Bitcoin finally dropped under $4000 after hitting a high of $5000 in August. It is currently trading at $3875 amid more bad news. The lack of certainty about the Chinese banning exchanges has led to more traders dumping their coins for fiat. Also, there has been some bankers who criticized bitcoin as having no value which led to a more negative view of bitcoin from the general public.
The fear over China banning bitcoin exchanges has led to a steady slide of value over the weekend and the slide will likely continue until China officially announces its next moves. A ban if exchanges would in essence cut off Chinese traders from the rest of the market. This would be catastrophic for bitcoin as there is huge trading volume that occurs in China. However, nothing is certain yet as the Chinese government has not made an official statement.
The Chase CEO
The CEO of Chase Bank has called bitcoin a “fraud.” Not only has this led to lots of negative coverage in the news but has brought the argument about whether bitcoin has value to the forefront again. This argument probably also somewhat contributed to the price slide as the public got a lot of negative stories about bitcoin in the aftermath of the Chase CEO’s interview. Many news organizations openly questioned if bitcoin was worthless in news headlines. But to answer this question, one must look at the history of bitcoin. Bitcoin has not increased linearly but has suffered major bumps over the year, only to come back stronger and hit a new high every time. Bitcoin also was never meant to have this much value; it was made to demonstrate the blockchain technology and have value for those that use it. Banks and the government do not have control over bitcoin due to its decentralized nature so they sometimes restrict. Blockchain is also arguably the technology of the future and bitcoin could be the currency. This drop is just another small bump in a very large road.
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