Is bitcoin going to make a comeback

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Everyone is talking up bitcoin as cryptocurrencies go mainstream

The mere fact that Facebook has shown such interest in cryptocurencies is being viewed as validation for bitcoin and other forms of digital payments. The prices of leading rival cryptocurrencies to bitcoin, such as ethereum, litecoin and EOS have all rallied this year as well. So is the bitcoin comeback for real? Investors can be forgiven if they are more than a bit skeptical. Bitcoin and other cryprtos have staged monstrous rallies before -- only to have them quickly go poof.


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Read More. But the recent spike in bitcoin just might be legit this time.

There is mounting evidence that bitcoin adoption is growing rapidly. China is taking more steps to embrace bitcoin as well. Chinese president Xi Jinping recently made bullish comments about the blockchain technology that acts as a ledger for bitcoin transactions, calling blockchain an "important breakthrough.


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Meet the Facebook executive who wants you to trust him with your money. Nearly half of respondents in a recent survey said they thought bitcoin would be the best performing asset over the next 12 months, according to a poll of finance executives conducted by blockchain research firm Chainalysis in late September.

The Future of Bitcoin: 12 Scenarios From Bullish to Bearish

Only a third of those surveyed said stocks would be the top asset to own and a small minority said bonds or housing would outperform equities and bitcoin. Looming supply shock could lift bitcoin prices. Bitcoins are created by a complex process known as mining. Tesla shares on Monday suffered their biggest fall since Sept. Elon Musk was that spark. Clearly that situation couldn't continue. In those conditions, prices have to fall to shake out the over-optimistic borrowers and return borrowing rates to normal levels.

Bitcoin has been getting traction from mainstream investors, in part because of the perception that it's a store of value similar to gold.

Everyone is talking up bitcoin as cryptocurrencies go mainstream | Financial Post

Bullish investors claim the cryptocurrency can act as a hedge against rising inflation. But skeptics warn that bitcoin has no intrinsic value and is one of the biggest market bubbles in history. Analysts at JPMorgan last week said bitcoin was an " economic side show " and that crypto assets rank as the "poorest hedge" against significant declines in stocks.

Skip Navigation. Markets Pre-Markets U. Key Points. Treasury Secretary Janet Yellen called bitcoin "extremely inefficient" and warned about its use in illicit activity. In this article.