¿Has the Bitcoin bubble finally exploded?

in bitcoin •  7 years ago 

Bitcoin prices fell sharply by more than 30%, generating turbulence in the cryptocurrency market.

After its value had approached $ 20,000 as recently as last Sunday, Bitcoin fell to less than $ 11,000 on Friday, losing a third of its value in just 24 hours, according to CoinDesk data. Later it recovered slightly to around $ 12,000 dollars, but that amount continues to fluctuate at the time of writing this note.

The steep decline came after a troublesome week for Bitcoin, in which an exchange of cryptocurrencies failed in South Korea after a cyberattack, which subsequently affected its price worldwide. The incident has raised questions about the reliability of digital currency markets, which are not regulated by governments or central banks.

However, and despite increased competition from other cryptocurrencies, Bitcoin remains the queen, at least for now, and some argue that it is only taking a break after a 2017 that exceeded all expectations, so its value could increase one more time

Recall that, at the beginning of 2017, a single Bitcoin cost just over $ 1,000 dollars; a very high price, actually, considering that its value was less than half of that amount the previous year. But that turned out to be only the beginning of the last increase in the value of the currency, with an explosive interest that sent it to new heights.

During the last months, the digital currency skyrocketed at a record value that exceeded $ 20,000 dollars. This rapid growth put Bitcoin in a position similar to that of some of the largest companies in the world. Although, of course, there is some controversy about comparing Bitcoin with traditional corporations, but one can not ignore how much the cryptocurrency has grown in recent years, even with the last decline in its value.

John Spallanzani, chief macro strategist at CFI Group wrote a few weeks ago in a Twitter message "Bitcoin continues to have a strong offer during Asian operations, as emerging market currencies are being sold to buy, which pushes us to overcome another milestone. " Now, the situation is certainly different.

Depending on who you ask, the status of Bitcoin as the most prominent cryptocurrency in the world was never in doubt. It has faced some previous challenges in 2017, especially in situations related to Bitcoin Cash, and the recent closing of the Bitcoin trade in China. But that seems to have made little dent in its growth, until what happened with its value this last time.

However, with so many problems this year with the currency, many wonder why this last bubble. Some publications believe that it could be the use of Bitcoin as a basis for what is known as Initial Coin Offerings (ICO), or the initial offer of new cryptocurrencies. Although buying a new currency with real-world money is not easy, the intrinsic ease of Bitcoin transfer means that it is a great provisional medium for transactions with new currencies. That is, buying Bitcoin to buy newer coins, only serves to increase its value.

With different cryptocurrencies now in use around the world, including, for example, a coin designed exclusively for dentistry, there is a large investment in Bitcoin as a secondary aspect of its ICO. Despite this, anyone who has seen the Bitcoin story will surely think that this current bubble will come to an end. Traditionally, the value of Bitcoin increased in the middle of a new interest, reaching new heights, then collapsing shortly thereafter as confidence disappeared, before gradually rising again.

Although it is never a guarantee, the ups and downs of value have become more predictable as time goes by, plus now you can count on an artificial intelligence tool that is able to inform you when the bubble will explode. However, you must be very careful if you invest in something as volatile as Bitcoin and inform yourself to avoid possible fraud related.

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

first as we all know bitcoin like most other alt coins isn't a bubble. but to answer your question on whether the correction will continue it as already started to rebound.