Bitcoin crashed: That's behind it - when it rises again 2018

The Bitcoin course has fallen rapidly - will it soon be uphill again? ©pixabay

Bitcoin crashed: That's behind it - when it rises again ?

The Bitcoin price fell below 7,000 euros at the beginning of February. Why it came to this downfall and whether it will rise again, read here.

Many investors are stunned by the downward move Bitcoin has made since the beginning of 2018 - after all, they are still spoiled by the market prices at the end of 2017. At that time, the cryptocurrency had cracked a record high after another: In the end, a coin was worth a staggering 12,000 euros.

But since then Bitcoin seems to be falling - how could that have happened?

Bitcoin fell to less than 7,000 euros - these reasons are behind it

Certainly, one reason many of the traditional financial professionals in Bitcoin's traditional business see danger - under- regulated, uncertain, pure play money, or even "cheating," says JP Morgan Chase chief executive Jamie Dimon recently named a conference.

But more and more financial gurus and investment legends blow in the same horn: There are Warren Buffet, Goldman-Sachs expert Steve Strongin or Markus Müller, global head of the Chief Investment Office of Deutsche Bank. The latter recently told Bloomberg, the US business portal , "We do not recommend this, it's only for investors looking to invest speculatively," he said. " There is a realistic risk of total loss ."

In addition, Bitcoin brings great risks - especially the extreme price fluctuations, nasty price manipulation in the "pump-and-dump" style and data loss to theft . But the crypto fanbase seems to split more and more with regard to Bitcoin - some followers criticize that the digital money is outdated and transactions would take much too long. In addition, the transaction fees have increased disproportionately high. That's why the SegWit2x update had been planned last November , but the crypto community was divided over how that would work out. So that it does not split, it has now been postponed indefinitely.

Another reason for the downturn in Bitcoin could be that the Chinese government announced in 2017 that it intends to curb trade in bitcoin and to ban so-called initial coin offers (ICO). Those who disobeyed this instruction, threatened with draconian punishments, it said. As a result, China's largest crypto exchange BTC China has stopped trading Bitcoin and closed its doors. Shortly thereafter, other exchanges should be followed.

The crux of it: China is one of the countries worldwide, speculating most with virtual currencies. In addition, it is known that there are the most companies that generate digital money - because of the cheap coal flow . As the manager magazine reports, about 70 percent of the global computing power used to mine Bitcoin should come from the Middle Kingdom. 

But when is it going uphill?

Allegedly, it should not take too long, if you believe the financial portal finance.net . This claims that this is only a temporary dry spell that was predictable. After all , it is almost "tradition" that the Bitcoin price falls in January . The reason for this: Allegedly, this happened once before in January 2016. Thus, the popular cryptocurrency in December 2015, a high of almost 470 dollars (about 380 €) have experienced - to one month later only 350 dollars (about 280 euros) to lie.

The 19-year-old Bitcoin millionaire Erik Finman believes in the future of the digital currency. He told the business insider now why he's so calm on the subject: " There are always ups and downs on the way up, and many people have seen this decline coming in . It was almost a self-fulfilling prophecy, after all many experts have spoken of a bubble . "

Nevertheless, he is convinced that Bitcoin still represents the "safest digital currency that exists". Therefore, he advises investors not to get nervous - after all, it has never been easier to get rich quick these days. Nevertheless, one should always keep an eye on the market and, if necessary, switch to a better, more lucrative coin . "I think that way you are always on the safe side," concludes Finman.