Bitcoin Price Drops To Under $190 With Record Transactions
The trials and tribulations of Bitcoin have been well documented by our team. Whether it be the hacking of Bitcoin exchanges like Mt. Gox to the volatility of the currency rate, Bitcoin never ceases to entertain.
Anyone following the growth of this virtual currency would almost certainly classify it as the ultimate gamble. There are few commodities that in such a short space of time can change their market value by hundreds of percent. The volatility and chance to earn massive profits in a matter of hours is exactly what has got so many people investing or should we say speculating in what some dub the modern day gold rush. The hype and publicity surrounding Bitcoin is as interesting as the product itself. In the last year it seemed the virtual currency was gaining some stability with more and more merchants, hotels and online services accepting bitcoin as some sort of payment option. Even certain governments like the UK are open to the idea of incorporating it into their overall financial system.
As we speak it has been another roller coaster ride with the purchase price of bitcoin under $190 which is more than 46% lower than last month. To put things in perspective Bitcoin at its record high in 2013 was trading at about $1000. Speculation as to the reasons for the recent days of woe are rife. One plausible theory is that the cost of mining Bitcoin is becoming too high to be profitable as the hardware required to do this is costly and investing in mining gear is only viable with the currency trading in the $600 range.
The future of Bitcoin is probably one of the most difficult to predict as the last few years have shown. While as we speak the currency is taking a serious hit there are many Bitcoin companies like Coinbase and Blockchain who have serious funding behind them which should enough incentive to prevent an absolute collapse.