After a bad correction, Bitcoin is making a comeback. The “currency of the people” has increased by more than 1.5% over the past few days, surpassing $ 9,000. This corresponds to a 50% rise from its recent lows, which is an encouraging sign for Bitcoin’s “bulls.”
Will the digital coin ever reach and exceed its old high? Some experts think it will do it, since three things are good for Bitcoin. The first thing is Bitcoin’s highest acceptance rates as a means of storing value and average trading, two common functions between conventional currencies.
This, moreover, will require a better security infrastructure. “Assuming that Bitcoin will be used as a value-for-money in the future (ie digital gold), more secure infrastructures will be needed to cover the entire ecosystem of cryptosmodes in order for the world to trust the new financial instrument and start using it” , says Christian Ferri, President and CEO of BlockStar. “As soon as this happens, more people will be on the train, so an infrastructure that can be expanded is critical.”
Improved infrastructure security will help Bitcoin to improve its performance as a means of preserving value but not its function as a trading tool. What will improve the second? Upgrade to the protocol that will stabilize Bitcoin’s daily value. “If there are changes to the protocol that will return to Bitcoin as a means of daily transactions (eg paying your coffee with Bitcoin), we will need a stability mechanism, so your coffee will not cost $ 5 today and 50 dollars tomorrow, “adds Ferri.
The second thing that could help Bitcoin reach new highs is the influx of institutional money into the index funds of cryptos.
“The influx of money from organizations that will put money into index funds of cryptos will create a cataract, will attract a herd,” says Paul A. Taylor, Executive President of the Fabric Foundation. Darren Marble of CrowdfundX agrees. “At this stage, institutional investors hold the key to Bitcoin’s growth,” Marble said. “Concerns about liquidity, security, counterparty risk and asset management have so far prevented institutional investors from buying Bitcoin on decentralized exchanges,” he explains.
In order to change this situation, a number of regulated stock exchanges must be mobilized.
The third thing that can work favorably for Bitcoin is the multiplication of ETFs associated with crypto-threading. “ETFs of cryptosmodels can allow for simpler trading through stock accounts, which would in turn help raise Bitcoin and other cachet prices,” says Chris Kline, co-founder and operations manager of BitcoinIRA.com. “The signs are visible: with such a great deal of dynamics surrounding Bitcoin and other digital coins, it is, in my opinion, a matter of time to re-raise prices.”