Bitcoin’s roller coaster ride isn’t over
If you know even a little bit about crypto, you know about Bitcoin: the super crypto that every other digital currency wants to be like, or to improve upon. Whatever anyone has to say about it, its definitely had a fantastic year.
Its growth has been nothing short of astronomical, a 1,700% upward trajectory for this year alone. Most of the action has been over the last couple of weeks, ever since it reached the $10k mark in November. It continued to grow, even trading at $20k on some exchanges.
Then Bitcoin showcased its characteristic unpredictability by dropping to nearly $8k very quickly. The bubble chants grew louder and louder, with crypto cynics seeming to say ‘told you so’ every chance they got. However, most people forget that this is just how Bitcoin goes, its volatility making it swing from one extreme to the next.
During an interview with CNBC, Dr. Julian Hosp, who is co-founder of fintech company, TenX, had this to say:
“I think we're going to see Bitcoin hitting the $60k mark, but I also think we're going to see Bitcoin hitting the $5k mark. The question is though, 'Which one is it going to hit first?'”
Even though drastic drops have some new investors shaking their heads in dismay, it does provide the ideal opportunity to buy more bitcoins. Hosp agrees:
“For experts that have been in the market, this was actually a welcome dip. This dip for us was very, very healthy, and some of us have used it to buy a little bit more because suddenly we had 40% to 45% discount to all-time highs.”
It’s not just Bitcoin. The whole cryptocurrency industry suffers from manic bouts of volatility. Just two weeks ago, its combined market cap was just over $600 billion. It then proceeded to lose $200 billion over two days. At the time of writing, it was set at just over $590 billion, so who knows what the future will bring?
Hosp does however have an idea, and it involves an even bigger drop:
“I don't think it's going to be a bubble that's just going to burst and everyone is going to lose their money, but I think it's going to be that all the coins and all the assets with very little use or value are going to get sorted out. The money is going to flow into those assets in this cryptocurrency space that really deliver value, have new technology, and are being used by people.”
This definitely seems like a good idea, even if it does mean an even greater price correction. Digital currencies are the way of the future, so it stands to reason that we’d invest more into those that foster mainstream adoption and usability.
Author : Jack Dean
Jack has worked in the cryptocurrency industry for 5 years now as a reporter. His experience is predominately in banking, while he also has a keen interest in the forex world. His daily output is read by thousands of readers globally.