July 10, 2019
Cryptocurrency price fluctuations are among the reasons some otherwise savvy investors shy away from including Bitcoin in their portfolios. However, while digital currency is a new phenomenon, it has already weathered multiple economic tribulations, hostile media coverage, and technological upheavals. Here are some of the main reasons cryptocurrency prices are often unpredictable, and why that could soon change. If you are an investor who’s interested in buying Bitcoin with a cash or credit card with Bitcoin ATMs, CoinFlip offers secure and intuitive Bitcoin terminals conveniently located throughout the U.S.
In 2017, the price of Bitcoin went from $750 in January to a jaw-dropping $18,000 by December. The following February, the price dropped to $6,300 but held steady through most of 2018, before declining again, bottoming out a year later at $3,400. However, since the low of February of 2019, Bitcoin has been on a rapid ascent, and is approaching $10,000 as of early summer 2019.
What gives? How can a single asset value rise and fall so spectacularly? Here are a few of the reasons why Bitcoin has been especially susceptible to volatility.
While these factors have influenced the lack of stability in cryptocurrency, most of them have been successfully addressed, making Bitcoin and altcoin markedly less susceptible to wild value swings. Firstly, the technology is becoming far more secure in terms of crypto storage permeability, making cracking increasingly difficult. Secondly, with more merchants adopting cryptocurrency as a method of payment, states are increasingly levying stronger regulations in order to ensure a measure of economic stability. Finally, as investors become more informed and the technology improves and becomes better understood, the investor pool will mature, resulting in reduced wild speculation. Not only will these factors increase overall stability, they will cause values to go up steadily, albeit more slowly than previously.
Although Bitcoin highs approaching $20,000 may not be seen again in the near future, all signs indicate that it is becoming a smart and stable investment.
If you’re interested in buying Bitcoin with cash or credit card with Bitcoin ATMs, CoinFlip offers secure, intuitive terminals throughout the U.S.
*This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, accounting, or investment advice.