Kim Dotcom Predicts Cryptocurrency Ascent

[Len]

Kim Dotcom has long been one of the most notoriously fascinating figures in the world of internet business. The German-Finnish developer and activist has become famous both for his various business ventures and for periodically running afoul of the law. He's also a vocal proponent of new technology, and one of the latest areas of his interest is the cryptocurrency space.

According to the Merkle, one of Dotcom's latest ventures is called BitCache, and it's a service that will incorporate bitcoin, which he believes will continue to become more popular and practical as time goes on.

Dotcom Not Worried About Bitcoin Price

There has been a flurry of speculation about the price of bitcoin in recent weeks. After climbing to a fresh record of almost $5,000 per coin earlier in the summer, the cryptocurrency has dipped considerably.

As of this writing, it is trading for just over $4,000 per coin, and that's after gaining some over last week. The extreme volatility associated with the leading cryptocurrency is not a concern for Kim Dotcom, however, who wrote on Twitter that users should not be worried about the price. Because "hundreds of millions of new users" will soon be entering the space, at least in part because of his own BitCache venture, he says, "everybody will use crypto."

Dotcom's tweet gets at the heart of what some analysts feel is a barrier to the growing cryptocurrency trend: although popularity in the space is growing, bitcoin and other digital tokens are still niche markets. As relatively small markets on a global scale, the crypto market is susceptible to heavy fluctuations based on single bits of news, including China's recent announcement to disband bitcoin exchanges, which sent the market tumbling.

Could Dotcom Fuel the Bitcoin Fire?

Kim Dotcom hopes that his new launch will help bring bitcoin into the wider public eye (and wallet). In order for BitCache to be a success, though, it will have to successfully clear government scrutiny around the world.

The Merkle points to the fact that "some retailers have reneged on their bitcoin positions during the first half of 2017," saying that "there is a dire need for more companies and service providers that are willing to experiment with cryptocurrency payments." Dotcom's venture could fill that important space.

And yet, bitcoin and other cryptocurrencies have experienced bearish cycles during most years of their existence. Overall, 2017 has been an impressive year, but it was inevitable that a market correction would take place sooner or later. Dotcom's launch of BitCache, which is currently without a specific timeframe, may help to bring cryptocurrencies back into a growth trajectory.