{"id":7624,"date":"2018-07-31T16:00:18","date_gmt":"2018-07-31T06:00:18","guid":{"rendered":"https:\/\/reckoner.com.au\/?p=7624"},"modified":"2018-07-30T21:16:18","modified_gmt":"2018-07-30T11:16:18","slug":"whats-behind-the-bitcoin-bubble","status":"publish","type":"post","link":"https:\/\/reckoner.com.au\/features\/whats-behind-the-bitcoin-bubble\/","title":{"rendered":"What’s Behind the Bitcoin Bubble?"},"content":{"rendered":"
When cryptocurrency was at its peak, it seemed impossible that a fall would come. However, as history has proved time and time before, this was bound to happen. Still, a recovery might be on its way. But is it worth signing up for a Forex account<\/a> to trade Bitcoin anymore? Let\u2019s see what\u2019s behind the bubble and we\u2019ll prove it is!\u00a0<\/span><\/p>\n According to Bloomberg News<\/a>, the Bitcoin craze comfortably managed to top many of the bubbles that came before it. Not only is it singlehandedly more massive than the dot-com or housing booms ever were, but it also surpassed historical ones such as the Dutch tulip mania of the 1630s. Still, this comparison needs to be taken with a grain of salt due to lack of accurate historical records on prices and other financial aspects.<\/p>\n Robert Shiller, an American economist, Yale University professor and Nobel Prize laureate predicted the bursting of both the dotcom and the housing bubbles. Furthermore, he warned us about the volatility of Bitcoin, comparing it with the tulip craze in the Netherlands. In fact, Shiller claims that the two situations are actually vastly similar.<\/p>\n Just like the Dutch tulips before it, Bitcoin is something that has no real value. However, we have attributed worth to it through greed and obsession, which made it stand out on the market. But just like any bubble before it, this one was bound to burst. And so it has, it seems. At the beginning of 2018, in this very month of January, Bitcoin alarmingly dropped below 10,000 dollars per unit.\u00a0<\/span><\/p>\n The decline of Bitcoin came about just before Christmas in 2017, mere days after advocate and analysts were still optimistic about its future. In the first ten days of December, the world\u2019s most famed cryptocurrency had surpassed the coveted 10,000-dollar threshold and then proceeded to double in value in just a few days.<\/p>\n But as news of a potential ban on the cryptocurrency broke in South Korea, with major power players such as Japan, China and even Germany following suit on prospects of governmental regulation limiting the trading of Bitcoin, investors backed down like never before. The fear that all global governments will quickly follow suit crippled the financial sector indefinitely.\u00a0<\/span><\/p>\nLike Other Bubbles Before It<\/h2>\n
What 2018 Brought<\/h2>\n