Bitcoin drops further 12 %.

By rotide
Created 02/02/2018 - 15:38

The value of crypto currency Bitcoin continued to wipe the smile off would be Investors/miners, crashing to just under US$ 8,000 in UK Friday time, to register a near 50% loss in value from the highs of late 2017.

With most currencies such as the Euro, sterling or US$, the value does have some connection to an underlying economy, or natural riches as far as some of the oil or gas rich countries are concerned but this is not the case with Bitcoin. Whether it can be manipulated, or is in fact being manipulated, remains to be seen, as will be the case with a whole raft of other lesser known crypto currencies, jumping aboard the crypto band wagon for whatever reason.

Just a little over a month ago, Pavel Lerner the CEO of a UK based company Exmo, a Bitcoin Exchange. was kidnapped outside his office in Kiev and eventually released after paying a US1million Bitcoin ransom. The company's website also suffered an attack around the same time. Was the motive money, information, or both?

Economists and financial analysts can usually come up with a good reason why a currency is weak - sterling for example has Brexit hanging around its neck long term and short term will react to good or bad unemployment or manufacturing figures but what drives the value of Bitcoin?

Is it as simple as more buyers than sellers driving it up? and then taking their profit as selling forces all the smaller players out and this can be repeated over and over. An untamed global unregulated wild market to be in for sure and one where there is nothing to substantiate any rise or fall, or reveal who or what is moving the market.




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