One of the essential features of the infamous booming crypto-asset markets is this chronic decoupling of market pricing from the intrinsic value: while the number of countries accepting bitcoin is growing gradually, it’s still way, way below the levels of penetration that would justify so many people owning it for functional purposes.
In other words, people are investing in virtual currencies because their hunger to earn a lot of money, not because they see any essential utility in owning any of those digital currencies and hard because they plan to stay invested in bitcoin for a long time (read years, not months). Ask any 3 of cryptocurrencies investors in 2017 – what is your primary motivation?
As a conclusion from the previous points, it is easier to see why bitcoin prices tend to drop down. Bitcoin, just like its underlying mechanism, the blockchain, is still in its infancy; although the latter contains the promise of unlocking tremendous value in almost every sector of the economy, expert valuations and objective observations indicate that at the moment it’s little more than yet another speculative bet that gained massive liquidity.
Since the bitcoin price arguably has nearly nothing to do with its intrinsic value at the moment, the market is at the sole discretion of the unstable equilibrium between the speculative supply and demand.
If a new wave of people is looking for a visionary investment and invest in cryptocurrencies and decide to buy, the digital currency surge into the stratosphere, bringing about abnormal returns to “early investors.” This has created a new need for a stable investment without neglecting the hunger for earning money; DomusCoins has mixed between both values which its placement doesn’t affect with the clashes in cryptocurrencies markets and the dropping prices.
Topic: WHAT IS BEHIND DIGITAL CURRENCIES DROPPING? (Read 193 times)