Did the digital currency bubble burst "bitcoin"?
After the speculative rocket rises, the sharp correction wave continues on the currency of bitcoin, beginning with the bursting of the encrypted currency glove, which rose from $ 1,000 to $ 20,000 last year.
To understand what is going on in the digital currency "Bitcoin," many capital market watchers began likening it to the bubble of tulip, the housing bubble, or the Internet bubble. But even if the price of the bacon has risen 60 times in the past three years, price inflation in these other bubbles seems simple.
For the discerning individualities lose some precision analogy
But for the discerning individualities to lose some precision, the fact that encrypted currencies are a very new category of assets is still unclear, and their trading is not regulated.
The bubble is usually formed when speculators' obsession with a particular asset drives prices to levels that no fundamentals can justify. These strong and rapid rises often end with the bubble burst and thus heavy losses to investors.
The sharp drop in the last few sessions may have been the burst of this bubble. This may be the first of its signs, because the price of Bitcoin today is still ten times higher than its price a year ago.
In any case, unlike other bubbles in the world's financial history, the burst of the Betquin bubble will not have serious economic consequences, especially since it is not linked to institutions.
In contrast, as with the Internet, Bitcoin may make positive and radical shifts in the financial world as the system improves operational activities in all sectors.