Investing in bitcoin is a risky activity, as experts advise before millions of users launch to buy cryptocurrencies like crazy after hearing the siren songs that the media are pouring. In fact, bitcoin has fallen to 10% in the last few hours. For what is this?
There are different variables that affect the price of bitcoin, but the most logical explanation for the fall of bitcoin we are feeling is quite far away, specifically in South Korea.
And the South Korean government has just announced the intention to ban the cryptocurrency trade, causing bitcoin prices to plummet and causing the virtual currency market to be in a state of confusion, without knowing that do with your investments. The Minister of Justice, Park Sang-ki, has just stated that the government was preparing a bill to prohibit the trade of the virtual currency in domestic exchanges.
"There are great concerns regarding virtual currencies and the Ministry of Justice is basically preparing a bill to prohibit the trade of cryptocurrencies through exchanges."
The future of bitcoin
dropped bitcoin
After the announcement of the Korean Ministry of Justice, the local price of bitcoin plummeted by up to 21 percent in the midday trade to reach 17,064 dollars. Right now the fall of bitcoin is around 10%, quoting close to 14,000 dollars after a few days ago reached highs of almost 20,000 dollars.
Although bitcoin is the most famous of the cryptocurrencies, currently the market allows to work with other well-known variables such as Ripple, Tron, NEO, Dash, Verge, Monero, IOTA. All of them would be regulated by the same legislation and investors fear that other countries follow South Korea and begin to regulate the market for them.
The end of the bubble?
Several analysts have warned that the price of this type of cryptocurrency is well above its real value, so it is expected that the bitcoin bubble and other virtual currencies will end up exploding sooner rather than later. They anticipate a further fall of bitcoin in the coming weeks.