Why is Bitcoin dropping today?

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Why is Bitcoin dropping today? – Bitcoin becomes a really interesting topic in the whole year of 2018 because of its value which is suddenly highly increased. Impressively, it even reached $30,000 per coin. Then, when it is decreased, it is not less than $1,300. In other words, Bitcoin is still a good choice for investment. Unfortunately, its value is continuously decreased and in the beginning of 2018, it is averagely low even half of its peak.

Is it only a temporary phenomenon?

Actually, this problem is not only happened to Bitcoin or BTC. Even almost all Cryptocurrencies have the same problem. it is decreasing significantly. There are many experts who try to analyze this problem. many of them claim that it is only a temporary phenomenon. It means that there are many chances that the values will be increased in the future even more than its peak in 2017. This phenomenon is also known as Bubble phenomenon.

Why is it called as Bubble phenomenon? Well, as you see that bubbles are formed in a short time but they are disappeared suddenly also. Meanwhile, some others call it as the Tulip phenomenon. It refers to the growth of Tulip flowers in Netherland centuries ago. One day, this flower was really difficult to find so that the price was simply multiplied. However, it went back to normal after some days and left people losing money.

Whatever it is, we should see the development until some months later to know whether it is really a temporary phenomenon or not. One thing which is sure is that currently, many people like to mine this currency. Despite its popularity, Bitcoin is indeed believed to be really beneficial in the future.

Why is Bitcoin dropping today
Bitcoin Price Today-Bitcoin trades around vital levels of $6500 | Photo by : cryptolithy.com

The Presence of Many Competitors

Undeniably, some other Cryptocurrencies also experience the same matter with Bitcoin. It is that their values are also decreased; let’s say Ethereum, Ripple, Litecoin, and more. But some experts also say that the reason why Bitcoin is decreased is due to those competitors. In 2017, it can be said that Bitcoin is the most popular one of all. Some Bitcoin traders even don’t realize that there are actually some other Cryptocurrencies to be invested.

But later, it seems that their knowledge related to the Cryptocurrency matters is getting increased. Now, many miners are also interested to try other currencies. More than that, some of them indeed offer features that Bitcoin may not have. Here are some Cryptocurrencies that become Bitcoin’s competitors. First, we have Ripple that actually has been a currency developed for international exchanges since 2012. Not only is a currency, the system also enables it to be transferred and traded by everyone.

Next, there is also Ethereum. Ethereum has been considered as the second most popular Cryptocurrency after Bitcoin since some years. Different from Bitcoin that tends to be closed; this one is more opened since the software platform used here is decentralized. This system is considered as safer, more secured, more transparent, and also more modern.

Although there are still many possibilities why Bitcoin value is decreased, those two are still considered as the main causes.

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