A recent 35% drop in Bitcoins value raised many speculations in the financial circle and many even considered it the end of this virtual currency. On around April 10, the bitcoin plunged to $250; however, fell drastically to $60, more or less.
Many Bitcoins’ critics termed it the ‘death of Bitcoin’ and predicted the collapse of this democratic currency soon. Meanwhile the Bitcoins’ prices resumed in the next week and now hold the value in between $120 to $140. The stability in the bitcoin rate is favorable and holds a great value in online trading.
Joe Wiesenthal, a renowned bitcoin expert and blogger, thinks that bitcoin supporters should be really happy by what is happening to the price. “The price range of bitcoins, which of course for most assets would be a wide range, but is basically the same as not moving.” He further writes, “If Bitcoin is going to become a currency that’s actually used, rather than just a vehicle for speculation, a relatively stable price will be key. Bitcoin boosters should be psyched by the recent tranquility.”
“Any market is subjected to certain risks, but that does not mean that it will be dead”, says a London based Bitcoins trader for the same, “Bitcoins’ stability is good news and what we should do is to keep hold on our currency, without taking any regressive decisions.”
Renowned venture capitalists and a form Facebook executive, Mr. Chamath Palihapitiya also supports bitcoins and comments over the recent fall of the currency in his own style. Excerpts:
“I personally own Bitcoin in my hedge fund, I own Bitcoin in my fund, and I own Bitcoin in my private account. It is a huge deal. It’s a huge, huge, huge deal. Because what you’re talking about right now is, for the next three to five years, an unbelievably better stored value. It is gold 2.0. Right? The value of gold that hedges the world economy, about $9 trillion, right? Thirteen hundred an ounce, of which only a hundred to a hundred and fifty dollars is the actual production value. So all the rest is imputed.”
“Well, guess what? I can do the same thing with Bitcoin only I can do it outside the purview of every single government. It’s being used everywhere you would think it would be used. Russia, Iran, Iraq, Egypt, Venezuela, Argentina. Everywhere you have currency pressure. Everywhere you want to basically shield your assets. And then, after that, it will probably become a payment mechanism.”
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