It appears that the day every Bitcoin investor dreads has finally arrived as economists warn that the cryptocurrency bubble is bursting and it has a long way to go. Many are now selling off their vast digital fortunes in favor of more traditional investments like precious metals.
Long before the cryptocurrency’s price began to lose its value, many financial experts were already echoing dire warnings that it has all the hallmarks of a classic speculative bubble. Nevertheless, as prices continued to surge many people placed their financial future on the line for a chance to strike it rich in this 21st Century gold rush.
However, as governments all over the world begin cracking down on Bitcoin and other cryotocurrencies, their value began to decline. The recent announcement made South Korea’s government ban digital currency exchanges in the country, caused massive sell-offs that rocked the market to its core, losing $200 billion off its market capitalization over the course of a few days.
Despite this, however, many cryptocurrency advocates still hold on to the idea that digital currencies can be a viable replacement to fiat currencies. This is something Capital Economics dismissed saying that claims Bitcoin and its imitators could replace established currencies as “rubbish.”
“Most people are buying Bitcoin, not because of a belief in its future as a global currency, but because they expect it to rise in value,” Capital’s…
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