2018 Bitcoin Review: New Technology and Investments
Although Bitcoin’s meteoric late-2017 price has subsided and it’s not in the headlines every day, the core technology remains revolutionary. In fact, money is pouring into the cryptocurrency industry and major corporations are buying into blockchain.
Let’s see what’s been happening so far in 2018:
Corporations See The Value of Blockchain
Some of the world’s largest corporations are buying into the blockchain technology behind Bitcoin and other cryptocurrencies. Both Samsung and IBM, for example, have announced plans to invest in blockchain-based solutions for their businesses.
Coincheck Inc. — one of Japan’s biggest cryptocurrency exchange platforms — was just acquired by Monex Group. The Japanese financial services provider recently announced plans to acquire Coincheck Inc. for an estimated $33.5 million.
Other corporations are making more direct investments in cryptocurrencies themselves.
Yahoo Japan recently paid approximately $27 million to acquire 40% of Bitard — a Japanese cryptocurrency exchange that’s been licensed by Japanese financial regulators.
The CEO of Abra — a digital wallet platform app — believes major corporations investing in blockchain will increase public trust in crypto and provide a path forward for other blockchain solutions:
“Once institutional investment starts flowing into Bitcoin and Ethereum, it will create a “halo effect” that will positively influence and push other digital currencies to the forefront as well.”
Public trust is already beginning to grow, as Bitcoin ATMs have begun to pop up in public spaces across the United States. Coinsource — an American Bitcoin ATM Network — recently responded to demand by installing 20 brand new Bitcoin ATMs in Washington DC. Coinsource now has 200 Bitcoin ATMs operating in the United States.
Bitcoin ATMs open up new paths and opportunities for small-time investors, but a few notable big-name investors have gotten involved in cryptocurrencies as well. George Soros and the Rockefeller family have recently invested in various companies in the cryptocurrency industry.
Exploring the Price Drop
Much has been made of Bitcoin’s price drop from $19,000 in late 2017 to just over $8,000 in mid-April. Some experts have speculated that the rapid price increase in Oct-Dec. of 2017 drew thousands of speculative investors who, “got in primarily for the promise of cashing in at higher prices in the short term.” When viewed through a short-term lens, Bitcoin has dropped in value significantly. When we take a long-term look at the cryptocurrencies value, however, we see that Bitcoin is still up 800% in the past 12 months.
Other cryptocurrency experts suspect that the price dropped for tax reasons, and that people might re-invest now that tax season is over.
Most people who are serious about Bitcoin don’t pay attention to price fluctuations, however, and are more interested understanding and applying the revolutionary technology. It could be said that Bitcoin is ahead of its time — and that’s the conclusion that Barclays came to when it released its “Equity Gilt Study 2018”
The study found that crypto-technology may be “a solution still seeking a problem.” Most people don’t need to use a cryptocurrency when their country’s standard currency works just fine. While this issue may affect Bitcoin’s short-term value, it does suggest that Bitcoin will solve problems that may be further out on the horizon.
Looking Ahead: Positive Signs
If we look beyond the fluctuating Bitcoin prices, we see some positive signs. The lightning network is now live, and it will only improve as various lightning nodes help make Bitcoin more affordable and accessible. With the first lightning network wallet being available for download on Google Play, anyone who owns Bitcoin can already send and receive coins without dealing with high fees on every transaction.
It’s unclear whether government involvement in cryptocurrencies will be beneficial for Bitcoin, but there are some exciting possibilities for governments that choose to make use of blockchain technology.
Jacob Elisoff is the founder of cryptocurrency investment fund Calibrated Markets, and he told Mashable that he thinks governments could benefit from blockchain technology.
“In principle, there could be various benefits: the simple efficiency of instant global electronic transactions, preventing counterfeiting, better record-keeping and monitoring of transactions, no printing press, etc.”
We hope that’s what 22 European countries had in mind when they came together to form The European Blockchain Partnership.
According to the press release, the partnership, “Will be a vehicle for cooperation amongst Member States to exchange experience and expertise in technical and regulatory fields and prepare for the launch of EU-wide blockchain applications.”
Despite the fact that Bitcoin isn’t making headlines every day like it was in late 2017, there are still plenty of emerging investments and technological solutions. Here at Swytch, we anticipate this trend to continue as corporate leaders wrap their heads around the power of blockchain technology. If you’re interested in hearing more about Swytch and new uses for blockchain technology, feel free to join our Telegram channel!
