Its price may fall but bitcoin’s value is that it is useful

Bitcoin prices have fallen below $ 290, the lowest since November 2013, and well below the all-time high of US $ 1,242 later that same month. For about three hours sitting on the price below $ 300.

Relatively regular observations is actually just the tip of the iceberg for bitcoin, cryptocurrencies poster child.

Bitcoin has fallen since its peak last year and during the last six months the slide has accelerated, driven down by scandals such as the collapse of the main bitcoin exchanges MtGox in February and then again in April following a delayed reaction and uncertainties.

The fall of the two can be seen in part as a result of its own success and increasing recognition bitcoin equally open up the market to small investors and the possibility of panic selling. Bitcoin rebounded against the US dollar until August. Promises fixes to prevent the perceived problem of bitcoin is presented which seems to have convinced the market with promises of security for virtual bitcoin “wallet”, and better mechanisms for transfer of funds.

Ripple, for example, is a money transfer system of people-to-people recognize cryptocurrencies and automatically manage the complexity of the exchange. But even the technical promise Ripple marred by its founder’s decision to sell its shares, causing prices to decline. Read more..

Bitcoin come of age

Applying some of the technical analysis of the situation shows that wildly expensive currency during the ascent to the peak in 2013 and then continued trading above the moving average in January, March and May and June 2014. But since early August has been consistently undervalued, with a price meeting resistance and bounces away from the lower price band three times. Similarly, prices have become more volatile since mid-September, pointing to a lot of buying and selling by taking profits or minimize losses investors.

The cause of this decline are complex but three common themes that emerge. Bitcoin has really reached the mainstream, with small investors buying into the currency in the hope of a quick win. That trend has pulled down prices as currency trading becomes disconnected from actual or potential ability bitcoin itself.

Taking this further, bitcoin technology – blockchain that – being confused with bitcoin, currencies are traded. For example, the prospect of which is based on technology Ethereum blockchain, the best bit associated with currency traded price.

And finally, a theme that emerges is that bitcoin is very vulnerable to the practices of the high valuations of technology companies no matter how far the relationship of forces between them.

Look at the bitcoin transaction records for this prince fell the most and you will see – in real time – that’s business as usual. This is a reminder that bitcoin is the currency by using practical and one that people will continue to use while some vendors are ready to receive it. value in relation to other currencies, as long as it is known, is not relevant. There is no shortage of real, currencies of countries that backed fiat throughout the world who are facing the usual fluctuations in value – but the business still must, and does, bring it on.

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