Bitcoin investors are now beginning to put a smile on their faces. Bitcoin’s wild ride continues with full force, this time for the better however. Bitcoin recently dropped just under the $6,000 mark and now, just a week after the great fall, Bitcoin is back with vengeance.
Since last week, the “people’s currency” has appreciated in value over 40%, topping $9,000 over the weekend. According to CoinMarketCap, Bitcoin plunged just under $8,100 over the next 24 hours, however, before coming back at $9,000. Bitcoin is now trading at around $8,850 per coin.
With the cryptocurrency market going up and down and wiping out huge sums of money, like last week, as it wiped out almost $550 billion in market value, the real value behind digital currencies is dictated by emotions and primarily expectations.
As CNBC recently reported the word of the renowned economics professor, Robert Shiller, “Bitcoin has no value at all unless there is some common consensus that it has value”.
Similar opinion to this was expressed by the CEO of Goldman Sachs, Lloyd Blankfein, who said in the summer that the future of currencies and their value may be agreed upon the consensus of people and investors. So, really, the value of cryptocurrencies is coming from the belief of people that this market has huge potential in the future.
While India and China are doing their “best” to regulate the market, Japan and Singapore are competing for being crowned “the cryptocurrency heaven” in the world. Opposing poles constantly influence the value of Bitcoin, and with that, the whole value of the cryptocurrency market.
Bloomberg reported on Monday that Bitcoin’s recent recovery could be the result of investors sensing that regulators aren’t going to crack down on cryptocurrency trading as many expected, as quoted from Time.com.
One thing, however, is sure. Demand commands price. So, as long as investors believe in the value of Bitcoin, being as a transaction-convenient tool or as a store of value, Bitcoin will continue to surge in price. And while corrections are inevitable, the ultimate price increase will be present in due course.