Some countries and government agencies are taking a hard look at Bitcoin and saying “this has to stop”. Countries like China have already stepped up their regulations on the crypto-currency. They believe that it is being used for manipulative purposes and for illegal activity. There are plans in the work in China to block off domestic access to Bitcoin platforms that allow for centralized trading according to reports from CNBC.
This is all scary news for the true blue believers in Bitcoin. Asia is the most significant market for Bitcoin, and if it falls by the wayside, then there is no telling what will happen to all of the rest of the crypto-currency world. There very well could be a run on the bank so to speak when it comes to Bitcoin. People may start to unload it in massive quantities, and when that happens no one knows where the price will settle down at.
Bitcoin fell below $12,000 for the first time since December 5th, 2017. That was significant because it had been on such a rapid upward trajectory in recent days. To see it once again plummeting has only reignited fears that this currency really isn’t all that it is cracked up to be.
Plenty of Wall Street titans could tell you that they had seen this coming from a mile away. Greats like Warren Buffet have stated that they believe that the crypto-currency craze is at a bit of a mania stage at this point. They do not believe that the price levels that we have seen with it recently are anything that is sustainable. As a matter of fact, they are forecasting that these prices will eventually drop from these incredibly high levels that we see today.
The problem for many is that Bitcoin is not really backed by anything. There are no central governments or banks that back up the value of the currency. It is also not tied to any particular commodity or good. Therefore, the value of Bitcoin is basically just what people believe that it is worth. If that faith starts to disappear, then so will the value of Bitcoin.
They say that it is never a good idea to grab a falling knife when it comes to investing. If one is following that principle, then it might not be a great idea to grab hold of Bitcoin at this very moment.