by After record-breaking highs, Bitcoin has dropped by over 21% on Friday. Bitcoin has plummeted under the $14 000 mark and might still continue to drop.
According to Bloomsberg News, Bitcoin dropped as low as:
“$12,191.80 before trading at $12,601.75 as of 3:29 p.m. in Hong Kong.”
Investors previously warned that this ‘bubble’ might burst. Is this the sign of a deflating Bitcoin bubble or will it make a come back?
Bitcoin Bites Back
Bitcoin has traveled a bumpy road up until now. At the beginning of this year, it was trading at $1 000. About a month ago, it peaked to a whopping $19 511.
Since then, it has had its ups and downs, with China banning the trading of cryptocurrencies within their country. During this time, the cryptocurrency dropped by $3 000, however it increased again a few days later.
Some people have put millions into the currency and have watched their money bloom, while others believe that it is way too risky.
“The cryptocurrency is fraud. It’s just not a real thing, eventually it will be closed,” explained JPMorgan Chase CEO Jamie Dimon.
Like Dimon, former Fortress hedge fund manager, Michael Novogratz expressed his worries about the online currency.
“To be fair, this is a bubble and there’s a lot of fraud mixed in. We look at tons of projects. And some get funded, and they literally look like Ponzi’s. There’s a lot of froth and fraud in something that’s exciting as this.”
So Is It Worth It?
Bitcoin is purely a gamble so it depends on whether or not you are willing to take the risk. No one knows what could happen from here on out.
Since its existence, Bitcoin has become more like a betting game rather than an actual currency worth any value. People are so consumed in betting how much the price is going to rise, that they aren’t actually making money from the Coin itself.
According to an article by the Guardian, Bitcoin has been compared to other ‘trends’ that have, in fact, burst because they have had no intrinsic value.
“Economists have compared bitcoin’s meteoric rise with past bubbles, such as the tulip mania of the 17th century and the dotcom bubble that began in the late 90s with the Nasdaq index in New York and burst in 2000. “
Whether or not Bitcoin is actually going to turn out like other trends is still unknown, however, investing in cryptocurrencies could be dangerous.
