FUD at Davos: Bitcoin Price Holds Steady as Debate Over Future Grows
Bitcoin’s price continued to stabilize on Wednesday, as a lack of trading catalysts kept the bulls and the bears at bay. A debate over bitcoin’s future raged on at Davos, Switzerland midweek, offering some interesting perspectives about bitcoin’s long-term future.
Price Holds Steady
The bitcoin price has traded within a narrow range in the last 24 hours, extending a period of relative calm that began on Monday. The BTC/USD price averaged $3,616.19 for a gain of 0.8%, according to CoinMarketCap.
On individual exchanges, bitcoin’s price fluctuated from a low of $3,583 on HitBTC to a high of $3,664 on Bitfinex.
Bitcoin’s daily trade volumes have picked up in the last 24 hours, climbing above $5.2 billion on virtual currency exchanges. Volumes have risen substantially in the last month, reflecting a large increase in circulation. As Hacked previously noted, the circulating supply of bitcoin has been on the rise since October.
Technical indicators presented by Bloomberg on Tuesday suggest bitcoin’s price is not only stabilizing, but could be gearing up for a short-term rally. As Olga Kharif notes, the GTI Global Strength Technical Indicator for bitcoin has reached 35.6, putting it just above oversold levels. As bitcoin stabilizes above $3,500, clear support is found in the $3,000-$3,100 range, according to the GTI measure.
Bitcoin Debate at Davos
A panel discussion hosted by CNBC in Davos, Switzerland on Wednesday offered some unique perspectives about the future of bitcoin and cryptocurrencies. Jeff Schumacher, founder of corporate investment firm BCG Digital Ventures, said bitcoin will likely fall to zero.
“I do believe it will go to zero. I think it’s a great technology but I don’t believe it’s a currency. It’s not based on anything,” he said, according to CNBC.
Schumacher didn’t elaborate much further on his view but did highlight the growth of “open decentralized systems” as a means of leveraging blockchain technology to create more viable payment platforms.
Co-panelist Glenn Hutchins, who serves as Chairman to North Island, said bitcoin’s future role may be as a store of value rather than a transactional instrument.
“It might be that the role of bitcoin in the system could be to bring value back, to hold your value there while you have tokens that have other use cases that you aren’t using at the moment,” he said.
The panel, which included Ripple CEO Brad Garlinghouse and 500 Startups Partner Edith Yeung, talked about the role of blockchain technology in shaping the future. In Yeung’s observation, blockchain adoption is happening faster in Asia than any other part of the world. This is due to the fact that many of these locales lack traditional payment infrastructure, which allows blockchain-based systems to be adopted much quicker.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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