As people all over the world increase their awareness about the crypto-currency revolution, investment experts are lining up to express their opinions. In recent weeks, the pro-crypto forecasters are predicting numbers that defy gravity. It’s not uncommon to see a prognosticator on TV explaining why they believe Bitcoin is destined to hit anywhere between $250,000 and $500,000 per coin within the next two years. At $500,000, the coin would have to increase more that 6000% from it’s current levels. The numbers are mind-boggling.
On the other side of the fence, we find the bitcoin revolution uk naysayers. There are plenty of well-respected financial analyst who aren’t afraid to warn people about the investment bubble. Some even admit that crypto-currencies might still have some play left in them, but sooner or later, the bubble is going to burst, and people are going to get hurt. To drive home their point, they only need to reflect on the IPO bubble of 2001
The crypto-currency revolution is still in its infancy. As such, most coins, Bitcoin included, are trading without historical indicators to help investors. It is a free market in the purest form. Unfortunately, free market trading is susceptible to influence from all directions. Therein lies the rub for crypto-currency investors. With no history to fall back on, investors have to make decisions based on their gut.
The coin is always susceptible to the technical aspects of trading. The exponential increase in price is being driven by high demand and scarce product. Still, investors get a little antsy when the price increases too much, too fast. Then we see the typical correction that comes when an investment becomes over bought. The problem is these corrections are proving to be harsh, which tests the mettle of investors who aren’t used to such high levels of volatility.
Setting technical analysis aside, technology issues are also driving the market today. There’s no denying that the crypto-currency market has had its issues. After proclaiming block-chain technology to be the securest approach to disseminating information, there are holes that are being exposed almost daily. The bugs will get worked out as this kind of technology seems destined for prime time. Unfortunately, Bitcoin has block-chain technology under a microscope right now.