The price of Bitcoin has crashed, taking the cryptocurrency market by storm. Analysts are not certain as to what triggered the crash, however, the implications of this even are massive. Companies that do business using cryptocurrency may want to reassess their policies.
Bitcoin has had a very long period of stable growth until recently when it reached its lowest price in the last year. This was highly unexpected as analysts started looking for explanations only after the value of the cryptocoin dipped by 10 percent.
The importance of this event cannot be underestimated especially when considering the fact that cryptocurrency is slowly playing a bigger and bigger role in our society. With hundreds of services and businesses accepting payment in the form of Bitcoin and other forms of cryptocurrency, this is the first time when they may have to reassess their position regarding digital currency.
While similar drops in price have been seen in the case of other types of crypto coin, Bitcoin was widely considered as the most stable and dependable form of cryptocurrency. However, opinions may change now that it has shown signs of financial weakness, as investors may reinvest their money in other, more stable assets.
What caused the price crash?
Many analysts consider that the crash is due to the fact that the investors are reacting to the upcoming change in Bitcoin, where the cryptocurrency will split again in order to create a new type of currency. However, there are also theories that say that the price crash is a result of whale manipulation or bear market breakout.
Either way, the fact that the market has taken a serious hit is undeniable. The upcoming split to create Bitcoin Cash has a large number of people on the edge of their seats, just as it happened in the past when hard forks occurred.
What are the consequences?
There are several ways in which the price crash has affected businesses, and it is important to keep in mind that this comes at a time when most started considering that Bitcoin was the most stable cryptocurrency to date.
When it comes to businesses and companies, Bitcoin has made large strides in the last year. There are currently hundreds of services that accept payment through Bitcoin, and it is safe to say that the companies behind them may have to reassess their position in order to still make a profit.
As for the actual impact on our society, the massive drop in price may determine those who look towards a future where cryptocurrency would be a regular way to pay for goods and services to be more reserved and to either look for alternative types of digital currency, or to wait and see what happens.
What may happen?
There is no consensus when it comes to what the future has in store for Bitcoin and other types of cryptocurrency, however, analysts believe that we may see a surge on the market in the last weeks of the year. Where that will place Bitcoin remains to be seen.
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