Having crashed about 82 percent from its peak, Bitcoin has been proclaimed a bubble and dead. However, the latest report, 2nd Global Crypto-Asset Benchmarking Study by the University of Cambridge, it’s greatly exaggerated as the expansion is just delayed and millions of users have entered the ecosystem.
Bitcoin becoming the Biggest Buying Opportunity of Year
Bitcoin has slipped down to $3,400, losing about 82 percent of its value since its all-time high. The last time, Bitcoin went this low has been in mid-September, 2017. Various experts and analysts are predicting more drop in prices, calling out a death spiral.
“Some people assume that if [death spiral] happens, then a lot of miners will say ‘okay, I’m not making enough profits anymore because the hash rate has dropped 50 percent, so I’m going to turn off my mining’ which then causes to drop even further, which causes it to get even slower, which causes to drop even further, drop slower, death spiral, difficulty never adjusts,” says Bitcoin advocate, Andreas Antonopoulos.
However, this is unrealistic as according to him, “miners have a much more long-term perspective.”
The current price drop is rather one of the biggest buy opportunity as per Weiss crypto Ratings that says,
“BTC is getting to such low levels that it’s becoming one of the best buying opportunities of the year. As a store of value, Bitcoin is here to stay. We truly think it’s the least speculative investment a person can make in crypto right now.”
Expansion Plans of Industry Participants just Delayed
The latest report titled, 2nd Global Crypto-Asset Benchmarking Study by the University of Cambridge, addresses the matter of Bitcoin and cryptos declared as a bubble (that has been made after every global ecosystem bubble) and dead which has been created by “collapse in prices, and subsequent media coverage of the losses borne by speculative investors in 2018.”
“The speculation of the death of the market and ecosystem has been greatly exaggerated, and so it seems likely that the future expansion plans of industry participants will, at most, be delayed.”
It further reveals few key findings that involve,
Total user accounts at service providers now exceed 139 million with at least 35 million identity-verified users, the latter growing nearly 4X in 2017, but most remains passive. Additionally, individuals constitute the largest share of the user base.
When it comes to mining, the majority of identified mining facilities use some share of renewable energy sources as part of their energy mix and mining is less concentrated than commonly perceived. China remains in the top-3 countries to host mining farms while the USA and Canada are seeing rapid growth.
As for the regulatory part, the report says self-regulatory efforts reflect growing industry maturity along with KYC/AML checks to ensure compliance.
The authors share a future outlook of the crypto asset that encompasses trend towards multi-coin support, innovations in trust-minimised off-chain payment networks, and scope for stablecoins whereas non-fungible tokens thought to have a limited impact in the coming year.