The rise of bitcoin especially the one that took place at the end of 2013, when it reached shocking $ 1100 led him into categories of miracles and wonders. But now, for the difference latest upswing brought him to the cover of the mainstream newspapers and hit television broadcasts.
Nowadays, the price of $ 1100 for bitcoin would really look like his breakdown, scratching the bottom of the barrell.
Media is full of negative writings about bitcoin and cryptocurrencies.
Within the deflatement of price balloon banks are openly attacking, realizing and perceiving crypto as a serious technological competitor who can take over. Governments are desperately trying to regulate it, scared by the general acceptance of decentralized currency that they can not control and use as a tax lever.
But lets remember few years ago.....people were laughing sarcastically at early investors.
It's a big shift just three or four years ago from how it was looked at bitcoin and blockchain technology.
Investing in features, penny stocks which is more or less similar to cryptocurrencies, is poorly developed in most of the 3rd world countries and further, so the psychology behind such a sudden rise and fall in prices is poorly known.
Due to 100% increment in 2016, 2017 attracted numerous investors, and in the end, those who were the most inexperienced, fearing that they would miss the opportunity for good and easy earning. Generally they produce mania and ultimately they end without money. Usually they start to sell at the lower prices then they bought for saving part of their investment. Panic and despair are then perfect for professionals who have invested long time ago.
History just literally repeated, vertical price rise accompanied a vertical drop. Since last July it was seen that the price of bitcoin had come to a dangerous zone, but even the most experienced traders could not know when the price would break and when to go all out. Famous bitcoin prophets assumed that $ 10,000 would be a peak....but later admitting their naivety and lost when the price reached $ 20,000.
Uncontrollable growth that occurred at the end of last year is usually followed by a correction of 80-90 percent. Even the classic stock exchange markets are no exceptions. Does that mean taking positions for a new boost. Will that happen? Probability exists. When will this happen? That nobody knows. For two years, five, ten ...
Investment fever has shown us two things, firstly that bitcoin can be worth much.....secondly there are big obstacles to its massive use.
Due to the inadequate bandwidth of the network, which at the peak of trading in November and December resulted in a huge increase in fees and long waiting for transactional confirmation, it became very expensive and impractical to switch bitcoins from wallet to wallet. People opened to other coins.
However, behind bitcoin there is large number of programmers, workers, but also enthusiasts who have been working hard to solve the problem. It's a so called Lightning Network, an additional layer over bitcoin blockchain that will allow bandwidth that does not have Visa, MasterCard and American Express together.
It will be technological solution for the problem. But his instability is next in line to resolve in order to take over the role of fiat money. Hopefully with inclusion of more and more customers and with gradual increase of price its volatility will be put in more tolerable frameworks.
Bearing in mind all the attacks he had survived....indeed many of them while unknown and irrelevant, this crisis will make him even stronger, especially as far as technology is concerned.