The crypto currency, Bitcoin, is a digital currency and electronic payment method called the first distributed digital currency, as the technique maneuvers devoid of a central repository or singular, centralized supervision.
Ever since the middle of November 2017, the worth of bitcoin, as claimed by Bitcoinity.org, has skyrocketed and nosedived with such unanticipated rapidity that investors are now watching out for an out and out boom or bust.
The unforeseen fluctuations have stimulated evaluations to the dot-com bubble, and have highly accentuated the tremendously hypothetical and elusive nature of capitalizing in crypto currency. Within last Wednesday, the value of bitcoin. However, the price of the bitcoin has escalated again to approximately $12,000. Even so, economists, investors and stockholders are still very insecure of its stability at such an incremented value, given the terribly inconsistent nature of bitcoin.
NPR’S Uri Berliner reports say that Bitcoin currency is not linked in any way to the whims and fancies of the prevailing government, which is a healthy market trend when assessed globally, but the recent price crash is quite discouraging for investors and financiers to invest substantially amount in cryptocurrency!
However, some economists have declared these value vacillations to be a pattern well acquainted with.
David Kotok, chairman and chief investment officer of Cumberland Advisors, said that, two decades ago, technology and Internet stocks achieved an excess valuation of seven trillion dollars based and invested upon conjecture. Kotok also added that, that back then the share prices were bid up to exorbitant prices, but when their prices slumped, investors naturally got disheartened and raised a uproar. Similar patterns are now being observed in crypto currencies.
Investors saw a similar rise and fall in bitcoin prices in December 2013. Bitcoin hit what was a record price of around $1,150 and fell by 40 percent just days later, after China announced that it was banning banks from trading the cryptocurrency.
And there have been dramatic rises and falls in the price of the cryptocurrency within the last year.
Some economists have declared say that bitcoin reflects hope. Peter Thiel’s Founders Fund invested
between $15 million and $20 million in cryptocurrency, as reported by The Wall Street Journal.
Overall, economists are still uncertain. While the optimistic economists are saying that the crypto currency is trying to find a rock solid foundation in terms of bitcoin price and value, but Citigroup experts believe that the value of bitcoin will probably plunge again to fifty percent of its current worth.
