Bitcoin has been widely speculated as the next big thing in currency, or as a failed experiment that is nearing its end. However, that changed in the last few days, when it experienced a resurgence – one so strong, that it is at par with the price of gold!
Bitcoin has experienced its ups and downs, but worryingly, a 20% fall!
Or, one leading bitcoin exchange, Mt Gox, losing confidence and shutting down.
Part of the resurgence is attributed to changing political climate worldwide. The removal of bank notes in India, and the economic turmoil in Venezuela may have driven a spike. But, whether it continues to grow, remains to be seen. Some analysts say even if it did, it won’t matter.
In the grand scale of things, the contribution Bitcoin makes to the economy, is but a drop in the ocean. Further, its future could be adversely impacted by the rise of Chinese companies that seem to have taken control of the market.
Through astute investments, and foresight, 70% of the transactions are now handled through four Chinese companies. With such volumes, these companies have veto rights, and alarmingly, could trigger a centralization of policies. And, this could impact the very foundation of a decentralized, independent currency.
The next year should be interesting.