The controversies of Bitcoin continue to arise as the market fluctuates, leaving traders and investors at the edge of their seat. While the market has seen a rise to $20,000 and back to $12,000 in as little as three months, there are still questions of where the market will turn to next. Technical indicators are unable to dictate patterns with this market, creating one of the controversies with traders and investors who are uncertain of whether they should take the risk on the cryptocurrencies.
The rise of Bitcoin first created controversy because of the technical implications behind the currency. With a peer to peer, decentralized network, many traders and investors became skeptical of whether the currency could hold to traditional currencies. The digital approach developed a strong disruption because of the newer approach to currency. Many traders and investors have bowed out of investments, specifically because of the complications of blockchain and a question of whether this technology will remain stable and scaleable.
Another issue which leads traders and investors to questions of the legitimacy of the currency is the definition of currencies. Traditional banks and government claim that currency must be issued by a central institution. Bitcoin breaks the tradition and challenges the system which currently exists, specifically because of the newer system and the ability to trade without issuance. Many traders and investors are left re-examining the concept of currency and whether this acts as a trade or if it will become a bubble of lost investments.
While there are certain risks that continue to arise with Bitcoin, there are also opposing viewpoints which take an optimistic view. Technical indicators also show that traders and investors are ready to introduce a new dimension to the stock market. The fast rise in the stock market last year shows that the currency may be here to stay. At the same time, many think this may be a bubble, specifically because it is quickly lowering. Despite the roller coaster of changes, Bitcoin has made an impact on the current currency system, showing an indication of possibilities for a digital currency future.
As cryptocurrencies continue to show implications of a diverse and decentralized future of the monetary system, there are also questions of what will take place. Bitcoin can’t be tracked with patterns or stabilization relating to the market. At the same time, there are questions of whether it is a currency, bubble or will bring a new formula of currencies to the market. Technical indicators show that there is a movement to a future which has diverse formulas of currencies.