January 2018 has been a terrible month for those who have invested in bitcoin. The cryptocurrency plummeted in its value, seeing a dire fall from the position it held just a few months ago, at the end of 2017.
The total market value of all bitcoin currency in circulation at the end of 2017 was over $250 billion and was nearing the 300 billion mark. Now in 2018, this figure sits more around the $150 billion mark. A sheer-faced drop from just a few weeks back, and worse so is that this drop is continuing – albeit at a slightly lessened rate.
Within the last 24 hours, Bitcoin has seen a drop to below $10000. The road truly looks rocky ahead. There have been large quantities of malicious talk about the future of cryptocurrencies from a number of different sources for quite some time. Larger banks and corporations have voiced disproval in general of this currency-newcomer, many governments have been sceptical, and large swathes of people have discounted cryptocurrencies already. There is definitely doubt surrounding the bitcoins and altcoins of the world. Yet if the boom of the previous few months says anything, it’s that people have faith in what they can profit off, and for a brief (relatively) window of time last year there was an incredibly large amount of profits being shared around. So what does this really mean? It means that investors should ignore the rumours and attacks that get shouted and batted around and focus on the facts. Focus on the cold hard truth that can actually be worked off.
When there was profit to be had many newbies to cryptocurrencies seized the opportunity. Yet with the recent fall in the prices for many cryptocurrencies, many of these ‘ship-jumpers’ are abandoning as quickly as they were joining. To use a crude expression, many of them believe they are the rats fleeing a sinking ship.
However, to believe in this statement would be naïve. Yes, it is true many cryptocurrencies, and their investors, are going through a hard time right now. But people need to have faith. The market boomed once, and there is a reason to believe this will happen again. The question, in fact, could be posed that it is no IF as to whether bitcoin will increase in value again, but WHEN it will. As to when this financial shift may occur. I do not know. Hell, I doubt any of the world’s finest analysts for cryptocurrencies could predict that. What is important however is not panicking. What people should be doing is thinking ahead, diversifying their portfolios sensibly, and planning for the future. Time will tell.