Cryptocurrency Prices: Bitcoin Up, Ethereum Down
Bitcoin and altcoins become distinct because of their fluctuating cryptocurrency prices. One of the prime examples of this phenomenon is the poster boy of cryptocurrencies itself, Bitcoin. When it started out, Bitcoin was worth cents. However, it quickly rose up in price. It managed to reach its peak in 2014 with $1,200.
The problem is that price fluctuations also go in the other direction. After it hit its high, the Bitcoin value quickly plunged. Some feared that it was a bubble bursting, but the price bottomed out at around $300. Since then, the price of Bitcoin has slowly climbed back up.
Right now, Bitcoin price is hovering at around the $750 mark. Last Dec. 2 saw it at a six-month high of $760. That is a pretty respectable price for a cryptocurrency. However, that is not as impressive as this year’s $781 price back in June. A lot of people are projecting even higher Bitcoin prices in the next year, maybe even eclipsing the original $1,200 high of 2014.
There are several reasons for this rise in Bitcoin prices. The biggest cause, though, is that a lot of people are scared and want to protect their assets. For example, in China, yuan is facing devaluation. This has many rich people in China nervous.
With their wealth losing value, they are turning to various means to protect it. This is usually done via investing outside China, but thanks to capital controls, this is difficult. However, Bitcoin allows them to evade these regulations and protect their assets.
This story repeats all over the world now as the twin shocks of Brexit and the Trump win are still being felt in the global economy. A lot of people feel that they need to batten down the hatches for a coming recession.
Bitcoin is ideally positioned for asset protection since it does not owe any allegiance to any government. This means that it is protected from the shocks of the global economy. The only factor that will affect its value is the demand. Right now, it is in high demand.
On the other end of the cryptocurrency spectrum is Ethereum. Once touted as Bitcoin’s successor, the cryptocurrency is having a rough time. It debuted strong early this year, but Ethereum is going through growing pains. Today, the price for Ethereum has dropped down to below $8. This is a seven-month low and is a sign of the crisis going on with the network.
The price drop started last week, when Ethereum underwent its fourth planned hard fork this year to deal with network problems. That is a lot of hard forks for what is essentially a new cryptocurrency.
Currently priced at $7.88, Ethereum is still stronger than its closest competition, but the network worries have rattled a lot of users. However, a lot of true believers see this as a transition period before Ethereum finally manages to get its footing. Only time will tell if they are right.