Will Bitcoin Continue To Go Down?
Bitcoin remains the most popular form of cryptocurrency available today, but its market remains quite volatile and will likely continue to fluctuate in the coming months and years.
The technology behind Bitcoin, known as the blockchain, was first documented in a paper written by Satoshi Nakamoto in 2008. Soon after that, the starting value of a single Bitcoin, identified as BTC, was set and trading began to take place between investors and speculators. The Bitcoin market showed steady growth during its first few years of existence before hitting the $1,000 USD mark for the first time in January of 2017.
2017 would prove to be a major highlight in the young history of Bitcoin. The market saw the value of a BTC double consistently, month after month, and then breach the $10,000 USD mark in late November. Just a few weeks later, on December 17, the BTC market reached an all-time high of just over $20,000 USD. It represented a growth of 2,000 percent over the course of a single year, making millionaires out of many early investors and creating a great deal of interest among new buyers.
However, since that point in December of 2017, the Bitcoin market has seen significant drops, some occurring within just one day. At the start of 2018, a BTC was worth under $15,000 USD. Then the market stabilized for a few weeks before experiencing another dip two weeks into the new year, with the price of a BTC falling under the $10,000 mark.
Investing is an imperfect science, especially when it comes to cryptocurrencies, as the technology is still very new and the number of buyers and sellers remains quite low. In addition, the emergence of other blockchain currencies, including Ethereum and Ripple, has created more unknowns in the Bitcoin world.
Experts seem to agree that the massive boon experienced in BTC valuation in 2017 will not be repeated in the near future. However, they do not consider Bitcoin and its competitors to be a dead market. Instead, both positive and negative fluctuations are expected to streamline as the technology matures.
But as cryptocurrency becomes more popular, it’s important to consider it within a political and governmental context. Recently, South Korea made news by announcing that it plans to ban trading on blockchain markets for its citizens. China is also expected to introduce similar regulation, and there is concern that other countries could follow suit. If it happens, Bitcoin will likely see a dip in its value, as the market for investing will shrink.
As always, the best advice when it comes to investments is to diversify. Placing a significant amount of savings into a single cryptocurrency, even one as popular as Bitcoin, is a risky endeavor. As a whole, blockchain markets need to make more progress into the retail sphere, so that owners of the currency can use their holdings to actually purchase goods and services. If and when that happens, Bitcoin and other currencies will likely become more accepted by the general public, which could bring another fast rise to their market values.