The Hush Post: At the beginning of this week, the cryptocurrency, bitcoin, went through a wild swing, and sank many hearts and rattled many minds. The cryptocurrency slid below $14,000 for a short period on the Bitstamp exchange on Friday. This was roughly a 30 per cent downward slide from the top it recorded at $20,000. It was last down 7 per cent at $14,499 but fell as much as 14.7 per cent earlier in the Asian day.
Students and learners of the cryptocurrency, say, the up and down swings are bad for the heart but could prove good for the pocket. Though, it might seem like gambling. In November, it crashed almost 30 per cent in four days from $7,888 to $5,555. In September, it fell 40 per cent from $4,979 to $2,972.
The cryptocurrency, was roughly at $1,000 at the beginning of the year. But it had surged to a record high of $19,666 on Sunday in the lead up to exchange giant CME Group’s launch of its bitcoin futures. It has since lost about a third of its value.
“Keep in mind that bitcoin has gone up a lot this year, so a correction is always likely,” Shane Chanel, equities and derivatives adviser at ASR Wealth Advisers in Sydney has said.
Bitcoin’s success brought debates pertaining to cryptocurrencies and the kind of alternative they offer. It has also boosted the profile of its rivals, which offer alternatives to bitcoin.
“A lot of the capital is flowing from bitcoin into alternative coins. You’ve seen companies like Verge and Ripple, which are over 400 per cent in the last week,” Chanel at ASR Wealth Advisers said.
Verge and Ripple are among an array of cryptocurrencies that both imitate and compete with bitcoin.
Stephen Innes, head of trading in Asia-Pacific for retail FX broker Oanda in Singapore, said that there have also been moves out of bitcoin into Bitcoin Cash, a clone of the original cryptocurrency. Trading in bitcoins is like stocks but to say right now that one can stay for long would be misleading. Yes, one needs to stay in there but for how long, is a decision which should base on, ones greed rather than logic. “Trading in bitcoin is akin to gambling, so its movements don’t follow logical patterns,” said Takashi Hiroki, chief strategist at Monex Securities in Tokyo. While CME and its rival Cboe Global Markets move to list bitcoin futures has given the digital currency some perceived legitimacy, some policymakers remain skeptical.
CRYPTO CURRENCY IS LIKE NEIGHBOURHOOD-COMMITTEE-WALI-AUNTY GOING CRYPTO PLUS WILD PROFITS OR LOSSES.
For those who do not understand it, the faith is almost like on the old neighbourhood committee, or kitty. So to call it a crypto-committee or cryto-kitty won’t be a bad idea for now, plus some weirdly handsome profits and heartbreaking losses. Could such an investment also amount to the same dangers as with of the neighbourhood-committee-aunt vanishing with your hard earned money? We are yet to reach an understanding on the subject, to precisely predict how it will unfold itself in future.