Bitcoin below 40k$: Leaders divided between optimism and skepticism

Bitcoin remains to this day the most coveted cryptocurrency. However, lately, it seems to be going through a rough patch. Indeed, the price of Bitcoin fell below $40,000 on January 22nd. It lost 5% of its value in a single day. This drop comes right after the SEC’s approval of the first series of Bitcoin spot ETFs.

#Bitcoin declines by 19% post-#ETF launch, facing selling pressure from #FTX bankruptcy estate and Grayscale outflows.#BlackRock and #Fidelity Bitcoin funds attract $1.2 billion inflow, but challenges persist with weak conditions.https://t.co/VVJ4VyXONZ

— Coinpedia (@CoinpediaNews) January 23, 2024

Bitcoin Outlook: Criticism and Skepticism Abound!

The ETF approval has undoubtedly shaken up the crypto industry. Some see it as a sign of the maturing crypto market. Others are firmly convinced it will lead to increased volatility and price manipulation.

Notable figures and organizations (like Jamie Dimon, CEO of JPMorgan Chase, and Vanguard) have expressed their skepticism about the prospects of Bitcoin.

“Bitcoin is not backed by tangible assets. It is too volatile to be a viable investment,” they stated.

An ARK Invest Expert Clears Up Doubts

Despite the criticism, ARK Invest successfully defends Bitcoin’s intrinsic value. “Bitcoin is supported by the world’s strongest computer network. With a staggering 500 exahashes per second, the network’s computing capacity exceeds even the largest global computer systems,” explains Yassine Elmandjra

Decentralization is another key feature of Bitcoin. It means that the network isn’t controlled by a single entity, but by a distributed network of computers worldwide. This confers Bitcoin with unique resilience and security.

It’s hard to control such a vast and complex network. If a government decided to ban Bitcoin, for example, the Bitcoin network would continue to exist. Users could continue to use it.

Similarly, the fear that Bitcoin could be controlled by its creator, Satoshi Nakamoto, is unfounded. Elmandjra explains that Bitcoin’s source code is public. Everyone can see and modify it.

YES! The price of Bitcoin is likely to remain volatile in the short term. However, Bitcoin’s intrinsic value remains intact. The crypto is underpinned by a strong and decentralized computing network, giving it a unique value.