Bitcoin Falling In Price, Is The Bubble About To Burst?
Bitcoin has made massive gains over the past few months with its price reaching a peak of $19,026.21 earlier this week. However, the digital currency is experiencing a massive price slump in recent days, shaving off a massive chunk off its value. This prompted some observers to claim that it has reached its zenith and will soon correct its value, as many bubbles have done in the past.
According to Eric Shiffer, the currency's inflated price is the "bloodiest financial danger of the 21st century." The veteran entrepreneur and CEO of Patriarch Equity told Express that Bitcoin is the "tower of death" that will result in the imminent demise of people's investment which he likened to death by thermonuclear explosion.
"Right now we are looking at a financial bubble that is bigger than the tulip craze and I believe that we are headed for a bitcoin crash that will supersede any financial worries of the 21st century," said Shiffer. "People are going to be shocked when they try to liquify their bitcoins."
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Independent research analyst Ronnie Moas echoed Mr. Shiffer's concerns saying that its inherent volatility threatens to depose it from its leading position in the crypto markets. According to Moas, as the confidence in the digital currency is shared, a panic could sweep through investors leading to bitcoin's collapse.
"A lot of people are sitting on millions of dollars in profits right now and the minute they think this is going to crack, they are all going to sell at the same time," he said.
But while analysts and investors have mostly been prophesying doom and gloom for Bitcoin, they have also admitted that the cryptocurrency still has a lot of mileage left. Many, including Moas himself, stated that the currency could potentially reach $300,000 to $400,000 in value before it comes tumbling down. Nevertheless, the inherent unpredictability of the digital currency makes it incredibly risky while at the same time, very, very, lucrative.
