Bitcoin and Other Crypto-Currencies Hit New Lows
After losing 74% of its value so far this year, Bitcoin’s value, and that of other crypto-currencies have continued to fall this month as a sell-off takes place in what some see as the natural course for the market, and as another opportunity to buy crypto-currencies at a low price.
What’s Been Happening?
According to currency commentators, the massive 12% fall in the Bitcoin crypto-currency on Monday, follows a nose-dive that’s been part of downward trajectory for the crypto-currency which recently hit a 14-month low. Many in-the-know believe that the possible reasons for the longer-term fall and the sharp 12% drop in value are likely to be caused by:
Trouble For Other Crypto-Currencies
Bitcoin is certainly not the only crypto-currency that’s been under pressure in recent times. Ethereum’s ‘eher’ has just fallen 7% in value to $106.69, and the value of Ripple’s XRP has fallen 5.6% to only 34 U.S. cents.
Also, in the light of the U.S. SEC ordering civil penalties against Airfox and Paragon Coin over their alleged selling of digital tokens as securities in initial coin offerings, both companies have found themselves having to agree to the return of funds to harmed investors, as well as registering tokens as securities, filing periodic reports with the Commission, and paying penalties.
It has also been reported that crypto-currency Tether is being investigated by the U.S. Department of Justice over possible manipulation of bitcoin prices at the end of 2017.
God Time To Buy While Prices Are Low?
Some investors, however, see the steep fall in values of crypto-currencies as an opportunity to get into viable crypto-currency projects at discounted prices.
What Does This Mean For Your Business?
The rapid rise of bitcoin value and the many problems that it experienced with regulations and restrictions in some countries (e.g. China), hacks, its volatility, a negative image from its use by international criminals and from its use in scams, a lack of knowledge about how to use it, and the fact that the high price of just one bitcoin made it (even more) niche, meant that it became a commodity and a fast-buck opportunity rather than an actual, useful currency.
Now that the huge wave of bitcoin over-consumption and over-inflated value of bitcoin has burst, many market analysts can still see a future for crypto-currencies as a part of a wider ecosystem, and that the fall in the value of bitcoin is simply a natural cycle of things finding their real level again after the boom.
Many would say that the best thing to come out of bitcoin, so far, is the underlying ‘blockchain’ technology. Blockchain has found multiple useful commercial applications and, as tech companies are now in a race to provide the best ‘blockchain-as-a-service’ offering, businesses will be able to find opportunities to put the technology to good use in innovative ways, creating value and competitive advantages that could start shaking up many markets.