Bitcoin dives below $10000 with a 50% decrease in value

Saturday, 20 Jan, 2018

On Wednesday, the price of bitcoin fell below the $10,000 threshold just after surging to an all-time high near $20,000 in mid-December. Bitcoin ended the year with a 15x increase in value.

However, several governments are still seeking ways to prevent bitcoin market volatility.

She further added that currencies like United States dollars would actually operate like cryptocurrencies as the blockchain technology would make them more affordable, efficient as well as faster in conducting transactions.

It is notoriously hard to be certain of what causes moves in Bitcoin's value - the asset has been much more volatile than most traditional currencies and commodities to date - but speculation that regulators may be about to restrict trade has been causing concern.

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.

The MVIS CryptoCompare Ripple Index, which covers the performance of a digital assets portfolio which invests in Ripple (XRP), a cryptocurrency developed by Ripple Labs, dropped 15 percent to $7,298 on Wednesday.

As I pointed out in my first op-ed on the bitcoin bubble, there is no "there" there in cryptocurrencies, with the possible exception of some initial coin offerings (ICOs).

Bitcoin dives below $10000 with a 50% decrease in value
Bitcoin dives below $10000 with a 50% decrease in value

Vladimir Putin said on Tuesday that "in broad terms, legislative regulation will be definitely required in future".

Unlike Bitcoin, Ripple is not created using proof-of-work or mining in datacenters using massive amounts of electricity. Well, some say not so much. "People are selling to try and get the hell out of there", said Charles Hayter, founder of Cryptocompare, which owns cryptocurrencies.

To be clear, I don't think the crypto crash we're witnessing right now is the beginning of the end of bitcoin.

When we go back to history, Bitcoin has managed to bounce back from corrections and break previous highs, it remains to be seen whether or not it will be the case this time. Bitcoin's price action over the last one month should offer vast solace to the fundamental investor who will be glad to see its price gravitating towards its true value.

You're told time after time, if you're going to lose sleep over it, it's not worth it.

This is a far-cry from traditional trading, as most people would have sold their stocks to cut their losses, but this is the world of cryptocurrency.

After around 48 hours in a pronounced downswing, during which the value of nearly all top-market-cap coins tumbled, the cryptocurrency markets are recovering quickly. These lower transaction costs has seen cryptocurrencies gain prominence as growing alternative for global transfers rather than the traditional and expensive method traditional banking offers. For many investors who are just learning the bitcoin basics, it feels like crypto "outlaws" are looking to rip off anyone to make a quick buck.