It’s nothing new for the value of cryptocurrency to flail wildly in an up or down trajectory. The premier cryptocurrency brand, Bitcoin, is no exception. When the Chinese government recently announced a ban on using and mining Bitcoin, the value of the cyber-coin plummeted 30% overnight (Yelp).
It’s this kind of volatility that makes a lot of investors nervous. How reliable is Bitcoin as an investment? What are the long-term outlooks for Bitcoin and all cryptocurrencies? Is this the financial instrument of the future or something so fraught with inherent difficulties it may never settle in as a mainstream form of money? One futurist and tech wizard believes that the future is bright for cryptocurrency. Activist investor Jason Hope points out that blockchain technology –- the basis for Bitcoin –- is still very much in its evolutionary stage. He said wild fluctuations in currencies that rely on the fundamentals of blockchain are just what we expect to see in the present climate. Jason Hope said several factors favor the future promise of cryptocurrency.
One is how it will facilitate eCommerce on a global scale. Not only is eCommerce emerging as the dominant form of retail worldwide, but Bitcoin offers the cheapest and easiest method for completing online transactions. For example, fees associated with using Bitcoin are generally less than 1%. Using a credit card for an online Bitcoin purchase averages 3-5% for each purchase. Jason Hope said another advantage for Bitcoin will be its ability to reduce online fraud to a bare minimum, if not eliminate it altogether. The reason is complex and has to do with the transparency of blockchain transactions –- they cannot be manipulated by third parties or faked. Thus, if Bitcoin can reach a greater level of stability, there may be no better instrument for conducting business online.