Now that the year 2015 is in the books, Bitcoin enthusiasts and investors are looking ahead to what 2016 will bring for the digital currency. The past twelve months saw a record amount of VC funding flowing to various Bitcoin companies and startups, despite the not always positive news about Bitcoin. Will 2016 be the year of digital currency, or will the entire ecosystem be undermined by a certain type of user?
Also read: Finding The Right Bank Partner In The FinTech or Bitcoin Industry
The Bears Versus Bulls Game Will Continue
When one has been involved in the Bitcoin space for a certain amount of time, the terms “bull” and “bear” will come across the screen at some point. Both groups represent people who want Bitcoin to either succeed or utterly fail. Given Bitcoin’s price volatility the bears and bulls duke it out on a regular basis while making tons of money in the process.
Unfortunately for Bitcoin enthusiasts, the bears don’t need to do all that much before something negative in the digital currency world takes place. In recent months, various Bitcoin startups have moved out of New York – or even shut down completely – as a direct result of BitLicense regulation. While many people feel regulation can bring more legitimacy to Bitcoin in general, the proposed measure didn’t sit well with the community.
Also, there are still no “killer apps” for Bitcoin available to the general public just yet. Solutions such as Plutus will allow users to spend Bitcoin at any NFC-enabled payment terminal in the world but the application is not available for download yet. It should be released at some point during 2016 though, and investors will be keeping a close eye on the progress.
Plus, there is always the valid argument of not having a compelling reason to start using Bitcoin as either a consumer or business. For most people, Bitcoin is not addressing an issue they are worried about, even though everyone can feel the effects of the 2007 financial crisis. But there are some strong selling points for Bitcoin as well, even though they are often ignored by mainstream media.
Unlike previous years, Bitcoin has been far more stable regarding the price. That is to say, the price has been relatively flat for most of the year and an increase was notable during the final quarter of the year. However, there were no more 20-30% price swings like what was experienced throughout 2013 and 2014, which can be seen as an indicator of the maturity of this popular digital currency.
Blockchain seems to be the buzzword these days, as both companies and consumers are using this term rather than coining the term Bitcoin. It has to be said, however, that the blockchain holds a lot of potential for technology in the future, which will eventually lead to Bitcoin adoption as well [or so experts hope].
Tentative Conclusion For 2016 Right Now
There is no denying the year 2016 will be a defining one for both Bitcoin and the blockchain. All elements are pointing towards a successful year for Bitcoin as a currency, although it is still too early to make a final prediction. If the price stability continues, more investors will flock to Bitcoin as the chances of a more valuable price point us on the horizon.
At the same time, the amount of funds invested by VC’s last year will have to start paying dividends as well. Assuming all of the venture capitalists are right, big things are bound to happen in the Bitcoin and blockchain space throughout 2016 and 2017. There are exciting times ahead to say the least.
What are your thoughts on Bitcoin and blockchain in 2016? Let us know in the comments below!
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