The crypto currency, Bitcoin, is a digital
currency and electronic payment method called the first distributed digital
currency, as the technique maneuvers devoid of a central repository or singular,
Ever since the
middle of November 2017, the worth of bitcoin, as claimed by Bitcoinity.org, has
skyrocketed and nosedived with such unanticipated rapidity that investors are now watching out for an out and out boom or bust.
The unforeseen fluctuations have stimulated evaluations
to the dot-com bubble, and have highly accentuated the tremendously hypothetical
and elusive nature of capitalizing in crypto currency. Within
last Wednesday, the value of bitcoin. However, the price of the bitcoin has escalated
again to approximately $12,000. Even so, economists, investors and stockholders
are still very insecure of its stability at such an incremented value, given
the terribly inconsistent nature of bitcoin.
NPR’S Uri Berliner reports say that Bitcoin
currency is not linked in any way to the whims and fancies of the prevailing
government, which is a healthy market trend when assessed globally, but the
recent price crash is quite discouraging for investors and financiers to invest
substantially amount in crypto currency!
However, some economists have
declared these value vacillations to be a pattern well acquainted with.
David Kotok, chairman and chief
investment officer of Cumberland Advisors, said that, two decades ago,
technology and Internet stocks achieved an excess valuation of seven trillion
dollars based and invested upon conjecture. Kotok also added that, that back
then the share prices were bid up to exorbitant prices, but when their prices
slumped, investors naturally got disheartened and raised a uproar. Similar
patterns are now being observed in crypto currencies.
Investors saw a similar rise and fall in bitcoin prices in
December 2013. Bitcoin hit what was a record price of around $1,150 and fell by
40 percent just days later, after
China announced that it was banning banks from trading the cryptocurrency.
And there have been dramatic rises
and falls in the price of the cryptocurrency within the last year.
Some economists have declared say that bitcoin reflects hope.
Peter Thiel’s Founders Fund invested
between $15 million and $20 million in crypto currency, as reported by The Wall Street Journal.
Overall, economists are still uncertain. While the optimistic
economists are saying that the crypto currency is trying to find a rock solid
foundation in terms of bitcoin price and value, but Citigroup experts believe
that the value of bitcoin will probably plunge
again to fifty percent of its current worth.