The course of bitcoin wins violently

in #bitcoin7 years ago

But what happens to bitcoin? Star markets in early December, the cryptocurrency sees its course collapse for several hours. While it seemed to reach the $ 20,000 for a bitcoin Monday, December 18, it has indeed plunged to $ 13,000 Friday, December 22. A violent fall, reminding how much the price of the e-currency created in 2009 is as volatile as unstable: in early 2017, it did not exceed $ 1,000.
At first glance, this turnaround can seem confusing, so for some weeks now, bitcoin has aroused the enthusiasm (and appetites) of a part of the planet finances. On Monday, December 18, the Chicago Mercantile Exchange (CME) launched cryptocurrency futures, one week after the Chicago Exchange Options Exchange (CBOE), the other major stock exchange in Chicago. A form of recognition and institutionalization for bitcoin, whose issue and trade are beyond the control of governments and central banks.
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In fact, many investment funds, in search of yield, have benefited from these new financial instruments to bet on the rise (or fall) in the price. Unknown to the general public two or three years ago, bitcoin has also attracted many individuals in recent months, hoping they too will enjoy the flight.

The regulators themselves were quick to sound the alarm, recalling that this speculative runaway was likely to deflate like a balloon, at the risk of ruining individuals who attempted the adventure. In addition, they point out, the virtual currency has no legal tender. This means, concretely, that no insurance or legal protection can be compensated in case of theft. Have their warnings been heard? Perhaps.

Piracy of a South Korean platform
To understand the fall of the e-currency, it must first be remembered that trading volumes are low. "In addition, bitcoins are highly concentrated: 1,000 people hold 40% of the stock," says Eric Dor, an economist at the IESEG School of Management. Just a handful of them sell bitcoins to destabilize the price. "

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The entire market is way down - not just Bitcoin.

People who aren't buying are stupid.