Why bitcoin crash and is it going to crash even harder or not? Get ready for all the expert predictions about bitcoin crash. If you missed our previous sharing “bitcoin history”, we suggest you to quickly go through it as we have summarize 10 years of bitcoin history in simple words.
Bitcoin price went higher and higher till 2018 and then it crashed hard for the first time after reaching its highest value of $20,089 USD. You can see bitcoin history for more details as today we are going to focus on reasons why bitcoin crash and predictions of experts that is it going to crash soon?
Bitcoin Crash Explained
Bitcoin is a cryptocurrency created in 2009 and since then its value kept on increasing until in 2018 it got crashed when Korea banned anonymous trading of bitcoins. But the predictions about bitcoins are proved totally wrong till now as in it has been predicted many times that it is going to crash hard and will fall right from where it started.
If these predictions were true, main stream media in 2013 prediction would have been most wrong. Just like that, most popular tech companies today like Google, Amazon and Facebook etc. won’t be this much successful after the 2001 crash in stock market. They survived and continued their work and today not only running successful tech companies but are also in the list of top 10 richest people in the world.
The fact is if you listen to the media, it’s saying since 2009, that don’t buy bitcoin because it is going to crash hard but the history tells us a different story. It’s value in first five or six years increased by 50% and sometimes 75% every year. Still there are some facts and valuable points that needs your attention. Let’s see what are the few reasons that causes bitcoin crash? By crash we don’t really meant a hard crash but just a normal crash.
Why Bitcoin crash?
Bitcoin crashing is mostly due to the huge number of requests to the Coinbase for buying and selling their bitcoin. The system gets overstressed due to this and Coinbase is a primary website and therefore it stays down sometimes all day. This is why bitcoin crashes a little but not so hard.
Following are three reasons that can led to bitcoin crash:
Lack of anonymity and regulation
Bitcoin is considered as an anonymous currency like all other cryptocurrencies. There are arguments that because of bitcoin considered as a currency of black-market, no one can be so sure about its life. No matter how successful or high value it reach, if government forces some regulations of its exchange and declares it as illegal in every aspect, it will crash may be in one night. However, you don’t need to worry as bitcoins surely got plan B which includes media support. Moreover, it is said by some experts that what couldn’t happened in 10 years, won’t happen I future too.
Appreciation in bitcoin value indicates a bubble
There is always an end to everything. We have many online examples of success similar to the bitcoin. Just like the success of dotcom domain, when everyone started to buy dotcom domains blindly buy giving even millions of dollars for the best names. People relate such success with a bubble, a bubble which grows bigger and bigger but then always reaches a tipping point and the bubbles burst. Just like that, experts think that bitcoin has reached that tipping point and may be it becomes stable but there is very less possibility that it will go on increasing once again.
Bitcoin is not a functional currency
First of all, bitcoin is not a currency of any country or so. Neither its value is fixed nor does it change rarely. We all know that bitcoins value is so volatile that it can be used as a regular currency. For e.g. can you imagine the menu of any restaurant with pricing in btc. It seems so unrealistic buying a burger or pizza in 0.0001 btc or so. It is not possible as bitcoins value so often fluctuates. As compared to other fiat currencies, the value swings in bitcoin is so frequent. Therefore, we don’t see any chances of bitcoin being used as a functional currency in near future. This factor is also one of the reason for cryptocurrency crash.
Is Bitcoin Going to Crash?
Now, we think after all the discussion we have done above, it’s you and only you who can decide whether bitcoin is going to crash or not. If you want to invest in bitcoin, we suggest you to read analyze its history, have advice from experts, do some research and then decide whether you should opt it or not.
We hope you like our content and if you miss out the history of bitcoin and what is bitcoin and all. Have a quick look at them as well for better understanding of complete topic of bitcoin. Comment us below your thoughts and share your experience with the world.