Bitcoin’s Resilience Boosted by Global Adoption and Regulatory Challenges

The Unstoppable Rise of Bitcoin

Bitcoin has shown remarkable resilience and recovery in 2017, bouncing back from various government restrictions and market setbacks. The cryptocurrency has effectively demonstrated its strength, and experts believe this is just the beginning of an exciting journey.

Government Challenges as Blessings in Disguise

Alena Vranova, co-founder of SatoshiLabs and TREZOR, argues that the hurdles faced by Bitcoin merely serve as a catalyst for its resilience. She states,

“All those setbacks, hurdles and government restrictions are a blessing, making Bitcoin more resilient.”

In a historic moment for Bitcoin, the digital coin hit the $1000 mark for the second time in its brief existence, raising new expectations for the currency in 2017.

Two Powerhouse Factors Fueling Bitcoin’s Value

According to Simon Dixon, CEO of BnkToTheFuture.com, Bitcoin’s strength as a global store of value is surging, driven by two pivotal factors:

• The Blockchain Awareness: In 2016, many banks and financial institutions began to recognize the importance of blockchain technology, only to find that it’s Bitcoin’s proof of work that truly matters. This realization is steering them toward Bitcoin, leaving many blockchain applications in the dust.
• Government Subsidization: Dixon highlights that government restrictions on cash supplies are inadvertently pushing individuals towards Bitcoin. The increased friction in fiat money, rooted in anti-money laundering efforts, affects everyday transactions, compelling ordinary people to explore owning Bitcoin.

Bitcoin’s Breakout Year for New Users

Michael Vogel, CEO of Netcoins, describes 2017 as a breakout year for Bitcoin, particularly in terms of user adoption. Vogel comments that despite regulatory turbulence, such as certain Chinese exchanges suspending withdrawals, the enthusiasm for Bitcoin has never been higher.

“A large portion of our customer base continues to be new customers discovering Bitcoin for the first time,”

he notes, revealing that January marked a record month for traffic at their Virtual Bitcoin ATMs.

Continuous Growth Amidst Controversy

As new users flock to Bitcoin, Vogel observes that the upward trend in price is firmly tied to this increase in global participation. Even with negative press and uncertainty, Bitcoin trading volumes are on a steady rise, thus indicating a healthy and growing market. The data from leading Bitcoin exchanges underscores this trend, showing a promising trajectory over the past year.