Is the Bitcoin bubble going to burst?
Team Veye | 21-Jan-2018
Crypto currencies are very volatile in nature and Bitcoin being the first one to be launched seems to have grabbed all the limelight but there are lots of other crypto currencies that are being traded across the market. Some of the other popular one’s include Ethereum, Stellar, Ripple, Litecoin, Dash & Monero. These cryptocurrencies operate on a decentralised peer-to-peer network, without central authority or government backing. You can pay bitcoin to someone else and there's no bank to go through to make that transaction, just a peer-to-peer networked program on your computer.
The Bitcoin which was launched at a price of a few cents in 2009 has been the investors favourite and it saw a consistent increase in its price and was at an all-time high of US$ 25,000 in Dec 2017 before plummeting well below US$ 11,000 in recently. Amid rumours and news around the ban on crypto currencies by various countries, investors started selling it off in a jiffy that made it unstable resulting in a very sharp dip in its price during the last few days. Some investors who boarded the Bitcoin boat initially have made millions while it has hit the recent one’s really hard. But majority of the investors are unfazed by this price crash and truly believe that it will recover shortly and start moving north again.
Investors says that given the volatile nature of the bitcoin, they have seen such sharp dips several time during the year and they consider this as an opportunity to buy cheaper stock. China, which has already banned cryptocurrency, has urged its banks to "enhance their daily monitoring" to completely eliminate the trading. France and Germany's finance ministers have agreed to launch a joint crackdown on the cryptocurrency markets as countries begin to push back against the bitcoin boom. It is likely that the other countries would follow soon.
With so much going on, it’s difficult to predict whether the Bitcoin bubble will finally burst. We are also keeping an eye on these developments like anyone else and it would be very interesting to see the outcome.
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