Bitcoin Just Failed The Coronavirus Test
With the first appearance in 2009, since then bitcoin has taken all its investors to the roller coaster rides. Dramatically, bitcoin has never seen a day where its evaluation fell below a dollar. In fact, 2017 was the year when the evaluation price of a single bitcoin was more than $20,000.
Last year was a profitable year for the bitcoin industry, and everybody was hoping for the same this year as well. But this cryptocurrency took an unexpected turn in 2020 after the wake up of the Coronavirus (COVID-19) pandemic.
Recently, bitcoin suffered one of the worst drops of the year from $7,600 to $5,300. And after that fall it has not seen the rise again. Instead, the price of the bitcoin comes close to $4,000.
Even you can start with investing in the cryptocurrencies via this link cryptotrader.software/login and can take advantage of the low prices.
How does the Coronavirus infect bitcoin’s investment
For a longer period of time bitcoins have always been a safe place for the traders to invest in. with the fixed rule and strick regulation that was made possible. And as bitcoin was not a kind of entity that can be controlled or monitored by the centralized government and the state government. In the past, the government has faced a financial crisis that has made them to liquidity the cash in the form of credit cards. This was also a method to bully the cryptocurrencies investor as these currencies do not have any physical form.
In that light, bitcoin’s prices jumped from what it was usually used to be. The sudden change in the value of the cryptocurrencies was due to the fact that many investors no longer consider bitcoin investment to be a safe haven. And are now calling out all their investment. This has made bitcoin investment as a risky asset.
What else you can be concluded on the price drop
Although the drop in the bitcoin value was huge, that was not the only drop, as the drop has already started with Russia and Saudi Arabia not coming to an agreement with the crude oil production. With the bitcoins and other cryptocurrencies playing an important role in those countries, the conflict between Russia and Saudi Arabia, the drop in the bitcoin evaluation make sense.
However, those who are well informed by the cryptocurrencies market, they must be knowing about a fraudulent company named PlusToken runs a Ponzi scheme. Where in the scheme they fraudulent around $2 billion in bitcoins and other cryptocurrencies from its investors. This fraudulent scheme also played a vital role in dropping the evaluation process of bitcoins.
What is ahead of the Bitcoin
The problem of these cryptocurrencies is that there is not a single reason that can make the investor invest in them. And that who invest in them, they do so on their own accord. There is an investor who sees the bitcoins as the fiat currencies where on the other hand there are investors who buy the bitcoins at low prices and sell them when they can make a profit out of it.
The cryptocurrency market is a volatile market and every investor is aware of that. No matter how stable these currencies become, every investor is fully aware of its nature.
You can look forward to seeing more swings in the price of the cryptocurrencies. And this is not going to be stabilized until and unless there is a concerted effort in making the user use these currencies for the common purposes for smoothing out the price value of cryptocurrencies.
The valuation of the cryptocurrencies is done by the trusts. The blockchain helps in building that trust among the cryptocurrencies users. The cryptocurrency will exist only if the trust is not broken. But the recent events are affecting the current standing of the cryptocurrencies.