Bitcoin price: Cryptocurrency’s volatility paving way for more ‘INNOVATIVE’ investments
BITCOIN’S price volatility is a necessary aspect of “innovative” investment ventures seeking to establish themselves in a bigger assets market, cryptocurrency analyst Chris Burniske said.
By AURORA BOSOTTI
Express.co.uk
Sat, Jan 20, 2018
Bitcoin, ripple and ethereum have seen their price plunge sending investors into a panic amid fears of a possible cryptocurrency ban in South Korea.
Mr Burnstike reassured investors claiming value crashes were “inherent” to bitcoin trading markets.
He said: “Historically volatility has been just inherent to these markets. We are less than ten years in since the birth of bitcoin and so with any new market, we have a new technology with a new asset class.
“The combination of those two things creates a lot of volatility but I would argue that speculation lays the foundation for innovation.
“We’ve seen it with railroads, we’ve seen it with autos, we’ve seen it with the Internet and right now we are seeing it with crypto assets.”
The cryptocurrency expert said regulators had already expressed wariness about bitcoin and other such cryptocurrencies in the past and would continue to do so as a necessary part of bitcoin’s progress path.
Speaking to CNBC, Mr Burnstike said: “In 2013 we had negative commentary from a few state regulators so China and South Korea combined with a bitcoin exchange – a crypto exchange called Bitconnect – going offline.
“We need to see this confluence of events to really break up our market and that’s what we saw recently.”
More than $200billion was wiped off the crypto markets’ market capitalisation because of fears of a trading ban in South Korea.
Bitcoin bottomed out at $9,402.29 (£6,774.26) at 3.39pm on Wednesday, its lowest price since November, according to CoinMarketCap data.
Ripple’s price dipped below $1 to $0.91 (£0.66) on Wednesday. And things weren’t much better for Ethereum, which saw its price plummet from $1,431 to $780 (£559) last Wednesday.
Bitcoin price increased to $11,466.68 at 9:51pm on Friday, according to CoinDesk. It saw its highest value before Christmas when it reached the monumental price of just under $20,000.
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