Bitcoin: Is this a Bubble Burst or Just a Sad Thanksgiving?
Before we proceed, let’s see what has happened till now:
- Bitcoin remained stable for months after experiencing a steep drop from 8,000 USD to 5,600 USD.
- Started to slide down from $6,000 last week after months of stability and is now down to 4233.33 USD (as on 24th November).
- As reported by CNBC, Thanksgiving last year was when the cryptocurrency began its infamous march to almost $20,000.
- After the peak, the cryptocurrency market in totality has lost more than 700 Billion USD and there are reports which are already predicting the prices to go down even more.
The cost of Bitcoin hit this year’s new low at 4,119 USD but it can also be seen that Bitcoin isn’t the only one going down which is making the market more concerned but according to the interview of Angel Versetti, CEO of the Blockchain firm Ambrosias published by The Independent he said
“I wouldn’t compare the current state of the crypto market to the dot-com bubble,” Angel Versetti, CEO of the blockchain technology firm Ambrosus, told The Independent. “While there are similarities in terms of overvalued new technology startups with unproven or unsustainable business models that were incessant in both dot-com and crypto, the sheer scale of crypto and dot-com businesses are not comparable. I do not believe we are, or were, anywhere close to a bubble with cryptocurrency.
“We are experiencing a strong correction, but the bubble has not formed yet. All the bankers and financiers jumping onto the crypto train signal that the bubble is yet to come. I think when all cryptocurrencies and tokens will be worth 15-20 trillion USD, that will be a bubble.”
Ether (ETH), the digital money that controls the ethereum blockchain was exchanging hands at $264 till last week but now is at a stooping low of 119 USD (Figure as of Nov. 24) . This surely indicates a bad phase for the cryptocurrency market but there are high possibilities that the worst is yet to come.