And if we look on the bright side, anything that rises as high and as fast as bitcoin did, must pull back.
Advertisement
“My conjecture is that cryptocurrency holders are trying to decide whether to abandon bitcoin, because its limitations mean it will be superseded by better products, or to bet that it can thrive despite them”. Bitcoin is now sold for $16,812 (CoinMarketCap).
LightInTheBox Holding, a US-listed Chinese online retail firm, opened a blockchain technology research lab to develop blockchain technology platforms and applications.
“The thing is, none of this matters right now”.
Bitcoin’s price has tumbled, falling by more than 25 per cent over the past seven days. For Bitcoin to rally through to $40,000 by the end of the year, Bitcoin’s issues will need to be addressed.
South Korean officials’ remarks have swayed the global markets for bitcoin and other crypto currencies in the past few weeks. Bitcoin is slowly reclaiming lost grounds.
The country has seen a huge bitcoin craze, with young and old betting on the crypto currency to build wealth.
Less than two weeks ago, the cryptocurrency market reached an all-time high above $830 billion, before fears that South Korea, China, and Russian Federation were all mulling crackdowns on mining and exchanges lead to a global sell off.
The dramatic and volatile trading came after South Korea indicated it was planning to ban bitcoin and other virtual currencies amid fears of fraudulent trading. Uncertainties in the two markets goes a long way in triggering a sell-off of companies with stakes in the space. For now, there is talk of some enhancements by the core development team that could provide some transaction speed improvements, but with Bitcoin’s competition far more favourable on speed and transaction fees, more is going to be needed.
“The latest price falls suggest that the bubble is bursting – although with prices still ten times higher than a year ago, they have a lot further to fall yet”, Capital Economics wrote.
Cryptocurrencies enjoyed a bumper year in 2017 as mainstream investors entered the market, and as an explosion in so-called initial coin offerings (ICOs) – digital, token-based fundraising rounds – drove demand. The banker also recommended that the government prevent businesses and individuals from providing services relating to cryptocurrencies.
The letter also expressed concerns about investor protection.
“You have to think of what the general trajectory is and the general trajectory is upward for cryptocurrencies and Bitcoin”, he said. While all cryptocurrencies experience instability the massive highs and lows of the last week were extraordinary.
Advertisement
We’d also like to remind our readers, that the SEC has been stepping in and suspending trading in several bitcoin-related stocks. We may even see some cryptocurrency-linked personal bankruptcies.
