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This Isn’t the End of Bitcoin

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People tend to focus on very short time-horizons in the cryotocurrency world. This can work in the favor of cryptocurrencies when they’re rising, but can also harm them when they’re falling. This is the current case, where many people have lost sight of the bigger picture in cryptocurrencies due to the recent weakness in Bitcoin and the market in general. The truth of the matter is there are many positive developments coming for cryptocurrencies, and the current pullback is nothing more than a typical correction in a market.

Bitcoin Weakness is only Temporary

There’s several things we’ve learned over the past several years in the cryptocurrency markets. One is that they can be very volatile. Another is that they can bounce back very quickly and strongly. Even with the steep decline seen in the past three months the price of Bitcoin is more than 350% higher than it was at this time last year. You’ll have a very tough time finding a better performing asset, even in the midst of a 9-year old bull run in the stock markets.

This cycle of gains and drops in markets is normal, and if history tells us anything it is that as bad as this dip seems, the eventual rally will be even more spectacular. Of course people are concerned right now, but if you take a step back and look at the bigger picture you’ll see that the market will get through this, and those who have patience will be amply rewarded in the coming months and years.

This is especially true for those who feel that dips in the price of Bitcoin are a buying opportunity. These speculators are getting Bitcoin now at prices that would have been considered a bargain last year during the rally in cryptocurrencies. Once prices turn higher once more there will be some very wealthy cryptocurrency investors minted. This is how financial markets have worked since the beginning of time. Lower prices drive many away from the markets, brave investors step in to buy at the bargain prices, and riches are made as markets recover and move to new all-time highs.

Bitcoin and cryptocurrencies are no different. While it’s true that some cryptocurrencies will fail, just as some companies fail, the major coins aren’t likely to be going away anytime soon, and since Bitcoin is the granddaddy of all cryptocurrencies it will remain in the spotlight for a long time to come.

The Fuel for Higher Bitcoin Prices

While the market is taking a break, there are some major technical developments coming that will spark a new leg higher for Bitcoin and its peers. One of these technical drivers is SegWit, with adoption levels increasing steadily since its introduction. This will make Bitcoin transactions cheaper and faster, leading to greater growth for the network. It may seem slow now, but in the long term this is a very positive development for Bitcoin and the cryptocurrency market as a whole.

SegWit isn’t the only positive development either. The Lightening Network remains just over the horizon, and its release is nearer every day. This innovative scaling solution is sure to shake things up in the cryptocurrency world when it eventually goes live.

In the meantime other sidechain projects are making progress. Projects such as Rootstock, Drivechain, Liquid and others will unlock more features on the blockchain, and should provide upside price movement as well.

The addition of smart contracts, increased liquidity and privacy, and faster less expensive transactions are all positive developments for Bitcoin, and are very near to fruition. All will provide improvements that are sure to attract new capital to Bitcoin and cryptocurrencies in general. They could even provide just what was needed to bring cryptocurrencies into mainstream payment processing adoption, making the cryptocurrency markets worth trillions of dollars.

I understand that it can be painful for investors during a market correction, but having the foresight to look beyond and into the promising future will almost certainly bring unimaginable profits to those willing to take the longer view.

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