IronX – The Rise and Fall of Bitcoin
IronX reports another blow to the cryptocurrency market following news that Bitcoin ETFs were rejected by the US Securities and Exchange Commission. Bitcoin prices may have fallen as a result of this decision but they rose again soon after. Despite this SEC setback, many maintain an optimistic outlook for the Bitcoin business. It has gained worldwide attention from investors thanks to its unique characteristics. It’s easily transferred, it’s used to buy products and services and it’s also an uncorrelated asset. It will be no surprise if SEC changes their minds, several investors assume.
There are many reasons that attribute to SEC’s decision to scrap Bitcoin ETFs such as security concerns. Cyber theft reports from all over the world have stained the reputation of cryptocurrencies – Asia in particular. IronX claims that digital coins worth over half a billion dollars were allegedly stolen over the years which has frightened several keen investors around the world. Cryptocurrencies also easily fall victim to sharp price fluctuations, making them highly volatile. Investors are also wary of Bitcoin anonymity. Cryptocurrencies are short of transparency which might explain why several investors (both individual and institutional) struggle to accept them.
IronX alleges that several leading banks worldwide such as Citigroup Inc. and IBM are testing blockchain-based applications and software. Platforms like LedgerConnect are enabling these institutions to access applications for services like KYC checks and collateral management. Banks aren’t the only industry taking advantage of Bitcoin. Many organizations are turning to data centers for crypto-mining so as to encourage renewable energy in a more cost-efficient manner, IronX reveals.
Renowned investor Bill Miller has stated that there are only 17 million BTC in the world as of now but the above improvements have led many to believe the demand for these virtual currencies is only going to rise.
Despite such ‘setbacks’, optimistic investors believe it won’t be long before Bitcoin is a widely accepted currency among regulators worldwide as well as for payment methods across all sectors.