First great Bitcoin correction

First great Bitcoin correction

After several weeks of reaching records highs Bitcoin dropped a 160$ so far today loosing more then 60 percent of its value. Only 2 weeks ago Bitcoin reached a 1 billion dollar market cap and this week this more then doubled to close to 2.5 billion, just in a few hours this went back close to were it was 2 weeks ago. At this moment the buy and sell order books have a huge spread, bitcoins are being sold for 100 dollars and being bought for 150 dollars. The panic has sure hit the market and I’m curious were we’ll stand tomorrow.

Massive media attention on Bitcoin

There has been lots of positive and negative media attention in the last few weeks skyrocketing the Bitcoin price to unimaginable heights. Lots of people felt this couldn’t go on forever but due to the nature of Bitcoin the logical price could be 100$ or 1000$. In fact we are probably only at the beginning of the rise, this sell off will only involve the media more and this will attract more buyers. If Bitcoin will become anything serious a price of a few hundred dollars won’t be were it should be standing as there will be only 21 million bitcoins available to the world.

What can be the future of Bitcoin?

If Bitcoin manages to enter the currency market properly you have to consider that there will only be 21 million bitcoins ever, this means that with 6 billion people on the planet, equally divided amongst them each would own only 0.0035 Bitcoins. If you look at it from this perspective the current price is nowhere near what it should be.

What are the problems with the future of Bitcoin?

The future of Bitcoin looks good if you read the current items in the news but if each person would use it as currency and make transactions on it daily there would be many Terrabytes of data per year to just store the blocks. Also currently the network could be taken down with a 51% attack with an investment of less than 2 million US dollars. Cryptocurrencies look good in general without central authorities controlling it but BTC doesn’t seem to have the specifications to become the main currency. It might be the main cryptocurrency for the coming years but it sure won’t be the most accepted one.

Recent market data on Bitcoin

Bitcoin Crash

Bitcoin Crash

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