Bitcoin Drop To Lowest Level At $5,000 For The First Time Since 2017

Bitcoin Drop To Lowest Level At $5,000 For The First Time Since 2017The value of Bitcoin has fallen below $5,000 (₦1,816,651) for the first time since October 2017.

The fall brought the total value of all Bitcoin in existence to below $87bn.

On Thursday, 15 November, Bitcoin Cash – an offshoot of Bitcoin – split into two different crypto-currencies, which are now in competition with each other.

And some observers have blamed this for creating turmoil in the crypto-currency markets, with many of the digital assets experiencing falls.

Bitcoin exchange Kraken said in a blog post that it regarded one of the two new Bitcoin Cash crypto-currencies – Bitcoin SV – as “an extremely risky investment”.

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Bitcoin is a notoriously volatile crypto-currency.

At its peak, in November 2017, it briefly hit $19,783 – which means the price has fallen by about 75%.

After the excitements of last year when the price soared to nearly $20,000 and then tumbled, Bitcoin has been rather dull and stable for much of 2018, settling between $6,000 and $7,000.

Sceptics like the economist Nouriel Roubini have predicted its demise, while the “hodlers” – those who promise to hold it come what may – remained confident it was heading “to the moon” where they would drive their “lambos”. (That’s- Lamborghinis for the uninitiated.)

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Now it is tumbling again and while it is never safe to ascribe any one cause to a market movement, bitter rifts in the community around a Bitcoin variant appear to be to blame.

Bitcoin Cash split off from Bitcoin last year after a dispute about its direction and split again a few days ago in another so-called hard fork.

Its value has dropped by almost 50% over the last week. It’s confusing but think of the People’s Front of Judea versus the Judean People’s Front and you will get the picture.

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The result is gloom right across the cryptocurrency sector with its many altcoins. We were told that the fact that there was a strict limit of 21 million bitcoins which could be mined guaranteed that this would be a strong and stable currency.

What nobody seemed to reckon with was that if you could start one cryptocurrency you could start dozens and chaos might then ensue. (BBC)

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