It appears that bitcoin’s (BTC) value is on a rollercoaster ride. The digital currency’s share price rose to its record-breaking high of $19,346 last year. A few months later, BTC plummeted to $5,967 and lost over 69% peak value. The value has been shaky for a while now. It soars each month and plunges in the same breath.
Bitcoin (BTC) Price Today – BTC / USD
Why is BTC volatile?
Bitcoin is a currency, but it is traded as a commodity. Currently, there is a limited supply of this digital currency and lots of investors and customers demand for it. The market forces are responsible for setting the share price of bitcoin just like gold.
Why is the crypto market going down?
- Bad Press: public perception of the currency is affected by headlines of crashes as well as negative statements by financial institutions questioning the validity of the currency. One example of this effect is the event in 2017 where the CEO of JP Morgan threatened to fire any worker that invests in bitcoin in his investment bank. The digital currency suffered a 6% loss in value immediately.
- Inadequate security: for bitcoin to gain stability, merchants, and consumers need a safe spot to store funds. Sadly, security issues are affecting the trust as well as bitcoin use. Some notable events happened last year when two exchanges were robbed of their funds. Cyber thieves have also stolen lots of money from crypto exchanges.
- Stringent government regulation: bitcoin is decentralized and has not central authority regulating it. This allows users to avoid regular payment processes. It is attractive to lots of users because it means zero inflation or the central It also attracts cyber thieves who love stealing without leaving a digital footprint. Governments have refused to adopt the currency because financial institutions and banks are concerned about its ability to promote laundering or commit crimes. Earlier this year, the finance minister of India said cryptocurrencies would not be recognized as a legal tender by the country. It will also discourage the adoption because of the widespread use in different illegal activities. Also, facebook requires crypto and bitcoin advertisers to pass through a stringent approval process. It also banned ads for initial coin offering.
- Delay in the ruling of bitcoin ETF by SEC: experts also believe that the approval of this fund could cause BTC value to skyrocket. The application was previously rejected due to the volatility of the digital currency. The delay has affected other cryptos as well, not just BTC.
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If you ask me right now: My response will be:
Bitcoin will either die in the next years or come back to a new high.
That´s why I do not put more efforts into it.
Maybe I will buy some BTCs and try to lower my average purchase price after that big sell off.
But thats it. I do not read any news anymore or jump into discussions on bitcointalk or things like that.
Thanks
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You don't think the cost of production has anything to do with it? The hash power is declining, which is causing the difficulty to decline. Lower difficulty means it is cheaper to solve a block. This means current BTC holders can sell their Bitcoin and mine it back at a lower cost of production. Either miners are going to come back into the market and stabilize the hash power, or else I can't see how this doesn't result in bitcoins being worth pennies.
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https://steemit.com/bitcoin/@worldfinances/crypto-market-fell-should-we-be-surprised
I am quite surprised! I quickly visited coinmarketcap.com to ascertain this and I was like, seriously? The last time I check the price of Bitcoin prior to the fall, it was at $7,000+, but it's around $3,000 presently. However, in my best opinion, I think it will go right back up even beyond our imaginations. Though the market is a fluctuating one, it is pretty much interesting.
deberian de aplicar el costo del BTC por el valor del $