Wednesday, January 31, 2018

Presidents Bloomberg and Goldman Sachs don't want to introduce bitcoin until the volatility is reduced

Image Source: FLICKR

Ever since the cryptocurrency market was introduced in 2008, the world has seen a massive change in the way people invested money. Bitcoin has potential to change the world, and that can be seen by its ever-increasing price, which recently touched $17’000 per coin in December 2017. The volatility of this coin is so high that within just one day, it fluctuates with a margin of $3000 up and down. For those who have been in this market for long enough, know that it will recover and go up, but for the new-comers, such shifts can be scary.

Its market volatility is not only dependent upon media frenzy but also the heavy demand and supply of the coin that dominates its price. The price of this coin started from a couple of cents in 2009, and those who bought thousands and hundreds of coins back then must be rolling in the cash right now. The way its price has gone up just within 2017, has made it so widely popular that popular economists, bankers and even investors have started comparing it with Gold.

The trust people have shown in the coin and bitcoin trading is so much that some of the investors also ‘sold’ off their gold only to invest in Bitcoin. Trusted resources such as Review are declining that speculations are that the coin will soon replace Gold, and become even more valuable and expensive than it. While it is based upon practically ‘nothing’ and its value is only created by the people, it doesn’t seem to be going down any soon. The volatility might be high, but those who have held on to this coin, trust it that much, to hold it even for the future. Nobody wants to sell the coin, but more, and more people every day want to buy it, and in such a scenario, the prices are bound to shoot up.

Image Source: FLICKR

But then, some investors and bankers say that Bitcoin currency is nothing but a bubble that will burst soon. It has been compared with Tulip Mania, which was introduced in the year 1600s, which is called the Dutch golden age, and the light or the bulb suddenly became so popular that people were willing to pay as high price for it as possible. It did make some people filthy rich, but later when it crashed, the scenario was that nobody wanted those Tulip shaped lights anymore, and the market collapsed on itself. This is a historical event, which is being compared to Bitcoin purchase fever because experts say that it has no underlying value. There is no commodity or asset behind Bitcoin that its value should be that high, it is only soaring in prices because of people ‘want’ it all of a sudden. And when people would stop ‘wanting’ it, it will come crashing down harder than Tulip Mania.

The future for Bitcoin and cryptocurrency is uncertain. If it has the potential to go up to a million dollar per coin in coming ten years, as some experts say, it has an equal chance of going back to zero. The chances are equal on both sides, and that is something that even the Bitcoin exchanges, the creators, and miners of cryptocurrency believe in, that its value is what people are ready to pay for it – nothing else.

Many other coins are emerging after Bitcoin now, and some of the popular names are – Ethereum, Dash, Litecoin, Ripple, Monero and even Bitcoin Cash, but Bitcoin’s popularity is unmatched because of the media attention it received. Being first in its game, its trust factor is higher than other coins, and being the oldest cryptocurrency, its price and Bitcoin value has skyrocketed only in 2017. It increased more than a thousand percent price, which was unbelievable.

This is the reason that President Bloomberg and Goldman Sachs do not want to introduce this currency at this point, as the volatility in the market is very high, and at this point, nobody can predict the behavior of the coin.

The future of cryptocurrency is uncertain, and it can go in either direction, and all we can do is wait and observe the trend.

Image Source: FLICKR

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