Topic: [2018-01-01] Bitcoin Has Plunged by at Least 22% on 20 Separate Occasions (Read 135 times)

It is part of the game, and it will increase further, like it has done all the time. The main problem I see nowadays is that people tend to apply traditional market logic on Bitcoin's market, which means that an increase of +10% is a massive gain in traditional markets, while the majority of the Bitcoiners here don't even pay attention to such increases. In the same way it comes down to decreases. 10% decreases in this market are ~$1400 at current levels, which looks like it's a lot, but in terms of percentages, it's still a normal market movement for us. If traditional news sources make such a big problem out of such decreases, why don't they pay attention to high value stocks such as BRK-A? It's a near $300,000 stock, which means that even a 1% decrease translates into a $3000 lower value. They are hypocrites, especially in the way how they say that if Bitcoin goes down people will lose all their money.

Of course, such plunges were always a part of bitcoin. But I think people panicked this time around due to 2 reasons:

1) There wasn't this much interest in bitcoin before, so more people had invested their money in bitcoin, which led to a broader panic.

2)  Although the decrease in percentages was the same, since the price was so high this time around, the decrease in absolute numbers was huge in comparison to previous drops, so people panicked.

But it's all part of the game. I'm sure bitcoin's price will eventually pick back up.

Forget Superman, there's a new hero in town. For the retail investor, cryptocurrencies proved to be out of this world in 2017, with numerous virtual coins delivering four-, five-, and in some rarer instances six-digit percentage gains during the year. Though arguable, it could be the single-greatest year we've ever witnessed for any asset class throughout history.

Just how good were cryptocurrencies? At the end of 2016, the combined market cap of every single virtual coin combined equaled just $17.7 billion. However, by late December, the aggregate value of all cryptocurrencies combined had risen to as high as $654 billion. That's an increase in value of almost 3,600% in one year. Comparatively, the stock market has delivered historic returns of about 7% per year, inclusive of dividend reinvestment and adjusted for inflation.

However, bitcoin comes with more than just euphoria. It also comes with a ton of volatility. Retail investors are what predominantly drive its price, since institutional investors haven't been willing to trade on decentralized cryptocurrency exchanges. And it's no secret that retail investors tend to wear their emotions on their sleeves, leading to quick swings higher and lower in bitcoin. According to data aggregated by Mauldin Economics from Coindesk, bitcoin has plunged by a minimum of 22% from peak to trough 20 times since April 2013.

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