What is the impact of the bursting of the Bitcoin bubble (Can Bitcoin escape the fate of the “bubble’s bubble”)?
What is the impact of the bursting of the Bitcoin bubble? Why does the value of
What is the impact of the bursting of the Bitcoin bubble? Why does the value of Bitcoin decrease with price fluctuations and maintain this trend over the past ten years?
From 2013 to early 2015, when investors began to pay attention to the cryptocurrency market, they discovered that Bitcoin carried certain risks. At that time, Bitcoin was still at a high price, and many people became interested in this emerging asset class; however, in the following years, there was a crash due to factors such as central banks’ quantitative easing and economic downturn. These events made many people believe that this situation might continue.
So, the question is, “Do you think digital currencies are speculative investments?” or “Are they financial products?” Actually, the answer definitely does not exist, but one thing is very clear: if people buy a novel and unrestricted product, it will become a widely accepted investment. So many investors are now asking, “What do you want to buy?” or “Is Bitcoin really suitable as an investment?”. However, there is no reason to answer these questions. For example, someone raised a question: do you think Bitcoin can be used for purposes such as payment, remittance, or even as a commodity? I don’t know, but I do know that some of its functions will play a role in future use…… In short, no matter what kind of technological applications, they cannot replace Bitcoin. Therefore, we need to consider the current market conditions and the current situation.
Can Bitcoin escape the fate of the “bubble’s bubble”?
According to Bitcoin News, in the past two years, the price of Bitcoin has fallen sharply. However, as people continue to pay attention to its price trend and conduct in-depth research and analysis, Bitcoin may soon usher in a new peak in the bull market. According to data from Messari, a cryptocurrency market data platform, at the beginning of this year, the price of Bitcoin was only about $50,000 per coin, but it has grown more than ten times in the following months, reaching nearly $30,000. However, since November 2017, this number has remained the same. Nevertheless, this seems to indicate that the “bubble” has not yet ended. Although many people believe that Bitcoin will soar to new historical highs again by the end of this year. However, can the “bubble’s bubble” really escape? The answer is yes! Bitcoin is currently in a “crazy market cycle”. Compared with the stock index in 2018, the current bear market makes investors more cautious. However, Bitcoin’s performance is far superior to other investment categories. Therefore, when asked why it does not have the high returns like gold, most analysts believe it is because their volatility is smaller. In fact, this situation does not exist due to high-risk investment strategies; instead, they choose to purchase assets at a lower or higher cost to maintain profits.
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