Bitcoin is Dead. BTC CRASH! The Bitcoin bubble has burst. These and other even more hysteric posts and articles are flooding the Internet today. Bitcoin has suffered another poor week as the cryptocurrency’s prices fell significantly again, from $10,889 to $5,900, starting fears the digital gold could be dead. However, how low will bitcoin go?
Why Bitcoin dropped
Bitcoin faced a dramatic loss of nearly $50billion from its market capitalisation amid January this year in one of its worst-performing months. Furthermore, bitcoin dropped 11 percent yesterday to its most minimal rate since November as a Facebook prohibition on digital currency adverts and an expanding crackdown scared speculators.
A month back Bitfinex was subpoenaed by US regulatory agency – the Commodity Futures Trading Commission however news did not leak until Tuesday. Then, Financial specialists and traders started new wave of media noise.
In another hit to bitcoin Indian fund minster Arun Jaitley utilized his speech to pummel digital currencies as he swore his conservative BJP government will do everything to stop the utilization of bitcoin and other digital currencies in the nation. Arun Jailey says: “The government does not recognise cryptocurrency as legal tender or coin and will take all measures to eliminate the use of these cryptoassets in financing illegitimate activities or as part of the payments system”.
When Bitcoin Will Recover
No bitcoin isn’t dead. We saw a greater crash in 2014. For long term bitcoin investors this is a piece of the adventure. For individuals who are newbies to the Crypto Market it will badly hurt.
Recent rates have been down to speculation. We will not know know the true value of bitcoin till its used more in day to day finance. The bitcoin community will hold their funds through out this, weak hands and speculators with for sure leave. Bitcoin is for sure not dead. This is just the start in its long story. Its still the first truly global decentralized currency billionth capitalization.
In fact, according to the News and so called Financial specialists, Bitcoin has been dead about 250 times up to this date. But if we take a look at its rates history on a big scale, then we will see that the whole picture.
This is just another correction that happens every single time after every insane rise of BTC price. We have seen drops before. We know that bitcoin rises every year and all these swings then are just the points on the constantly rising graphics. More likely during these huge drops the whales are entering the market and acquire crypto for the reasonable prices. Then, the price goes up again. And yet, another reason why we face the price fall, is January. This month is usually a dead period for many business around the globe. People simply have a rest and spend their vacations. January and the correction are just the normal things to the market. Of course, normally the fall gives way yo growth. This can take up to 5-6 month and another price peak will occur on the end of 2018.
Even if Bitcoin Crashes, the Crypto will rise
Bitcoin and all its economics history reminds us the Dot-com bubble. Both Bitcoin and Dot-com have so much in common. Insane prices, hype, media overdose and one-day kings. Dot-com was a bubble. But the death of Dot-com gave us Amazon and the Modern Internet. One day BTC will lose its influence and power. But by that day, we will be already leveraging the blockchain technologies, the decentralized economics world-wide and some new even stronger coins. Bubbles give us brilliant things. We must learn how to use them, and all those who learnt the technology on its earliest stages, will rule the industry tomorrow.