Bitcoin leads the charge in the cryptocurrency realm. If it coughs, others sneeze. Currently, Satoshi’s pet project has been getting a lot of stick from everyone who feels threatened by bitcoin’s success.
The anguish isn’t surprising. Many believed the virtual currency would die off naturally for many reasons, including its volatility. So, it was such a surprise when Bitcoin reached the tasty price of $64,000/coin. But that’s when the FUD began.
For those who jumped in when the FOMO (fear of missing out) was massive, the panic is palpable, especially among those new to the volatile world of cryptocurrencies.
This fear among cryptocurrency holders bothers the prospects of bitcoin. Of course, bitcoin is here to stay. The virtual currency will weather its current challenges.
Recall that bitcoin was sold for less than a dollar when the cryptocurrency was created, but it’s currently trading at above $30,000. Between bitcoin’s entrance into the scene and now, there have been ups and downs in the cryptocurrency’s price.
The volatility of cryptocurrencies shouldn’t be a surprise to many. These virtual currencies are driven by sentiments. If buyers feel prices will drop, those buy orders will follow the mood. Comments by notable persons in the society – Warren Buffet, Donald Trump, Elon Musk, and others – have been known to affect the price of bitcoin, whether positively or negatively.
Bitcoin’s price drop is often linked to its PoW algorithm, which is notorious for its energy cost. Elon Musk referenced it as a reason for his company not accepting the cryptocurrency in transactions despite initial claims.
Unlike stocks and Forex, price action in cryptocurrencies, including bitcoin is prone to changes since they aren’t backed by institutions and governments. That explains the volatility of these virtual currencies. Most entities, especially those in the traditional banking sector have launched an onslaught against cryptocurrencies.
These castigations aim to drive the virtual currency to its lowest so they can get in and shut the door in the face of the average Joe. They use the mass media to spread fear, which explains the drop in bitcoin’s price from $64,000 to $28,000.
Regardless of the current market status of bitcoin, its future remains unchanged. There will be price volatility as usual, but the cryptocurrency is expected to weather the storm despite all the FUD pushed out. Sure, regulations might come in, but that won’t stop the growth of the digital space.