Home Bitcoin Bitcoin Falls By Another Seven Percent, Now Below $10,000

Bitcoin Falls By Another Seven Percent, Now Below $10,000

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Bitcoin has had a rough and rocky start to 2018. While it was the darling of 2017 (in particular right at the end of the year), it has not been able to get its footing going into this new year. As of the time of this writing, the currency has seen another seven percent point drop in value during trading today. There does not appear to be a particular reason for the move other than possible concerns about South Korea regulated the currency more heavily.

There has been plenty of speculation about what South Korea intends to do about possibly regulating Bitcoin, and there are plenty of good reasons for traders in the cryptocurrency to be concerned about it. South Korea is a huge market for Bitcoin trading, and if they start to stem things off with the trading of this currency, then there is no telling what their next steps might be.

Others are saying that while the regulation concerns are playing a factor, they are not the biggest driver of the decline. They claim that Bitcoin has always been a bubble, and now it is just a bubble that is starting to burst. They say that it should have been obvious to people well before now that this was bound to happen.

Those who put themselves in this camp will say that there is no reason that such a high valuation should have gone to something that does not have the backing of any government. They say that speculating in it is about taking on pure risk.

Backers of the currency say that not having the backing of a central government is one of the key benefits of Bitcoin. They believe that allowing the currency to be anonymous and free-flowing is what makes it appealing to so many investors.

Finally, there is some concern that new futures markets in Bitcoin were at least part of what drove the price of it so high in the first place. Some savvy investors bought futures contracts on Bitcoin only to then turn around and purchase the currency itself. It is said that they artificially drove up demand so as to profit on their futures contracts. If true, they may have sucked whatever value was present from the contracts right now, and the remainder of people still investing in Bitcoin may be doing little but holding the empty bag of promises and hype.

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