For a while the news surrounding Bitcoin has not exactly been positive. With the most famous cryptocurrency dropping in value, a lot of investors backed down and moved their assets back in to their traditional investments. Precious metals such as gold and silver went on the rise again as well.
But the tide has changed. Over the last 7 days Bitcoin has been rising constantly, already being up 20% as compared to a week ago. Does this mean a new bubble is forming? Or is Bitcoin restoring it’s value to a desired stable valuation? Both scenario’s are possible.
Let us first investigate what caused the Bitcoin currency to rise and drop, and then rise again in the first place. About a year ago when the cryptocurrency became known through the mainstream media and the general public finally became interested in it, it was no longer the internet coin of geeks and internet guru’s. While being on the rise for a number of years, it started to increase it’s value exponentially. Mostly due to large investors (banks, George Soros, etc) jumping in.
Of course many of those were looking to profit. They were not looking to support the currency, but they just wanted to make some quick money. Understandable, because it became a true hype.
So the moment it went to the highest point in their calculated scenario’s, they started to dump it. Causing a fast collapse in value and a huge number of scared Bitcoin guys and girls to get rid of it fast. So it dropped further and further, and went back to a stable value of a few 1000 dollars.
But gradually, with Bitcoin becoming adapted in society, and blockchain technology being embraced by big tech companies and the financial sector, the coin recovered. And investors are starting to notice that again. Over the last week a new spike became visible, and it’s continuing. We normally wouldn’t give any investment advice, but if there was any moment to buy Bitcoin? It would be right now.
Why would you choose Bitcoin over other crypto currencies? Well, we don’t really have an answer to that. Except for the fact that Bitcoin is adopted in the real economy. In the sense that there are actual Bitcoin ATM’s, that exchanges are everywhere, and that it is becoming a respected and real currency. While still small compared to traditional FIAT currencies, it is already larger in market value than the national currencies of a couple of countries.
As an alternative to Bitcoin, Hack News has always recommended Monero. We do not recommend any other alt-coins, because Monero is special. It is fully anonymous and for that reason it is embraced by an entirely different market. There is a real economy for Monero.
But we will talk about that later. For now, all credits go to Bitcoin.