Based on new data, a sudden shift in the cryptocurrency market can be seen. It looks like the price of bitcoin stopped falling, and began rising once again. The current price of bitcoin stands around $3533 at the time of writing.
The rapid changes in the bitcoin’s price simply indicate how chaotic cryptocurrencies can be. Investors are constantly trying to find out the causes of such twists in the price. Even though Bitcoin has had a lot of trouble in the last two years, with a number of ups and downs along with two market crashes, it still continues to be the top digital currency.
It has been predicted that in the year 2019. Bitcoin will regain the market dominance that it once had. Based on predictions in an A.T. Kearney report, Bitcoin will take over more than ⅔ of the cryptocurrency market cap. This is because altcoins are constantly losing their luster.
This, however, does not really mean that all the altcoins will perish away. Some of these will grow up and survive in order to become highly explosive cryptocurrencies. Those altcoins that carry no real value will simply vaporize away.
The predicted rise of bitcoin once again could indicate a big comeback! During the next recession, bitcoin is expected to rise again because there is a finite amount of it available.
Simply put, a $100 bill would be nothing other than a piece of paper if there is no one to assign any value to it. Paper money is easy to destroy and print in case there are no central banks. When a recession occurs, one way to combat it is to print more money which inflates the currency. However, this simply does not happen to the Bitcoin. This is apparently because there are only a limited amount (21 million) bitcoins available. None of these can be inflated, duplicated, or replicated. The only way for the price of bitcoin to change is if its demand goes down, or up.
After 2008, many people are hesitant to trust fiat currencies. And making use of digital currencies is a wonderful way to bypass inflation in modern times.
A great number of people invest in the Bitcoin considering a recession. This is because, during such a time period, the price of Bitcoin will rise dramatically. Keeping this in mind, we can predict that during the next economic downfall, Bitcoin will have a steep rise in its price and hence, make a comeback again.
Moreover, today, a greater number of people know about the Bitcoin than they ever did. In fact, Bitcoin is nothing other than a household name in the world of cryptocurrencies.
Since it is expected to dominate the market more by more than two-thirds, its comeback would simply trigger the development of new cryptocurrencies and ICOs.
Based on speculation, it looks like there is an inverse relationship between the US Dollar and the Bitcoin. So in the case of a recession as in 2008, there will be an inversely equivalent rise in the value of Bitcoin.