The value of bitcoin as shown by Coindesk reveals that bitcoin has been falling drastically. At the time of this report, bitcoin was trading below $10,000 for the first time since it experienced a rapid increase in value in December 2017.
This drop in value has led to investors rushing to sell off their digital coins, so they don’t lose too much. Even though it’s a known fact that cryptocurrencies fluctuate and values are determined by a group of miners, this would be the first time that bitcoin would fall drastically. Nevertheless, bitcoin isn’t the only crypto in the steep-fall saga; Etherium, Ripple, and Bitcoin cash have also had a share in the fall.
This has resulted in a deep concern among investors who rushed to invest in cryptocurrencies without having a deep understanding of the losses they could accrue. Investing in cryptocurrencies involves risk, especially as it’s almost difficult to identify what factors determine the value of bitcoin and that of other digital currencies.
After South Korean placed an embargo on the bitcoin trading, there have been speculations that regulators would restrict trading very soon
and in fact, bitconnect announced its closure on Tuesday, as well as the Chinese government who had earlier begun a thorough scrutiny on all exchanges within the country, and has now taken a step further to end bitcoin mining.
South Korea’s Finance Minister, Kim Dong-yeon in an interview on Tuesday revealed the government’s stance on crypto-trading. “The government stance is that it needs to regulate crypto-currency investment as it is a largely speculative investment. The shutdown of virtual currency exchanges is still one of the options that the government has”, he said.
On the whole, this is not a good time for cryptocurrency investors. Bitconnect which launched its own coin placed so much focus to popularise it and get so many investors. However, it also suffered a crash despite every move by the firm to retain the value. The firm affirmed that it has also faced a series of backlash from two US watchdogs.
Even so, Warren Buffet has forecasted that cryptocurrencies may have a bad end; although he was uncertain about the timing. “When it happens or how or anything else, I don’t know, he said.