by Graham Pierrepoint
Bitcoin’s rise to fame as inarguably the most popular and powerful cryptocurrency on the markets is hardly a joke – despite its humble beginnings some years ago, the data-mined money has grown to become one of the most valuable resources on the planet, with its worth having expanded to a high of $19,000 over Christmas. However, many experts – among them Warren Buffett – advised that the longevity of the Bitcoin craze could be short, and that a bubble effect was to be expected. This week, what’s been referred to as a ‘cryptocurrency bloodbath’ has taken place – meaning that, indeed, Bitcoin has haemorrhaged value in just a few days – and apparently, it could be set to continue.
Watch: Cryptocurrency market sees sharp decline ▶
The value of the currency has dropped by at least 40% in just a matter of weeks, signalling that the bubble may finally have burst – and with some financial quarters in South Korea making moves to ban cryptocurrency outright, it seems that resistance against moving currency into the digital sphere could be continuing as a result of its recent poor performance. Experts are claiming that Bitcoin still has a big drop ahead of it – particularly as it took on so much growth ahead of time – and with its value really hanging in the balance, it may be prudent for several markets to make good on banning the currency outright. This, of course, is huge news – very bad news indeed – for the thousands of people who have invested in the mining of Bitcoin and its contemporaries, as well as those who actively hold the currency in large amounts.
Watch: Bitcoin: the price of the volatile digital currency drops by nearly 50% since its peak in December ▶
Expert speculation advises that the growth of Bitcoin may have been triggered by a belief in the fact that it could succeed – rather than more grounded assumptions. This could mean that the cryptocurrency may struggle against long-standing money on the markets – and it might also mean that now is the time to sell if you are invested in the Bitcoin game to any degree whatsoever.
If you are steeped in Bitcoin and are worried, all is not lost – do consult the markets and financial advice wherever possible – but experts continue to warn that we are just approaching the epicenter of what could be a major bubble bursting. Keep close quarters on your finances and make moves to invest elsewhere if you are particularly concerned – but do keep your eye on the news otherwise:
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