Tuesday, August 15, 2017

Profit taking sees Bitcoin drop $600 in just a few hours following it surpassing $4400 per coin

The one given about Bitcoin and other cryptocurrencies is that they are extremely volatile due to their free market attributes.  By this we mean that there are no regulated structures in place to keep the digital currency from going parabolic (which it had done since the Hard Fork last week), or fall just as fast in a time when sellers rush to get out the door.

Earlier this morning on Aug. 15, Bitcoin had crossed its latest all-time high of over $4400 per coin only to see a sudden selloff of over 8%, or in dollar terms over $600 in just a few short hours.

Volatility in a given sector or asset will dissuade a large number of investors from dipping their toes into those waters, and also counter arguments that cryptocurrencies are a solid store of wealth over the short term.  And in the case of Bitcoin, where the majority of trades take place in three countries in Asia, any events or economic news in the Far East will have a severe effect both up or down for Bitcoin and subsequently all other cryptos.


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