The value of bitcoin has been a bit of a roller coaster ride lately. The digital currency was riding high a couple of weeks ago at more than $10,000. However, the bottom dropped out and it began to make a rapid decent all the way down to only $3,500. There are many reasons why this happened. Some people have attributed the crash to the ongoing coronavirus crisis. However, there are others who feel that many people selling their bitcoin assets at the same time resulted in the value going down so fast. Panic set in for many investors who wanted to bail out when the price started to crash. This caused the entire bitcoin market to falter even more.
It is always wise to not panic in these situations. People who have invested for a long time are smart enough to know that it is smart to hang on to your assets during a crash. This is especially true with bitcoin. This might sound crazy to most people. However, the logic is sound. The value of bitcoin is going to go up eventually. Therefore, holding onto the bitcoin until it rises will help you avoid taking unnecessary losses from selling when the value is very low like many people did.
There is very good news for bitcoin investors over the past 24 hours. The value of the world’s most popular cryptocurrency has soared all the way up to $6,700. This is a big jump because it was worth roughly $5,500 the day before. There are many experts who think that another leap might be happening in the next week. However, bitcoin has been notoriously hard to predict since it was created more than a decade ago. Therefore, assuming the price will go up might result in a big loss if you invest now.
Bitcoin has shown huge rises and falls in value. This has made it an asset that many investors stay away from at all costs. There are many veteran investors who prefer putting money into things that are more predictable and less volatile. That is very understandable. Bitcoin is popular because it can be used as an alternative to the regular banking system. It can also be used anonymously. This appeals to people who do not want their name associated with certain transactions. Therefore, there will always be a market for bitcoin. It remains to be seen if another big rise is on the horizon.
Dil Bole Oberoi
