Bitcoin’s Volatile Value Fluctuating the Cryptocurrency World
The value of bitcoin has fallen significantly, and things got hectic for cryptocurrency world. Bitcoin plunged more than 20 percent to a low of $12,504 according to CoinDesk, down more than $3,000 from $15,820 less than a day ago. The digital currency recovered slightly back to $13,545, but was still down almost 13 percent for the session- CNBC says.
Even though Bitcoin’s value is still 60% over than the last month, fluctuations in value were too unpredictable and tumultuous. As a result, using bitcoin became quite hard. Some online platforms like Steam, online game selling platform, announced that they cease to take Bitcoin as the payment method. Multiple exchanges are saying the enormous amounts of trading led to problems with transferring them.
Naturally, Bitcoin’s spectacular rise has coincided with the increase in amounts of interest, more people now craving to invest. It also appears to have expanded alternative cryptocurrencies, such as ethereum and litecoin, which have both seen noticeable earnings in recent weeks. However, there is serious concern that bitcoin has formed a bubble that could detonate at any moment.
Bitcoin notoriously has a very controversial fame. Numerous financial experts are advising potential investors to stay away from investing money in bitcoin, while others predict and perhaps even speculate on the idea that Bitcoin’s value would rise to $1m mark.
It was not obvious what caused the Bitcoins’s sudden dive this week.
“The vast majority of long term holders of bitcoin are still way in the money and have shown no sign of cashing out,” Michael Jackson, partner at venture capital firm Mangrove Capital Partners, said in an emailed comment to CNBC this Friday.
“We see the exit of short term speculators and we have seen it before. The fundamentals are still in place and there is no reason why the bitcoin ecosystem should not continue to develop.”
However one of the Bitcoin.com co-founders Emil Oldenburg, a Swedish native is being now skeptical about bitcoin’s future.
”I would say an investment in bitcoin is right now the riskiest investment you can make. There’s an extremely high risk,” he says in an interview with Swedish tech site Breakit.
Oldenburg’s issue with bitcoin is related to the high transaction costs and lead times. Indeed, bitcoin transaction fees are doubled every three months so far, and it now takes on average 4,5 hours to confirm a bitcoin transaction.
Ironically saying, according to Oldenberg bitcoin.com is distancing itself from bitcoin (BCT) and has even stopped developing services around it — to mostly focus on bitcoin cash (BCH). Oldenburg says the bigger “block size” limit of Bitcoin Cash, currently at 8Mb — in comparison to bitcoin’s 1Mb — results in lower transaction fees and a safer, more liquid investment.
The biggest argument over cryptocurrencies that they do not have value behind it: as gold does for example. That is why more coins are coming to the market should store the value in them: their main value is that user can actually use them.
New coins coming on stream need features a user can actually use for their value to increase.
Vinnd’s 25% of profit goes to buying up tokens on the market with the aim of increasing their market value.
