There are plenty of people who argue that the bear market that has plagued Bitcoin throughout this year is nothing more than a temporary problem–John McAfee blamed Bitcoin’s downfall on “artificial” pressures; others claim that this decline is nothing more than a maturation, a normal part of the lifecycle of any asset.
However, perhaps it’s not a coincidence that most of the people who see the light at the end of Bitcoin’s tunnel are widely known to be hodlers themselves–and of course, it’s foolish to buy medicine from a sick man.
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For as many analysts and other figures in the financial community that claim that Bitcoin is going back up, there are just as many who see Bitcoin heading down with no sign of substantial recovery. Could there be any validity to what these Bitcoin bears are claiming?
The Mining Calamity
Perhaps one of the biggest threats to Bitcoin is the failure of the industry that runs the network. New Bitcoins are created through a process called “mining”, wherein expensive computers solve incredibly complex mathematical equations in order to confirm transactions and add them to the blockchain (a public ledger.) In exchange for their work as miners, these computers (and their owners) get rewarded with Bitcoins.
If Bitcoin goes to zero, does that mean shorters get infinite BTC? ? https://t.co/gVdn0VTl6z
— Rhett Creighton (@HeyRhett) November 25, 2018
There has been a widespread belief that the Bitcoin markets are subject to widespread market manipulation from the very beginning–”whales,” or individuals that hold a lot of BTC, have been accused of throwing their weight around in order to profit off of panic. While there is no definite proof that this has ever taken place, there is still reason to believe that it might have happened.
The Future is Unclear
There’s no telling what the reality of Bitcoin will be in 2019. These perspectives seem grim, but Finance Magnates reported just yesterday on individuals who believe that Bitcoin’s best days are yet to come.
If you’re not a professional analyst, though, the old adage might provide a source of wisdom here: hope for the best, but expect the worst.
What are your thoughts on where Bitcoin is headed next year? Leave a comment below. We’d love to hear from you.
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