The Big Crash 

Share the blog

Extreme crashes have almost become routine for Bitcoin and other cryptocurrency prices. Since its 2009 launch, Bitcoin’s price has tumbled more than 50% six times. However, the current drop in cryptocurrencies is being described as “a crypto ice age” by industry professionals. Many cryptocurrencies may not survive this storm. The idea that Bitcoin is similar to gold has also been debunked. Bitcoin seems to be also influenced by the ups and downs of inflation. 

China has also been very reluctant about any type of cryptocurrency. In fact, the Chinese government banned Bitcoin mining in July last year. The country also banned all cryptocurrency transactions last September and barred foreign crypto exchanges from operating within the country in 2018.  Bitcoin was at a record high of $68,000 in November last year now the price has tumbled to a new low of $17,958 this month, before recovering to over $20,000 this week.

Despite the sudden and frequent drops in crypto many investors are urging people to relax and stop looking at the graphs. During an interview with Forbes in January this year, the venture capitalist Tim Draper offered an ambitious prediction: Bitcoin would hit a whopping $250,000 within a year. While many others are still advising investors that Bitcoin’s recovery is a facade and that the price will continue to drop even further. According to the Chinese state-run newspaper Economic Daily “Bitcoin is nothing more than a string of digital codes, and its returns mainly come from buying low and selling high,”

Crypto investors need to keep in mind that Bitcoin may behave as any other market. Just because the price is down it does not mean the whole industry is dead. Rather it might be an opportunity to buy low. Whether Cryptocurrency is the future only time will tell, for now, keep buying low and selling high folks. 

Share the blog
Default image
Musa Qaiser
Articles: 32
Translate »