Currency gurus have long believed that the constantly surging value of Bitcoin simply wasn't sustainable. Stalwarts like Warren Buffett have made their reasons known. And while proponents of cryptocurrency never denied a possible drop or crash, they still believe it will be as stable or more stable than existing centralized and regulated currencies.
Bitcoin is almost always being discussed at some level in the media. If it isn't in the news, it will likely be a topic debated on one platform or another, where experts are known to share their views about this cryptocurrency, often filled with speculation concerning its sketchy future.
While proponents of this blockchain-based endorse its credibility and liken it to a digitized version of gold, skeptics are wary. The feared predictions became a reality – Bitcoin made the headlines again, and this time, the news was far from sweet, with value dropping more than 10%.
Economic and monetary news seldom sound any alarms unless the stocks crash. However, last week's Bitcoin plunge has remained in the headlines for days. The news of at least a 10% drop in Bitcoin value has drawn attention far and wide, perhaps because this event is something experts predicted for a long time but just took quite long to happen.
Monetary experts say that people, in general, don't understand or fully trust the bitcoin, although many are investing in it simply because it has been growing in value. They don't understand it because they aren't sure what it's based on. However, Bitcoin is not regulated like the Dollar; it is secured on Blockchain tech, which means it can't be manipulated, and it is capped at 21 million.
While bitcoin and other cryptocurrencies are strongly secured on the blockchain, they are not immune to speculation that often drives the market of most goods and currencies too. Speculation can alone impact stock value, and Bitcoin is not immune to this.
What's to be expected is hard to say, particularly when government crackdowns against the currency in one part of the world can trigger immense devaluation. This is perhaps where the real test lies for cryptocurrencies like Bitcoin. While they are a promising prospect for consumers all over, public confidence versus transparency versus direct or indirect interference will seemingly determine their eventual stability.