines or criminal prosecution, then not too many people will use it and the exchange rate will fall to $1,000 or even lower. But bitcoin won’t disappear entirely.”
“If the regulators’ attitudes change, if some exchange will be allowed to trade bitcoins officially, the cryptocurrencies will find use in companies’ real economics and bitcoin will regain its losses very soon.”
“Besides, I do not exclude that after this subsidence, in a month or two, everything will change once more, and bitcoin will have its share of fanfare again,” he added.
However, bitcoin has many competitors in close competition with it. While Bitcoin’s potential for growth is not so big, the potential of its competitors (Ethereum, Ripple, Dash, Monero) is significantly higher, Tkachuk said.
“Bitcoin can grow tenfold max, but other currencies can grow hundreds of times and even more,” he added.