With the fall in the price people want to know – Is Bitcoin A Bubble? It cannot be decided easily whether the bitcoin is a bubble or not. This is because there are various instances and reason which affects the price of the bitcoin.
In this article, we are going to discuss the various factors which can make you decide whether you are investing in a bubble or not.
There is no way you have not heard about the bitcoin if you know a little about the cryptocurrency. You can say that the origin of the cryptocurrency was started with the origin of the bitcoin. Since the inception of the bitcoin in 2009, it has become the face of the cryptocurrency and is gaining popularity since then.
Bitcoin is the cryptocurrency which has seen different phases in the last decade. Even though the bitcoin is decentralized currency, these phases even make the government agencies take interest in this technology.
Is Bitcoin A Bubble?
There are various points in the last decade which may make you believe in the bitcoin even now. But the question arises that you should or should not. So here are some of the past instances when the bitcoin face a similar kind of problem:
You might think that this was the initial stages and should not be considered. But you have to understand that this is the problem from the initial stages.
In the starting of the year, it was of just 30 cents but it boosted and raised up to $30. This was considered to be positive start but this does not last long and the price of the bitcoin fall up to $15. And at the end of the year it was left with the value of just $5.
You might think that the final result was on the positive side. You are right about that but the rise and the fall in the price of the bitcoin did not take time even at that point, it was very quick one.
But you can say that it was the first bubble burst of the bitcoin.
2013 was the year when a lot of ups and downs happened. The bubble of the bitcoin burst happened twice in that year. In the starting of the year, it was around $15 and reached up to $50 in the middle of the march. And in the next month, it reached the mark of $230. But within a week it reached up to the mark of $70.
After stabilizing for months around $100 it fluctuate again in November. In this month it reached up to the mark of $1,100 and fall to the point of $700.
This was the year when the bitcoin came into the eyes of the whole world. In this year it started with the value of $900 and by the end of the end of it to around $20,000 mark. But after that, the price of the bitcoin kept on falling and still is.
These are the instances which can help you know about the history of the bitcoin regarding the bubble burst. So is this the end of the bitcoin or you can still expect it to rise back.
With the rise and the fall of the price, we have always seen the bitcoin recovering. So should we expect the same from it now? Well, you can but the problem is, it never stayed down for so long and it is still falling.
You can expect the rise in the price of the bitcoin-only if there is a large amount of investment is done. Or a policy is passed which makes the flow of the bitcoin and another cryptocurrency even easier.
So “Is bitcoin A bubble?” is the question that cannot be answered easily or a simple one that is yes or no. But from here we can conclude that it is a currency which is very volatile and gains its value again at any moment.