Subprimes generally aren’t the safest investment you can make on the long term, and economists like Nouriel Roubini are claiming such truth since years. In 2006, he predicted the 2008 subprime crisis. Now he is claiming, the Bitcoin is an economic bubble,which is going to Pop and fail. “It’s difficult not to see the downfall of this cryptocurrency, who has lost up to 70% of its value from December of 2017 to February of 2018”.
Even if the Bitcoin reach back the 10 000$ level, still many people and cryptocurrency expert are predicting a new dip and many crypto-sceptic claim his near death.
The Bitcoin rises and falls
Most people know about the rise of value of Bitcoin that occurred from January to December during the year 2017. It was indeed spectacular, as it went from around $1000 to $19600. However, the history of the Bitcoin’s value graph between its creation and 2016 is less known. If you envision its price graphic from a yearly perspective, it peaked suddenly starting from 2017, but if you watch it closer, you’d see it has gone down several times, and even has lost as much as 87% of its value from November of 2013 and January of 2015.
Even during 2017, it nosedived more than once before reaching almost 20 000$. All that considered, the actual downfall may be seen as one among many others before the uptrend will start again. Of course, it all depends on the deep causes of the loss of value the cryptocurrency is actually facing. Not everyone agrees about the cryptocurrencies downtrend; some say it’s temporary, while others say it would lead to the end of these assets. But most of those making negative claims about cryptocurrencies are those who fear it.
However, the past and the Bitcoin history state his destiny. A path full of volatility and crash which always rise again and stronger.
Is the Bitcoin heading to its end? Cryptocurrency world greener?
Too many events are playing against the Bitcoin recently. We can for example mention China, who seems to take decision upon decision against cryptocurrencies and their users located within Chinese borders. We can also mention the controversy surrounding the Tether cryptocurrency, which is one of the most used currencies to acquire digital assets on exchanges. Bloomberg revealed about it subpoena during the end of 2017, due to suspicious relationships with Bitfinex.
Tether Unlimited, the company linked to the cryptocurrency, has been asked to prove if they have enough dollars to back the circulating Tether units. If the Tether drowns, it will take many people with it, and that’s another reason for people to be afraid of crypto-investments at the moment. Although, the fate of most currencies seemed to depend on the Bitcoin, as they nearly-instantly drowned right after the Bitcoin started losing value.
We would have to wait for all the doubts to be resolved before knowing the real whereabouts of bitcoin and other cryptocurrencies. The upcoming G20 summit might be decisive when it comes to the fate of the digital assets; important personalities from around the world will discuss about the expectations we can have towards them.
Most of the expert still wary the bad news which could bring a new dip. However with a new stabilisation around 10 000$ the Bitcoin seem unlikely to have a new dip more than 50% of his current value. And the future looks brighter than ever.
Like Julian Hosp predict, we are on the road to 50 000$