BUSINESSECONOMY

Bitcoin Crash | Is the Bitcoin bubble going to pop?

Key points to ponder

  • Bitcoins are in the financial bubble?
  • Cyber-attack makes a lot of difference in affecting bitcoins exchange.
  • Are the prices of bitcoins going to increase or decrease in the future?

Table of Contents

Let’s start off with what is financial bubble?. 1

Is it true Bitcoins falls in the circle of financial bubble. 2

Bitcoins has been under regulatory authority and government backlash. 2

So, what is the answer for all those debates. 3

Let’s start off with what is financial bubble?

The understanding of what exactly is a bubble and why it is haunting Bitcoins for no reason, first we need to know its meaning. The Professional academic writing service has explained financial bubble definition in a simpler form.

The literal meaning gives an idea a bubble is referred to as price of a commodity, security or any other financial instrument is somehow increase at a rate where it cannot be controlled by its underlying fundamentals. Whereas, those financial bubbles price attracts the investor to jump in, which then constitute a further price increase that are uncontrollable by market fundamentals.

The amateur investors may not identify the signs of an economic bubble, instead they focus on the price strike in the financial asset and think that making profit out of high prices would benefit. However, there is an abundant of investment in dollars which makes the prices up in such an unsustainable levels and this cause a financial bubble.

Is it true Bitcoins falls in the circle of financial bubble

For investors bitcoins are mainly a profit bearing opportunity and also a long term value storage possibility. Any asset such as bonds, stocks etc. have some sort of physical backings whereas bitcoins are digital assets that do bear value due to the fact that other people believe it to have value.

The value of any commodity or a digital asset does fall or rise, which makes the investors attracted just like the animals in the wild target its pray when it smells something delicious coming down its road.

The ‘bubble’ which every investor or newspapers are talking about in the Cryptocurrency’s world means price inflation based on future expectations.

it all started when bitcoins were rather flat for almost 4 years, that range to $500 per bitcoin. the price were reasonable however, in 2016 as the popularity of digital assets begin to get recognition both investors all over the place started speculating into Cryptocurrency world, which led to the high price. The more and more investors begin to take interest; price sailed to $1000 in 2017. On the 12 months of period it reached its highest peak almost $20,000 on the 17th of December.

The price inflation started to show its true colors, this massive change led to the experiencing of classic bubble. Although, the price of 2017 has made powerful claims, but in 2018 the graph shows the trend lower price almost 3800 per bitcoin, this was due to the realization that bitcoin were tad overvalued.

The people debating on the burst of the bubble it did not happened because there wasn’t any perceivable rush to sell the bitcoins.

Bitcoins has been under regulatory authority and government backlash  

There were many speculations happened during the financial bubble begin to take its lead. Bitcoins have lost half of its precious value after the price hit $20,000 said by online transcription service.

New regulations has been predicted by Indian finance minister that their country do not recognized cpytocurrecy as a legal asset and if any one does use it in funding purpose will call it illegitimate activities.

The tether a Cryptocurrency Company were into investigation by US regulators where they were questioned for use of trade digital currency that are claimed to be backed by US dollars.

Much debate about the national government should take actionable procedures to condemn other mainstream cryptocurrencies should be approached with caution. Half of the financial regulators are not that interested in bitcoins as compared to block chain, the decentralized ledger.

This bubble will create a big upswing in complains and political pressure begin to stop or to do something about the bitcoins. If the bubble burst it could create more regulations possible.

For example this has already shown results as South Korea begin banning minors to open an account by exchanging digital value or taxing capital gains that stop in trading of Cryptocurrency.  There have been regulations active in many countries such as Japan, US and the European Union.

So, what is the answer for all those debates

Bitcoin is the popular most assets in the world however; the digital currency does not have many users in London. With niche amount of popularity bitcoin increasing value and media coverage has made customers attracted more.

The bubble was create due to the Asian Market begin to make huge demand for its crypto currency and the reason is because of speculation. The Asian market is making things complicated as when they buy the bitcoin as because of interest and then letting it high as possible and sell it off quickly.

Even though, the price begin to fluctuate the bitcoin market is still functioning rather well. what will happen in the near future is exceptional and nobody knows it might turn as something like gold or that have bigger and powerful value than any other currency would have.

The thing is people are becoming more and more interested in the exchange of digital coins and secondly it is climbing the heavy flow of river. It is already showing colors or shapes molding to form a bubble, booms and crashes. The main question arises what is the last stop of bitcoin will it survive till the end. Will it be a long last survivor?

Author bio:  

Dr. Adrish has been associated with thesis writing help for 6 years and had skills in maintaining well-researched based articles that shows newest trend of the technological market. He is the qualified PhD writer has done Academic writing as a hobby.