Bummed about the current Bitcoin (BTC) price? Read this

June 13, 2018

Bitcoin sinking shows no signs of stopping as it dropped below $7ooo and currently floats in the mid-six range. The new wave of speculation broke out along with some panic selling as people are predicting another doomsday for bitcoin, the world is ending, skies are falling. But is it really like that? Is the buzz of bitcoin dying out or is all of this just normal market behaviour?

Astronomic gains that lasted almost six-months, from mid 2017 to december made a lot of money to a lot of people but anyone with two brain cells can tell you that such rise was unsustainable and a heavy correction move is on the cards. And we are witnessing it for the past six months.

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The meteoric rise drew attention of media and broader public but regulators also took notice. Regulators are a separate story, the complex nature of cryptocurrencies caused headaches for them as classifying something invented couple of years ago with methods and rules set 50-70 years ago is hard. Old-fashioned regulators and cutting-edge tech have hard time finding common ground.

Regulator uncertainty and trouble in finding right definitions generated a lot of doubt and fear in community, shook out a lot of weak hands that are moaning all around internet, spawning more of their fear eggs.

In times like this, you should just zoom out and look at the broader picture. It is true bitcoin lost 70% from all time high in only six months and it is also true it often sharply dips another 5-10% on daily basis, BUT it is also worth noting: bitcoin was around $2000 this time last year. Turn another page and you will see it was only $750 back in June of 2016. So, if you look a year by year progress – this price range is more healthy and suitable level for the long-term view.

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Current prices are healthy for the long-term success

Commenting on possible causes for the recent nosedive Kyle Samani, crypto hedge fund manager told MSN Money

“I don’t think this is driven on any particular news, just the general downtrend after the 2017 run,” before adding;

“A lot of people who bought at $9,000 in April are realizing that they’re not going to break even anytime soon, and are instead trying to get out.”

Kyle Slimani

So,

This bubble pop, prolonged bear market or just a return to realistic valuations – call it however you want, is a good for the industry and the future of the technology in the long run. It is a natural repellent for scammers, snake oil sellers, get rich quick schemes as they will move to something more profitable for them and leave crypto and bitcoin to enjoy a steady, healthy and proper growth predicated on a sound tech with real value for people around the globe.