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Bitcoin, the cryptographic currency, is experiencing a decline in value and for some it is not about to stop. Valoris currently $ 3,852, bitcoin is very far from its financial upturn of 2017 which earned him a massive attraction to investors. In fact, at the beginning of 2017, this cryptographic currency was rated at $ 1,000. A few months later and more precisely in May 2017, the value of this currency is spent 2000 dollars. In the month of August, the $ 4,000 mark was crossed and in October, the virtual currency reached 5,000 and 6,000 dollars. Although the growth index of bitcoin compared to its original value was already high, it was far from suspecting that the coming months would be even more interesting for this currency. In November of 2017, the value of the cryptographic currency has risen to $ 8,000 and $ 10,000. in mid-December 2017, the bitcoin course broke all records by reaching the value of $ 20,000.
This exceptional growth in the year 2017 has had the effect of attracting many people who have sometimes invested considerable financial resources in order to take advantage of the gains that this currency could bring. It should be noted that many projects have flourished in the same period with the opportunity to invest in these projects based on Bitcoin technology to reap later profits when these projects will bear fruit.
However, the rise in bitcoin mark in 2017 could not have stalled the year 2018 and in February 2018, ie 2 months after reaching the peak of $ 20,000, the value of the currency began to show signs of slowing. From $ 20,000 in December 2017, we spent $ 6,000 in February 2018. This decline continued in the following months and currently the value of bitcoin is negotiated about $ 3850 according to CoinMarketCap's data, the platform market capitalization of cryptographic currencies. For those who have invested their finances before 1st January 2017, the fall is still bearable.
However for the many users who have thrown themselves into this new financial adventure when the currency had reached a high value in 2017 during its rise, the latest developments in the course of cryptocurrency will certainly leave a very bitter taste. Comparing the current value with the one done two weeks ago is almost 40% down. And compared to the peak of 20 078 dollars of 17 December 2017, this represents a decline in value of about 80%.
For some people, Bitcoin, the peer-to-peer payment system, looks like a beautiful bubble that is being imaged. For other people, it's saying little to use the word bubble. Rather, it is a wonderful scam in which people have paid a lot of money for billions of dollars to obtain a essentially useless numerical entity whose price was then assessed.
To better show that the market capitalization of bitcoin is a scam, his critics argue that we must understand the mechanism of valuation. According to CoinMarketCap statistics, there are currently 2074 cryptographic coins in circulation against 1926 last September and 1400 at the beginning of the year. These cryptocurrencies that are multiplying over the months attract new investors with ICO (Initial Coin Offerings or cryptocurrency) or other methods and constantly add new coins the platform through the mining. To determine the market capitalization of each cryptographic currency created, multiply the current number of coins by the current price. In addition, as new parts are permanently created through mining, this also creates a new market capitalization when the price is stable, which helps to cover some of the damage down.
At 1st As of January 2018, the market capitalization of all bitcoin cryptographic currency was $ 229 billion. Currently, this capitalization is $ 66 billion, so that $ 163 billion went into smoke. Overnight, people with $ 20,000 worth of bitcoins end up with bitcoins worth less than $ 4,000.
For some users, bitcoin is too risky to be a long term safe haven, to make current transactions or even to speculate. The lanonymisation of transactions and the decentralization of the exchange which makes it its strength would no longer be sufficient arguments to invest in it. Others prefer to turn to gold, because this precious metal does not rust in time, unlike bitcoin which could make your eyes blush depending on the circumstances. Others, on the other hand, prefer to be content with traditional currencies and to attend the different episodes of this currency.
But for other people, it's only a matter of time before the value of bitcoin will grow again.
Source: Wolf Street
And you ?
What do you think about this bitcoin downgrade?
Do you think it's just temporary and that a financial boost will happen in the coming times?
Or in your opinion, this decline does it only show laramque dguise tip of the finger by several?
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After China, South Korea banned fundraising in cryptocurrency and promises tough penalties for violators
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