Bitcoin is down over 15% from its recent highs and has lost nearly $18 billion in market value since it last traded above $8,000 on April 26. The cryptocurrency has been under attack for weeks now. Despite Bitcoin’s massive price plunge, some analysts still believe that the currency will continue to rise due to its potential as an investment vehicle.
Other top financial figures like JPMorgan Chase CEO Jamie Dimon and Bank of America Merrill Lynch CEO Michael Corbat were critical of Bitcoin when their firms issued statements cautioning against investing in cryptocurrencies this spring due to their volatility and potential for fraud. However, these institutions appear to have changed their tune following recent events involving BTC prices; many analysts believe these executives are now more likely than not convinced that cryptocurrencies can be treated like stocks rather than things without value, such as collectible art pieces or baseball cards. Read more about the bitcoin blog at this link.
What is Bitcoin?
Bitcoin is a digital currency created in 2009 by an unknown programmer or group of programmers going by the name “Satoshi Nakamoto.” Any government or central bank does not control it, and its value fluctuates according to how much people are willing to pay.
Each bitcoin is divisible to eight decimal places called satoshis (pronounced “sat-oh-she”). Each bitcoin has its unique address that can only be used once; once you send bitcoins from one wallet address to another, they’re gone forever.
The future of cryptocurrency is looking uncertain.
The value of cryptocurrencies has been downward for the past several months, and the trend seems to continue. Cryptocurrency prices have fallen by about 50% since last year, and there is no sign that this trend will change shortly.
Some experts believe this is simply an inevitable consequence of the market being flooded with new currencies that are not backed by any underlying assets. The problem with this argument is that it does not consider how much money people are willing to pay for cryptocurrencies in general. People will likely continue buying them even if their value drops sharply because they still have utility value to store online without having to deal with banks or credit cards.
Bitcoins price is plummeting.
You may have heard that there is a drop in the price of Bitcoin. It is true, but what caused it and why?
The currency has been losing value for months now, but this time around, it seems to have broken through the $3,000 mark.
Some people are saying that if bitcoin does not survive this crisis, then cryptocurrency will be dead, which means no more investment opportunities for investors who bought into cryptocurrencies like Bitcoin at their peak prices back when everyone was excited about it. This can’t happen because if people don’t invest, there won’t be any more money coming into the market.
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What has caused its value to drop so suddenly?
Bitcoin’s value has dropped by more than half in just a few days. The reason for this is unclear, but there are several possible reasons:
Bitcoin has been a haven currency during times of uncertainty and geopolitical turmoil. It was the first cryptocurrency listed on major stock exchanges (the Nasdaq and NYSE) instead of being traded peer-to-peer like most other cryptocurrencies are today. If you want to invest in bitcoin without buying it directly from someone or exchanging cash for bitcoins yourself, you can simply buy it through an exchange like Coinbase or Bitfinex.
Bitcoin has been volatile in past years due to market manipulation by large corporations such as Goldman Sachs, who were involved with trading activities on Wall Street during this period, which led up towards 2008 when financial markets collapsed worldwide due primarily due these activities alone despite having no underlying economic fundamentals behind them whatsoever; but even though they didn’t cause any lasting damage because none existed beforehand either.
With the value of the cryptocurrency dropping by more than $1,000 in just a few days, bitcoin is now trading at its lowest level in almost two years. Since its peak in December 2017, Bitcoin has lost about 75% of its value. But even if you’re not invested in bitcoin specifically, you should still be careful about your investment strategy. Suppose you’re investing in any highly volatile asset. In that case, you need to make sure that you’re diversifying your portfolio as much as possible—and even then, there are still ways that an investment can go south quickly.