Bitcoin’s Future ‘Is a Gamble,’ Says Quantzig

A study by pure-play analytics firm Quantzig said that Bitcoin investing is like gambling as it involves high risks.

Betting on the future of Bitcoin is like gambling,saidpure-play analytics solutions provider Quantzig in its latest article on the cryptocurrency.

With more than 1,500 digital currencies available in the market, Bitcoin is just one of the many projects that could hinder the development of blockchain’s future as it gets more challenging to predict which cryptocurrency will dominate the market moving forward, the article reads.

“The big question for investors here is whether the Bitcoin bubble has burst, or will the future of Bitcoin witness it is getting back on its feet with time?” the article said. It added, “Though the beginning of 2018 saw a skyrocketing trend in Bitcoin prices, it looks like this trend just got jinxed as the Bitcoin prices have fallen by two-thirds over the past couple of months.”

The researchers noted that the prices of Bitcoin have fallen by two-thirds over the last couple of months after the sudden surge at the beginning of this year. The scenario makes Bitcoin’s future unpredictable and highly risky for investors. They added that the cryptocurrency gained attention because of an earlier perception there is no centralized governing body to the technology and the ease of transaction.

However, the rising cost of transactions and the confusing stability of the digital currency coupled with the lack of comprehensive acceptance as a mode of transaction could have an impact on its future.

The researchers also noted the common fear among investors that the price of cryptocurrencies will spiral downward if governments start regulating the space. However, they noted Japan’s case where the government initiated digital currency rules in 2017, but still maintained the highest global Bitcoin trading volume.

They added the extensive use of Bitcoin in Japan is also another indication of a brighter future as more countries are expected to follow Tokyo's move.

Other than Japan, there are other nations, including the US and the UK where cryptocurrencies are accepted as a mode of payments. The future of Bitcoin will look better when it is accepted as an actual currency in retail outlets and online platforms. In addition, the market value of Bitcoin will escalate if the real-world usage of Bitcoin increases.