Is Bitcoin Poised For Success In 2015?
Bitcoin is coming off a turbulent year.
The cryptocurrency's value sunk below $350 per coin, a hefty increase from its beginnings around $10, but a far cry from its highs around $1,200.
Additionally, the currency was wracked with scandals, most notably the collapse of Tokyo's Mt. Gox exchange. Unstable prices -- and the public's hesitance to get on board -- have many expecting Bitcoin to fade away in the coming year. But enthusiasts disagree.
New Developments
In order to evaluate the success of Bitcoin, some say that price is only a small part of the equation.
While it's true the Mt. Gox scandal shed a negative light on the currency, 2014 also brought about several new developments that made the currency more user-friendly.
Related Link: Who Accepts Bitcoin?
Some cities around the globe installed “bitcoin ATMS,” where people can buy and sell the currency without an intermediary, making it more accessible. The adoption of the currency by big businesses also helped spur confidence in its stability.
Microsoft Corporation (NASDAQ: MSFT) was perhaps the largest company to announce that customers could use bitcoins to pay for some of its games and services, but others, like PayPal (NASDAQ: PYPL) and Virgin Galactic LLC, also decided to allow the currency.
With that in mind, many see 2015 as an exciting year for growth in bitcoin popularity. Some US states are working to regulate the use of bitcoins, something that will likely increase the public's confidence.
In New York, for example, lawmakers are working to create a “BitLicense” plan, which is designed to protect consumers.
A New Index
On January 5, BitMEX, a cryptocurrency exchange, is slated to unveil a 30-Day Bitcoin Historic Volatility Index. The index will calculate the currency's volatility based on a 30-day period, allowing traders to bet on the currency's uncertainty, rather than whether it will go up or down.
The new index suggests the bitcoin market is maturing, and it could give traders a new way to participate in the currency's growing popularity.
Image Credit: BTC Keychain, Flickr
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