What effects cryptocurrency will have on the stock market
When looking at Crytocurrency, one may say, what is cryptocurrency and how will it have any effect on the market? To show what effects cryptocurrency has on the stock market, I will be using Bitcoin to show you what effects it has. Bitcoin is currently the most expensive and the most sought after cryptocurrency in the market.
Bitcoin Value
The prices of bitcoin have fluctuated greatly over the span of six years its been on the market. When it first came out, bitcoin was worth under $100USD dating back to March 2013. As time went on, bitcoins value was a slippery slope. It would increase by a substantial amount, then fall just as fast. It fluctuated from between $500USD to $1,000USD. This made it hard to predict the values of bitcoin and seeing if it really was the future of money and economics. This was thought to be true until the demand of bitcoin increased by a large margin starting from March 2017 to December 2017. The price shot up from $1,000USD to almost $14,000USD. At this point, everyone thought that bitcoin and cryptocurrency was the future of money. So why did the value fall so much today?
The Fall of Bitcoin and Cryptocurreny
While the value of bitcoin today is still very high at a value of $6,500USD, there must be a reason why it is decreasing in value from the once $14,000USD value. The biggest problem of Bitcoin and cryptocurrency is how exactly are you supposed to value something that doesn’t really exist. For example, one can weigh gold and give it a value. But with bitcoin, you can’t really weigh it, it just kind of exists. For older generation of people, they don’t really understand this concept so they think that Bitcoin and other cryptocurrencies are “bogus.” But just because the values of bitcoin are dropping doesn’t take away from the fact that crypto is the safest and easiest way to do transactions.
