As with many new products on the global market, the era of making quick money off of cryptocurrencies like Bitcoin seems to be coming to a close.
There has been many motivational rags-to-riches stories coming out the world of cryptocurrencies, but as the years have come and gone, it is no longer seen as the get-rich-quick scheme many thought it was.
Why the sudden change in speed?
The reason for this is manyfold; many cryptocurrencies have tried to establish themselves in the market but have failed. Even giants like Bitcoin have drastically plummeted from the once soaring heights of almost $20,000 per unit in December 2017 to under $6,000 just six weeks later.
Along this this drop in value are also the increasing costs of mining Bitcoin to be taken into consideration.
As was covered yesterday, the rising costs have to do with the equations needed to be solved by miners becoming more complex, and thus requiring more processing power and electricity, as the amount of Bitcoins continue to close in on the total limit for what can be in circulation.
What does the change in speed mean?
This means that hobby miners will be among the first to go, as mining for Bitcoins and other cryptocurrencies is simply no longer sustainable – although this largely depends on where in the world one is located.
For many of the once-confident Bitcoin traders, who thought they were just a few trades away from becoming millionaires set for life, this means having to rethink the abilities they were once to confident in – and their future strategy.
The many sceptics who are still around (as can be seen on the many forums discussing the various cryptocurrencies) are probably rubbing their hands together with glee, as they feel justified in the scepticism
However, the market in general seems to have matured, and cryptocurrencies are now becoming one of the many assets that can be traded on the international market.
What does the future look like?
This shift in attitude means that many more serious players have entered the market; those who early on viewed cryptocurrencies as a volatile asset, and potentially just a fad that would eventually blow over, have now started to take it seriously.
What this means, in general, is that the many day-traders of Bitcoin (and other cryptocurrencies) are on their way out, and on their way in are all the investors looking to play the long game – just like they do with other assets like oil and gold.
What this also means, however, is that it is now time for regulators to seriously think about stepping in – if they haven’t done so already, like in South Korea.
It is a new era for Bitcoin and its many crypto-cousins indeed. The market has matured, the players in it have changed in nature, and the future is (as always) uncertain.
What do you think 2018 (and beyond) holds in store for the cryptocurrency market? Do you think it will become like any other market, or do you think it will retain some of its volatile, and exciting, nature?
Leave your thoughts in the comments below!