Bitcoin remains the most popular cryptocurrency until now. But lately he seems to be going through a tough time. Indeed, the price of Bitcoin fell below $40,000 on January 22. It lost 5% of its value in one day. This drop comes precisely after the approval of the first series of spot Bitcoin ETFs by the SEC.
Bitcoin Outlook: Criticism and skepticism are rife!
The approval of Bitcoin ETFs has inevitably turned the crypto industry upside down. Some consider it a sign of the growing maturity of the crypto market. Others are firmly convinced that it would lead to increased volatility and price manipulation.
Notable individuals and organizations (like JPMorgan Chase CEO Jamie Dimon and Vanguard) have expressed skepticism about Bitcoin’s prospects.
“Bitcoin is not backed by tangible assets. It is too volatile to be a viable investment,” they declared.
An expert from ARK Invest dispels doubts
Despite these criticisms, ARK Invest successfully defends the fair value of Bitcoin. “Bitcoin is backed by the most powerful computer network in the world. With a staggering 500 exahashes per second, the network exceeds the computing capabilities of even the world’s largest computer systems., explain Yassine Elmandjra
Decentralization is another essential feature of Bitcoin. It means that the network is not controlled by a single entity, but by a network of computers distributed around the world. This gives Bitcoin unique resilience and security.
It is difficult to control such a large and complex network. If a government decided to ban Bitcoin, for example, the Bitcoin network would continue to exist. Users could continue to use it.
Likewise, fears that Bitcoin is controlled by its creator Satoshi Nakamoto are unfounded. Elmandjra explains that Bitcoin source code is public. So everyone can see it and modify it.
YES ! The price of Bitcoin is likely to remain volatile in the short term. However, the intrinsic value of Bitcoin remains intact. Crypto is backed by a powerful and decentralized computer network, which gives it unique value.
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