Over the last 12 months, top cryptocurrency Bitcoin (BTC) has suffered major setbacks in price actions and developmental stalls. The result of this has been reduced investment and interest in the crypto market.
With the mind lifting increase in the price of Bitcoin (BTC) and other cryptocurrencies in 2017, many investors thought that usage of digital currencies would be fully possible as well as more adoption. However, the Bank of International Settlements (BIS) in the new study has warned against such hope. According to the report, the future of crypto is quite insignificant. Furthermore, BIS has also warned investors and traders alike regarding the potential risk of investing in traditional digital currencies like Bitcoin(BTC).
Bitcoin (BTC) Price Today – BTC / USD
Rough 2018 for Bitcoin and Altcoins
A number of experts described the experience of Bitcoin (BTC) and other cryptocurrencies last year as “rough” with uneven journey, but it has also predicted 2019 to show a similar outcome.
Most countries regarded Bitcoin and other digital currencies as a shallow recess rather than a financial way forward. They do not share the same enthusiasm with other crypto proponents. BIS also disclosed that there hadn’t been any significant usage for digital currencies in domestic or internal payments recorded by the central bank. Therefore the usage of digital currency has been estimated to be very insignificant or appealing to a relatively small section of the population.
From the survey BIS’s stand towards crypto ideology is obvious. The BIS member central banks do not see an improved future for cryptocurrencies.
Usage and Adoption Could Trigger Next Bullish Price Movement for Bitcoin
Many have held their hopes high thinking that if Bitcoin (BTC)and altcoins become generally acceptable, there will be a rapid spike in the price of Bitcoin (BTC) once again even with the little percentage of people accepting digital currency as means of payment both locally and internationally. Reports have it that many Bitcoin (BTC) investors and traders are anticipating that the crypto winter will come to an end this year.
As per the survey conducted by the BIS, in which 63 central banks globally participated, it was found that most of these central banks have no plans to launch a digital version of their fiat currency, called the CBDCs (central bank-backed digital currencies).
Coming of Institutional Investors Reason Behind 2017 Bitcoin Rally
The epic bull run initiated by the Bitcoin (BTC) in 2017 (when prices exploded from just under $1,000 per BTC at the start of the year to a whopping $19, 000+ per BTC in just less than 12 months), has been attributed to the expectation of institutional investors gearing up to enter the crypto space.
As 2018 passed and investments from the established financial sector didn’t materialize, many BTC and altcoin holders bailed out, due to concerns about a looming threat of more stringent regulation and doubts swirling around the general adoption and wide usage of cryptocurrencies.
Generally, crypto adoption has been subject to major criticism in recent months following reports that investors and traders expected the surging price back in 2017 to mean that a raft of retailers and could begin accepting Bitcoin (BTC). However, there have been signals showing that the increased adoption and usage of Bitcoin (BTC) is around the corner.