If you haven’t been paying attention to Bitcoin (BTCUSD) lately, I can’t blame you, but the cryptocurrency made news yesterday as the cost of a Bitcoin dropped below $6000 for the first time since 2017.
Bitcoin lost more than 10% of its value in less than 45 minutes after a tweet from one of Bitcoin’s main scientists alleged that he planned to cause Bitcoin’s price to drop to $1000 in a battle with another cryptocurrency company planning to launch a variation of a different crypto he is currently working on.
Cryptocurrencies can basically just be created from nothing with their value determined by the people who hold on to the “coins.” In other words, the value is entirely intrinsic with no real-world earnings or other basis to determine how much a cryptocurrency should be worth.
The two cryptos that are causing this strife are Bitcoin Cash (BCHUSD), itself a variation on Bitcoin, and a new variation of Bitcoin Cash called a “fork” – basically a direct copy of the original crypto with additional features added to it – scheduled to release later this week.
The two creators are fighting over which one should be more successful, and they’re using the price of Bitcoin to do this.
If Bitcoin can’t recover from these levels, Get Irked will be exiting the cryptocurrency space for the foreseeable future. Demonstrating how the value of this cryptocurrency with a market capacity of over $100 billion can be manipulated by the whims of a few individuals will prevent the SEC from approving any Exchange Traded Fund (ETF) and will also scare any new investors from the space.
Stick to stocks, bonds, and other investments with true real-world value. Cryptocurrencies are far from ready for prime-time.
Disclaimer: Eric "Irk" Jacobson and all other Get Irked contributors are not investment or financial advisers. All strategies, trading ideas, and other information presented comes from non-professional, amateur investors and traders sharing techniques and ideas for general information purposes.
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