The artificial currency Bitcoin is losing more and more of its value after the recent panic attack. The price slide throws a spotlight on the experiment in virtual space, in which one loses real money. Many hopeful savers and small investors get a “bloody nose”. Trust in Bitcoin has been massively damaged. But as is well known, hope dies last.
Bitcoin, the digital art currency, has yet to bottom out after its recent crash, as referred on CEX cashback. After a half-day compulsory break on the most important online exchange Mt. Before the price slide started on Wednesday, Bitcoin had traded at the peak of 266 dollars. After a technical breakdown and a panic reaction by the Bitcoin owners, it had rushed down to $ 105 – to a level that was still well above the current price. All recovery efforts in the meantime have been in vain.
“Some get a bloody nose”
Even experts find it difficult to classify the crash. While those who have been warning of a speculative bubble for a long time see themselves confirmed, others dismiss it. But even fans of Bitcoin are concerned about the process.
“The extreme level also worries us a little. Probably some savers and small investors who have not understood the principle correctly and are now running along in the herd instinct will get a bloody nose,” says the managing director Friedhelm A. Schmitt of the Munich investment house Phylax Financial Innovations . The hedge fund was one of the first large professional investors. Nevertheless, Schmitt still firmly believes in the success of digital money.
The course correction was due. “But we don’t believe that trust in Bitcoin will be permanently damaged as a result. As after the burst of the first bubble in 2011, the situation should normalize again. The course will then stabilize.”
Waiting for long-term investors on CEX cashback
Nevertheless, the hedge fund sold almost all of the bitcoins as a precaution. “First of all, we sit back and relax and see how the situation develops,” says the investor Schmitt. When the time is right, he wants to get back on track: “Bitcoin has enormous potential.” At the moment a lot is happening that will support the project in the long term. For the first time, venture capital is flowing on a large scale to stabilize the infrastructure and close security gaps.
While hacker attacks and abnormal exchange rate fluctuations are perceived from the outside, they see positive things in the background almost every day – “People who helped develop Google are now relying on Bitcoin”.
On the Bitcoin marketplace Bitcoin.de, a blogger writes that Bitcoin traders have to show strong nerves. He quotes the late stock exchange master André Kostolany as saying: “If there are too many shaky hands in the market, the crash is not far.” The steep course upwards attracted many adventurers who got off as quickly as they got on. What Bitcoin needs now is investors “who believe in it and are interested in the long term,” says Schmitt.
The virtual Bitcoin currency, which was founded in 2009, is supposed to be an alternative to the existing money market with its classic currencies. The money is created by the users themselves in a complicated process and is supposed to function independently of governments and central banks.