Owners of Bitcoin are not happy campers these days. This is because the value of the world’s most popular cryptocurrency just went down by $500 in a span of only five minutes. However, people who own bitcoin must be aware that it is very volatile. It is prone to go up and down in value by large numbers without any warning at all. This is the nature of cryptocurrency. The losses were not just being reported by bitcoin. All of the other cryptocurrencies that are in the top 20 also went down in value. Experts have no idea why the drop occurred.
The value of bitcoin is often impacted by world events like the unrest in Iran and many other things. This means that bitcoin owners should not get too worried when they see the value drop like it has recently. It could just as easily go up by $500 just as fast. People who freak out because their investment just plummeted in value should not get involved with bitcoin in the first place. These people should invest in something that is far less volatile than cryptocurrency.
You might be wondering why people invest their money into bitcoin when it has such wild price swings. One of the biggest things that attracts people to bitcoin is the freedom it provides. You can own bitcoin and still remain completely anonymous. The same cannot be said for many other forms of currency. There is also the fact that it can be moved around the world very easily for fees that are very small when they are compared with the fees that are charged for moving regular money. People are willing to put up with the sudden ups and downs of bitcoin value because of all the other advantages that it provides them.
There are many financial experts who see very big things for bitcoin this year. There are several very respected financial publications that have openly predicted that the value of bitcoin could go as high as $20,000 this year. However, it remains to be seen if that is the case. Apparently, there are key indicators in the way that bitcoin value is behaving that have led these people to believe that a very large increase is on the horizon. If this is true, bitcoin owners need to just forget about the recent losses they have experienced. Better times will await them later this year.
Dil Bole Oberoi
