Short term, and even mid-term, I’d agree with the general premise of this article that claims regulations might be the biggest impediment to Bitcoin’s price continuing to rise. That being said, I believe the greatest long-term threat to Bitcoin, and really any blockchain-based technology, is the rise of patenting and copyrighting.
Still, I believe a lot of the efforts worldwide to curtail, monitor, and in some cases, prohibit the use of Bitcoin either as a currency or as an investment, is one of the major reasons the price is not, at present continuing to rise (though high transaction fees and long transfer times have been at least as much to blame as the rising threat of regulations).
Potential government interventions represent the principle threat to the widespread adoption of Bitcoin and cryptocurrencies, according to Coutts.
“Bitcoin fever is being called both an epochal step change that will positively transform the world of finance for ever and a speculative bubble that will inevitably end in tears,” said Lilian Chovin, investment strategist at Coutts.
“The volatility in Bitcoin’s value is representative of the conflict between these points of view.
“How well it provides advantages over these may well be the defining factor in whether Bitcoin is a good investment.”
The high profile volatility in cryptocurrency trading has brought a great deal of scrutiny from regulators and watchdogs around the world and, according to Chovin, that could out rank all of the other economic factors driving the market.