It was on 7th December 2017 that the value of Bitcoin surpassed the threshold of $15,000 for the first time thereby making yet a new milestone and its most rapid movement. Reports suggest this particular cryptocurrency has gone through a staggering rise in value, rising from $3500 during the middle of September 2017 to its present rise which is a meteoric rise. At the beginning of this year, a single Bitcoin was worth an amount less than $800.
People are guessing what would happen in the near future concerning the value of this cryptocurrency. It has been a long time since Bitcoin has stopped being used as a currency for buying things, perhaps because its value has been soaring higher and higher with time. Hence the question among the financial speculators is that, ‘is it a bubble?’ If answered yes, then when is this going to burst?
Some traders think that we’re getting close and hence they’re trying to short Bitcoin or make wild guesses or bets that the value is certainly going to decrease soon. One of the experts has said that this is one of the biggest opportunities for shorting. There are a lot of people who feel that this is the biggest thing that is going to occur ever in the history of mankind. At the same time, there are lots of people who think that this is nothing but a bubble or a Ponzi scheme. Well, both can’t be accurate with their predictions.
Though the usual trend for the valuation of Bitcoin is just up, the cryptocurrency has always remained excessively volatile. For instance, in November, the value of Bitcoin plummeted by 20% within less than half an hour, thereby falling from $11,000 to $9000. If you’re a true believer, you will think that these are nothing but temporary blips but at the same time, few skeptics caution the fact that any kind of plunge could become permanent. Similarly, after crossing the threshold of $15,000, its value soon after dipped down to around $14,800.
Energy costs are yet another issue that has been brought forth by the staggeringly high valuation of Bitcoin. To sustain the Bitcoin network, it takes huge amounts of power and it has been estimated that this particular cryptocurrency consumes as much electricity as does the whole of Denmark. Whether or not this prediction will rise or fall soon is tough to predict but now Bitcoin is just used as a specific asset class and this is more unsustainable.
Amidst all this, the financial experts are striving hard to make some sense out of this entire phenomenon. People who use other currencies find out utility in a static value but this can’t be found in the world of Bitcoins. The only question in this game is how high will the scores go?