There are many types of cryptocurrency at present in the market out of which nearly 700+ are active and are been traded. Bitcoin is considered the most valuable of these. According to CoinMarketCap, it has touched high of $ 20k+ in December 2017 and low of $ 6k+ in the first week of February 2018. That is it lost nearly 70 percent of its value within 2 months. Although it is a steep fall but not one of the steepest in bitcoin’s history.
In nine years of its journey, there were short-term corrections of more than 70 percent before. Diving to 30 percent happened in numerous instances every two years or so. It has also dived to 66 percent is a very short duration of few days.
In between June 2011 to August 2011 bitcoin’s value was eroded by 75.47 percent. That is from high of $ 29.23 to low of $7.17 in less than two months.
In the span of four days during Aug 2013 bitcoin value was eroded by 37 percent. At the beginning of 2013, it slipped two times eroding its value by 40 percent. In the first half of 2014 bitcoin saw an enormous 59 percent correction.
All the above slides were meager compared to its long-term correction between Nov. 2013 and Jan. 2015 which eroded bitcoin’s value by over 82 percent. But the remarkable thing is that it has also recovered under all the circumstances.
Most of these swings occurred when the crypto currency was in its emerging stage. Bitcoin was new and most of the people have never heard about it, never hit headlines of any media and away from public glare. It came to the light because of its unprecedented and extraordinary rise when it gave a huge rate of returns to investors. The opening of exchanges and trading on exchange gave common people a hope of its steadiness. Till then it was mostly used by technical geeks because of block chain technology or by anti-social elements trading in illegal drugs and arms on dark web.
Looking back one of the golden periods for bitcoin and crypto currency was 2017 when it saw a manifold increase in its growth and popularity as well, among retail and institutional investors. Even many governments acknowledged crypto currencies growing recognition in face of problems like tax evasion, illegal trade, and ambiguity which is associated with it.
There is no concrete answer as to what will happen next. Going by the past pattern bitcoin may recover and touch a new high. Many financial experts are of the opinion that bitcoin has a promising future because of the solid technology it is base on. There are also no shortages of the skeptic who think bitcoin is like a bubble ready to burst anytime as in the case of Tulips or dotnet or Wall Street. They feel that bitcoin is the biggest bubble and it is time to say goodbye to it.
So depending on which way the cryptocurrencies and especially bitcoin moves, there is one serious advice coming from all the four directions; to invest only that amount which you can afford to lose or the amount which will not make your life topsy-turvy financially.