Bitcoin price crash: what you need to know
The Bitcoin price crash continued plummet, falling from the heady heights of $17,000 to below $6000. As of today, the yo-yo effect is strong, with a small recovery up to $7400. But where does Bitcoin go from here?
Casual investors will, of course, be hoping the answer to that question is “up”. But given the ever-volatile nature of cryptocurrencies, there aren’t any guarantees of that. Proponents of Bitcoins, blockchain technology and the revolution of digital money have argued that this dip still leaves Bitcoin in a stronger position than it was even in September 2017. And it can rise as quickly as it can fall.
The fall is undoubtedly linked to myriad influences, but many have cited the recent reports of increased regulation as a likely source. As a decentralised currency, the freedom of movement allows Bitcoin to be more flexible than tradition currencies. But with that comes inherent risk. Recent stories of successful hacks in North and South Korea, with money going missing from popular exchanges, haven’t provided solace for those questioning the safety of their investments.
It has become increasingly clear that the banks, financial regulators and credit institutions don’t trust cryptocurrencies, and this put was in no uncertain terms by Agustin Carstens, general manager of the BIS, who called cryptos “a bubble, a Ponzi scheme and an environmental disaster”.
He stated that cryptocurrencies such as bitcoin were “probably not sustainable as money”, according to Reuters. “There is a strong case for policy intervention,” he said, speaking at Frankfurt’s Goethe University. “These assets can raise concerns related to consumer and investor protection. Appropriate authorities have a duty to educate and protect investors and consumers, and need to be prepared to act.”
Elsewhere, Facebook banned advertising for cryptocurrencies and ICOs on it and any Facebook owned platform, while authorities in China have threatened to stop Bitcoin mining due to increased strains on resources.
The Bitcoin price crash seems to have paused for now and we are likely to see a return to a value of $10,000 in the near future but we’re likely to see significant volatility for months, if not years, to come.