April 7th, 2018
Bitcoin was making headlines everywhere during 2017, but in 2018 things seem to be going south. There are concerns among digital currency users around the world relating to the regulatory “crackdown” on the digital currency market. South Korean news has recently reported that the Finance Minister is suggesting the government will be introducing measures to cut down the irrational cryptocurrency investment craze. Since this news broke out, the value of Bitcoin has dropped dramatically. Digital currency users are already aware of its volatile nature, something that makes Bitcoin tough to predict. If you are investing on Bitcoins you need to be accustomed to the rise and fall of Bitcoin price, it’s a common feature of this digital currency.
By the end of 2017, Bitcoin’s value had broken all previous record, now however, the price is continuing to drop each day. Experts believe it is mainly because of the hardline taken by the South Korean authorities. Add to it the mounting speculation of China imposing restrictions on Bitcoin trading and you’ll see a trend in the price drop of Bitcoin. Both of these countries are trying by any means possible to introduce legislation which would prohibit businesses and individuals from providing cryptocurrency related services.
Last year, Chinese authorities started taking initiative to close the cryptocurrency exchange operation on the mainland, a move which created a huge impact in the market and resulted in a loss of around 35%. However, the market started recovering and eventually by the end of the year moved to an all-time high. But again a great deal of financial damage inflicted created concerns among millions of digital currency users around the world. By now you have seen that Bitcoin’s price drop is nothing new and if you are investing in it, try to stay positive.
Recent Bitcoin volatility has driven regulatory concerns among users around the world. Many authorities are feeling that the momentum behind the cryptocurrency craze will swiftly reach a stage where monetary authorities can’t control. Therefore such situations of near panic will always be there with this particular digital currency, something every user needs toget used to. New contracts have helped this digital currency to bloom and last December saw many future contracts. This has created an extra dimension to the digital currency space.
The latest collapse has left Bitcoins lower by a huge margin from the record high of around USD 19,876.60 in December of 2017. Last year, Bitcoin price was making news all over the globe, tempting new users to invest in this new digital currency. Seeing the trend, investors expected its value to increase, but Bitcoin is proving why it’s such a tough investment. Who would have thought that the price would have plunged so quickly? However, experts believe that this collapse was coming and by the end of 2018 Bitcoin price will be back on track.
This is one reason why Bitcoin investment is similar to gambling. Investors can make a huge sum of money in quickly, while in the same turn lose everything.The volatility of Bitcoin could easily place individual’s savings at risk, so be careful when you are investing. However, in South Korea, an organized petition is submitted to prevent the government from a digital currency crackdown. This petition is reported to have the signature of more than 200,000 citizens and they are claiming that government is stealing their dreams of accumulating wealth. The outcome of this petition may create an impact on the price of Bitcoin and even help it recover from the collapse.
The recent Bitcoin collapse is just part of its nature and because of this, no investor should worry. It’s only a matter of time before Bitcoin will get back on track.