Is Bitcoin manipulated? Let’s explore Bitcoin’s value speculation and whether it harms adoption.
In this section, we’ll answer questions to why Bitcoin seems manipulated, but more importantly why this should be a reason for you to stay away.
Some early adopters have large numbers of bitcoins because they took risks and invested time and resources in an unproven technology that was hardly used by anyone and that was much harder to secure properly. Many early adopters spent large numbers of bitcoins quite a few times before they became valuable or bought only small amounts and didn’t make huge gains.
There is no guarantee that the price of a bitcoin will increase or drop. This is very similar to investing in an early startup that can either gain value through its usefulness and popularity, or just never break through. Bitcoin is still in its infancy, and it has been designed with a very long-term view; it is hard to imagine how it could be less biased towards early adopters, and today’s users may or may not be the early adopters of tomorrow.
Often described as, “This is a chicken and egg situation”, (which came first?).
Price dips and bear markets have come to cause fear and panic for those newly invested in Bitcoins technology. However, these repeated factors may also be the reason an industry and market move forward.
For bitcoin’s price to stabilize, a large-scale economy needs to develop with more businesses and users adopting it.
Fortunately, volatility does not affect the main benefits of Bitcoin as a payment system to transfer money from point A to point B. It’s also possible for businesses to convert bitcoin payments to their local currency instantly, allowing them to profit from the advantages of Bitcoin without subjecting to price fluctuations.
Since Bitcoin offers many useful benefits to businesses and unbanked individuals, many will continue to use Bitcoin. As more users seek a stable market, price volatility will become more limited with Bitcoin’s maturity, incentives, and technological improvements.
There isn’t a market traded globally including money, which doesn’t carry some form of manipulation. From corporate gatekeepers to middle-men operators, the centralization of a market for financially wealthy operators, makes this too easily executable.
With the low market capitalization of bitcoin under 1 trillion globally, today, this means any investor or corporation with enough capital can significantly change/manipulate the rate and any given moment.
Over the years however, we’ve seen the volatility of bitcoin lessen thanks to better implemented safeguards and regulations.
Remember, manipulators have no way of changing the core principles which Bitcoin is based upon. Although many will try to find ways to cheat the system in the short term, over time Bitcoin should overcome these manipulations.
That can happen, ever heard of Altcoins?
For now, Bitcoin remains by far the most popular decentralized virtual currency, but there can be no guarantee it will retain.
Alternative currencies already show significant technological improvements and adoption amount users, which is required for a new currency to overthrow Bitcoin.
Still alternative currencies are inspired by Bitcoin, but in a volatile and unpredictable market today, anything is possible.
Bitcoin itself, however, also can and most likely will, adopt greater improvements allowing it to compete as a dominate currency for a long time.
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