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Cryptocurrency Hype

Bitcoin has been on a roller coaster ride in its price, its value reached as high as $20,000 in late 2017 to as low as $6,000 within a time frame of just six months. The highly volatile nature of Bitcoin is certainly a blotch on its reputation and certainly this could be why Goldman Sachs’ head of Global Investment Research, Steve Strongin holds the view that most cryptocurrencies ultimately will not survive in the long run and compares it to the dotcom bubble where only a few companies around that time survived. While Bitcoin’s volatile nature is a cause for concern, the fact that the cryptocurrency has never faced any issue concerning its security is noteworthy. The reported hacking incidents in Bitcoin exchanges, the place where the coins can be traded for assets, typically, fiat currencies was due to the lax security measures taken at these exchanges and is not a failure of Bitcoin’s technology. While Bitcoin is inherently built on a technology that is making great waves for its security features, Bitcoin exchanges are not set up the same way. Nevertheless, Bitcoin has grown in popularity and as a consequence, it has garnered significant interest for its underlying technology. Riding on Bitcoin’s fame, its technology, the Blockchain, is now creating a greater hype than Bitcoin itself.[1]

Blockchain technology is the only reason Bitcoin has been shot into the limelight. What made Bitcoin attractive was its decentralized feature, wherein, no single regulatory body can completely control it, making it a truly democratic currency. In addition, Blockchain set a new standard for transparency by removing the requirement of a third party in the transactions and bringing down the transaction fee to a minuscule amount. All these features together ultimately propelled a convincing

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