The value of bitcoin decreased to around $6000 in the second week of the June 2018. However, since July 2017, the price of the cryptocurrency was increasing for six months. The substantial increase attracted many rich investors and brought many opportunities and attentions to the financial field. Conversely, the attention gained could possibly cause negative effects on long term development and technology development.
Many people buy bitcoin because it is a way to earn money quickly. This behaviour got attention from the world’s regulatory bodies, who worried about people purchasing Bitcoin because they have not found a way to classify digital currencies yet.
For the people who bought bitcoin at its highest price in history at last year, the recent prices has decreased in a scary way. Indeed, the value of bitcoin decreased 4.6% and it is down over 50% so far this year (do you mean before this year? Within this year?).
For comparison, the price of bitcoin was $750 around June 2016 and $2000 in June 2017; the value of the coin surged 1400% over six months in 2017.
The managing partner of Multicoin Capital states that this is a general downtrend in the first six months of 2018. He also added:
“A lot of people who bought at $9,000 in April are realizing that they’re not going to break even anytime soon, and are instead trying to get out.”
The return of realistic valuations for bitcoin might be a good thing in the long term for technology development. The investors who left from the downward trend could possibly be the people who truly believe in cryptocurrency. Those investors may become a main source of technology development.
Mcmahon, John. Is it a Bear Market or Just Back to Reality for Bitcoin. Retrieved June 14, 2018, from Newsbtc: https://www.newsbtc.com/2018/06/13/bear-market-just-back-reality-bitcoin/
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