Bitcoin has been depreciating steadily since the turn of the year. After nearing the $20,000 mark in mid-December, the price has taken a beating, shedding more than 55% of its value. As the rush to sell off crypto investments continues, many people wonder, with palpable heartbeats, "is this the end?"
Bitcoin has endured a lot for the past decade. Bans, regulations, price fluctuations- these are common.
The crypto market, in general, has been volatile and we've seen a ton of price swings. We will probably keep seeing them for the future until the market matures and stabilizes.
The industry is still in a nascent state.
Furthermore, January is Bitcoin's worst month on record. Due to some news or a happening, the coin has tanked in several Januaries past. This January is no different.
The news suspected to be fueling the recent price fall include Facebook's ban on crypto ads and concerns about stringent regulations in Asia. There is fear, uncertainty, and doubt (FUD) amongst crypto investors and many are selling off their holdings at a loss.
However, people usually miss the big picture in a cycle of frenzied sell-off like the one we're experiencing. Bitcoin at the moment is less of an asset and more of an innovative technology which is still taking baby steps. Talking about the price only will be totally missing the point but that's the only thing people seem to care about. This is what led to the creation of scam coins which are being advertised everywhere.
Facebook's ban on crypto ads will halt the altcoin frenzy to some extent- which is a good thing for Bitcoin, but it will harm legitimate businesses nonetheless. There's more than meets the eye though, as the ban came days after Mark Zuckerberg announced his interest in cryptocurrencies. The talk is Facebook wants to kill the competition before launching its own virtual coin, but that's beside the point.
Clearly no one knows the exact value of Bitcoin at the moment but the potential of a decentralized peer-to-peer unhackable payment system is enormous. It is not hard to picture people buying back into Bitcoin as soon as the FUD wears off. A lot of work is going on to make Bitcoin better. The price most likely will rise back up once the lightning network is fully figured out and implemented on the main network.
Finally, in the words of financial advisor and crypto investor Ric Edelmen, "there's no question that digital currencies are the future. You should be prepared to own it for years".
"I've watched it go from $1 to $1,000, back to $200 and then to $16,000", he said in an interview with CNBC.
"If owning this asset is causing you to stare at the ceiling at night, you shouldn't own it," he said. "There's more to life than money."