The Rise And Fall Of Cryptocurrency: Bitcoin
Dylan Klim
Copy Support & Staff Writer
In recent months, investors have been left on their toes due to the sudden drop in the price of Bitcoin. This drop has the nation wondering if this is the beginning of the end of what has been a global currency phenomenon.
Bitcoin is the first of its kind. What makes it so unique is the fact that the currency is worldwide, there is no need to visit a bank or have any physical form of payment. Being completely digital, bitcoin is as simple as sending an email and can be used to purchase any item.
10 years ago, the thought of digital currency was nonexistent. By the year 2012, it took off and the price of the cryptocurrency started off at $12 each. Approximately 12 months ago, the price had risen to a $1,000. Bitcoin continued to grow up to around $20,000 per until it took a sudden turn of events, causing the market to crash.
Since December, Bitcoin’s price has continued to plummet. In the past month, Bitcoin’s cost has dropped as low as sixty percent, causing customers to lose faith in the evolution of digital currency.
Although the market is currently at a low point many investors believe it is a great time to cash in on Bitcoin because it is on a continuous up-and-down roller coaster, suggesting the market will rise again.
“Compare it to filling an air balloon, you can keep filling it but eventually it will burst,” said Natalie Beck, junior. “In one of my business classes, I heard about Bitcoin and buying into it right now would be like catching a falling knife.”
It is simple supply and demand. The more people that buy into Bitcoin, the higher the price will be. This will make a market for it to increase substantially, but in due time the price will be valued high. This, therefore, causes the demand for Bitcoin to decrease forcing the market to crash.
If investors buy during a fall, they are basically paying to lose money. In simpler terms, the Bitcoin roller coaster is on a rapid dissent currently but will be on the rise again. Surveys predict that Bitcoin will be worth over $30,000 by the end of 2018.
“You have to be foolish to invest in Bitcoin right now and trust you will make a profit from it,” said Beck.
For now, Bitcoin is at a standstill; all investors can do is just merely be patient and wait for the Bitcoin roller coaster to rise again.
