Bitcoin: The Current State of Affairs
Vinny Lingham, a voice of reason in the Bitcoin ecosystem, recently pointed out that Bitcoin is operating more as a speculation tool rather than a legitimate investment asset at this time. This statement comes at a precarious moment when the Bitcoin community finds itself at a stalemate, leading to concerns about the health of the entire cryptocurrency landscape.
What Makes Bitcoin Speculative?
As the co-founder of Gyft and CEO of CivicKey, Lingham has witnessed his fair share of ups and downs in the crypto world. He voiced his discontent over potential hard forks and insists that Bitcoin is currently speculative due to ongoing discord over scaling solutions.
“It is a speculative asset because of all the conflict around scaling. There is no clear path forward,” Lingham remarked. While he hopes for clarity, he admits the ongoing disputes make any sustainable investment difficult.
The Threshold of $1,300
According to Lingham, Bitcoin can only transition to a genuine investment asset when it sustainably surpasses the $1,300 mark. But with the current state of affairs, he isn’t putting his money on it happening anytime soon.
Soft Fork and SegWit
Lingham believes that for Bitcoin to cross that critical $1,300 threshold, it will require the adoption of SegWit (Segregated Witness). He foresees a soft fork as essential for Bitcoin to ascend to the next level as an investment class. “Actually, I’m not certain on the outcome. That’s just my sense and why it’s all speculative. Completely no explicit route ahead at this time,” he added.
Bitcoin Price Rollercoaster
Despite a promising start to 2017, Bitcoin experienced a significant drop, plummeting to around $920 in March. This fall prompted Lingham and other experts to caution the community about holding excessive Bitcoin. However, a glimmer of hope emerged over the last few weeks as Bitcoin made a fortune of around $1,200.
Altcoin Exodus to Bitcoin
When asked if Lingham was impressed by Bitcoin’s recovery, he had mixed feelings: “Yes and no. A lot of it is altcoin holders swapping their altcoins for BTC. ETH clearly moves inversely to BTC. This is a problem. ETH goes up, BTC goes down and vice versa.” In this seesaw effect, both currencies seem to dance around each other while Bitcoin struggles for its footing.
The Future: Finding a Solution
The battle over scaling continues without a clear resolution in sight. As the community splits over whether SegWit will emerge victorious or if a potential fork could echo the Ethereum split from last year, uncertainty looms over Bitcoin’s future. Will there be a peaceful resolution, or are we in for another raucous round of grappling over digital coins?
