cryptocurrency They shone in 2017 with a rapid rise. But they did it in a bubble, which, as financial experts warned, broke out in 2018.
financial bubble it is characterized by an abnormal rise in the price of an asset. This happened precisely with Bitcoin, digital currency paradigmIn December 2017, it reached its historic high of 19,783 dollars. Now, a year after his peak and ten years after his birth, he is trading at around 3,500 dollars.
Electronic currency fell by 80% during 2018It should be noted that the reduction has drawn on all cryptocurrencies: the global market of virtual currencies has lost a value equivalent to 700 billion dollars.
Some analysts avoid the bubble metaphor and explain the collapse by the nature of cryptocurrencies. Without the support of governments or banking structures, they are prisoners volatility and they are determined by risk.
“I can almost with certainty say that they will have a bad end,” said the famous American investor Warren Buffett in January this year regarding Bitcoin. And he assured that in an interview, his investment firm never believed in cryptocurrency. Later he called this currency “rat poison”.
A few days ago in Tn tecno we tell you that Facebook will launch its own digital currency for making transfers via WhatsApp. In direct connection with the volatility of the instrument, Bloomberg He assured that this currency will be linked to the fund in dollars. Cause? gambetear cryptocurrency instability,
Not all injured
As in the case of different investment instruments, the winner is the one who chooses the best time to enter and / or retire. In this sense the one who bought bitcoins in 2011, when the currency was received for 1 dollar, made a big investmentEven if you did not sell your virtual currencies in December 2017.
On the contrary, big losers are those who bought Bitcoin in times of glory, believing that the value will continue to grow.
In this sense, the French edition Le echos said digital currency "leaves a string of victims, mostly millions of people who believed in it modern miragebut they bought too late. ”On the other hand, there are banks and large investors,“ who have taken a wait and see attitude in the face of instability and risks in the sector ”.
Back pressure: why did cryptocurrency fall in 2018?
The fact of the inevitable mention is computer attack on coincheckrecognized exchange platforms of Japanese origin.
In February, the authorities of this country raided the headquarters of this operator to investigate cyber attack worth over 530 million dollarsAt that time, the cost of bitcoins in Japan fell by 20%. And the splinters reached more markets.
In the same month, a flaw in the exchange office served on a tray new arguments for those who do not trust the cryptocurrency and security of the platforms that manage them. What happened? System error allowed to buy e-currencies for zero dollars!
Hacks really affected the reputation of these coins. A variable that undoubtedly depresses the sector.
In this course we must mention cryptocurrency prohibition in South KoreaIn early 2018, the government of this country, one of the most important markets for Bitcoin, announced that it is working on a project to prevent transactions with virtual currencies.
“We cannot allow this abnormal situation of speculation to go on any longer,” said Hong Kong’s Minister for Government Policy Coordination of South Korea, after the announcement that Bitcoin had fallen by several percentage points around the world. ,
Along with South Korea, other countries, such as China and Japan, have announced measures in the same direction.
Another “shovel in the head” of Bitcoin, perhaps the most powerful, was awarded by the US Securities and Exchange Commission (SEC). This year, the agency rejected the approval of the exchange fund (ETF), which would greatly facilitate transactions with this currency. Wall Street let go of his hand, and the price dropped again.
Otherwise, it should be noted that bitcoin was not the only one in the spin. Cryptocurrencies and platforms, such as Ethereum and Ripple, also slide along this slide.
One way trip?
Although it is “consolation of fools” evil many liberates cryptocurrency defendersAccording to E CNBCMost of the investment assets had negative results in 2018.
On the other hand, interest in these decentralized currencies does not seem to have declined. To show only one button: “Bitcoin” was one of the most popular terms in Google in 2018. Even if it is to know their misfortunes.
Is this the end of cryptocurrency? Or will he have a “phoenix paste”? quoting Le echos: “In other cases (cryptocurrencies) were restored after a death certificate, thanks to its ability to adapt, its advanced technology and a stronger ecosystem than its competitors.”
To trust recovery, it is also interesting to note that cryptocurrency was the axis of debate and reflection during the G20, recently held in our country. The modality continues to be in the spotlight, beyond the critical gaze of many governments.
2019 will be a real testing ground for these alternatives. Will what was predicted by the founder of Twitter, who claimed that within ten years, Bitcoin will become the only currency?