Digital currency has begun to take the place of physical or paper currencies as it can be used in a real-time manner and anywhere at any instant. It is an unregulated currency, unlike regular currency which is controlled by the government. Bitcoin was the first cryptocurrency launched in the market in 2009 by an anonymous group and till now only one name is known to us i.e. ‘Satoshi Nakamoto’ who is now considered as the founder of Bitcoin.
Consolidation in financial terms denotes the movement of currency prices in specific given patterns. It also states that if the currency is getting stronger i.e. holding a robust position in the market, consolidation is taken more appropriately in technical aspects – which Bitcoin have already proven by restructuring the existing business models. It has shown tremendous positive outcomes in a very short time-period. In fact, consolidation achieved is considered at the level when the rise or low in the prices hold for some time and the currency moves smoothly within the particular range.
With Bitcoin consolidation, it means that there are no more price fluctuations for at least some time-period. Consolidation is not an easy thing to achieve because it largely depends on the external factors such as government rules and regulations, supply and demand. Also, in the era of digitalization, it is not a surprising fact that digital currency is growing at a rapid rate. Some experts have predicted that the virtual assets will reach $40,000 by the end of the year 2018. Bitcoin is not leaving its upward trend because of its worldwide demand which is also the reason it is continually moving in that direction.
Bitcoin nowadays is seen consolidating near 12,000 according to the Coin Market Cap. But the government institutions showed a congenial attitude towards cryptocurrency which again gave it a rise in the upward direction. Some countries have shown interest in the new technology and loosened their laws and regulations regarding cryptocurrencies. Still, there are some countries such as South Korea who recently stated that they are going to put an absolute ban on cryptocurrencies. But the government reconsidered its decision after seeing the positive feelings of investors towards bitcoin.
In fact, bitcoin is being traded with prices over of $8,000USD for the past few months. And, now its’ patterns appear to be moving towards the forward direction breaking the resistance to key trend lines. It is expected that the price of Bitcoin will soon be much higher.
The co-founder of Ethereum, ‘Vitalik Buterin’ has mentioned that there will be a crash in few months in the cryptocurrency market after which all the cryptocurrencies will gain consolidation.
There have been instances when Bitcoin is seen to be consolidating but the changing external environment and the internal aspects are putting great impacts on the cryptocurrency. When the block size limit issue came up, its prices started falling and when Ethers were stolen by hackers through DAO attacks people also got suspicious about all cryptocurrencies on the market.
Bitcoin’s consolidation will take some time, but it is assured that it could be the future of the world’s economy.