Is The bitcoin Price Bubble Coming?
In the April 2020 issue of the New York Times there was an article titled “The bitcoin Price Puzzle,” written by economics editor Dean Baker. In this piece he explained why the price of bitcoins has been so volatile over recent months and years. The reason is that there are now lots of people that have bought into this virtual currency, but also lots of potential investors that haven’t even heard of it. This lack of knowledge prevents the price from going down to earth and from becoming a reality. It will take some time for the bitcoins to be accepted across the world, but according to Dean Baker they are very well on their way.
As of right now the future for the bitcoin price is not quite set in stone. If you think about it if the digital currency were to gain momentum and become popular there would be huge opportunities for entrepreneurs. Many companies would start to accept and transact this form of currency. But just the same, when the world thinks about the future for the bitcoin price they are probably not thinking about 2020.
In fact if you do a little bit of research you will find that there are some very big announcements coming out right now with regard to the use of bitcoins as legal tender. This means that it will probably be very hard for the currency to gain traction because people are not even aware that it is taking place. In the fall of 2020 the price dropped to a record low of around three hundred dollars. At that point it dropped further to around two hundred dollars, and then later it went on to increase by more than fifty percent before settling back in the eighty percent range.
Then in July of 2020 the government decided that they would be able to regulate activities on the bitcoin network. Regulating the trade in this virtual currency was considered to be inevitable. According to the law they will need to determine who can process transactions on the system. In July the government decided that anyone who wishes to conduct business on the system needs to be licensed. In August, they released their own guidelines for doing this. These guidelines will be used to determine who can participate on the system and how they can participate on the system.
The most recent guidelines released state that you will need to have a permission code in order to spend money on the bitcoin network. Basically this means that anyone is able to spend money, but they will need to have a special code in order to do so. While this may sound great to many people it is important to realize that a significant portion of the population will not be comfortable having their identity publicly revealed. There will be a limited amount of people using the bitcoin transaction log so they will need to have a unique code that only they and other authorized parties will have.
In late February of 2020 the bitcoin price was valued at around five hundred dollars. In the following months it has increased to over one thousand dollars. It has been estimated that in the next four to five months the value will reach ten thousand dollars. As time progresses more businesses and individuals will begin to use the bitcoin currency rather than traditional currencies.
The developers of the bitcoin project will be releasing an open source software called XTREME. This software is not intended for general public use, however. It will be available to the developers and people who have a license to use it for a fee known as the “bitcoinium”.
Some of the characteristics of other currencies are similar to the characteristics of bitcoins. An example would be gold and silver. In the past the two currencies have been compared to each other. The gold standard was used to back up the dollar, which was used as a reserve currency during wars. During the last ten years the two types of currencies have become widely accepted all over the world.