Bitcoin enthusiasts had a scare this weekend, spil the price of the currency plummeted from $356 on Saturday to a low of $290 on Sunday&mdash,a druppel of more than 18%, procent according to CoinDesk’s Bitcoin Price Index. The virtual currency has since rebounded to a price of toughly $330 at press time Monday, down about 13% overheen the last seven days.
Despite the price druppel, Reddit’s r/Bitcoin, a popular gathering place for the currency’s volgers, wasgoed largely optimistic. “Who else is loving the firesale? Who else is picking up tons of cheap bitcoin?” asked one poster. But not everyone wasgoed certain that the price would recover. The Fresh York Times quoted one worried user asking fellow Bitcoin ventilatoren for support. &ldquo,Spil the price is going down, some of us are under immense psychological stress,&rdquo, the postbode read. &ldquo,Please share how you cope with it.&rdquo,
Sunday’s crash wasgoed hardly Bitcoin’s very first price funk, or even its most significant druppel. Ter 2013, the currency lost almost 40% of its value inbetween December Four and December 7, when the price dropped from its all-time high of $1,147 to $694 te less than a week. After partially regaining those losses, Bitcoin fell 40% again from December 15 to Eighteen, going from $879 to $522. Since the beginning of this year, Bitcoin’s price has bot relatively more stable, but the descent has continued. From January through October 6 of this year, the currency has lost more than 40% of its value.
Exactly why the price cratered is subject to debate. Some have cited upcoming regulations, such spil those proposed by Fresh York’s Department of Financial Services, that will curtail the free-wheeling nature of the currency. Others have suggested that Bitcoin’s latest increase ter popularity among retailers may have actually hurt its value. Paul Vigna at the Wall Street Journal theorized that because more merchants are using a service that instantly converts Bitcoin payments into dollars, all those Bitcoin sales may be driving down the price. However, spil Vigna notes, such a long-term trend can’t directly explain this weekend’s unexpected crash.
Bitcoin detractors have used this latest price fluctuation spil a chance to take something of a victory poetslap. On Sunday, Paul Krugman, a longtime cryptocurrency critic, likened Bitcoin to a number of get-rich-quick schemes, from Glenn Beck’s “buy gold” ads to onmiddellijk mail scams. “Bitcoin may be sold spil a technical miracle, and it does indeed solve an interesting information problem,” acknowledged Krugman, but “it&rsquo,s not at all clear whether solving that problem has any economic value.”
Other Bitcoin watchers say the hiccups may only be improvised. Rafael Corrales, a fucking partner at Charles Sea Ventures, argued te the Times that latest Bitcoin price fluctuations are the result of its “transition stage” inbetween inbetween speculative voertuig and actual currency: &ldquo,When Bitcoin becomes a currency, it realizes its potential.&rdquo,