BTC Plummets Again, Gets Community Worried
The price of Bitcoin (BTC) dropped 12 percent yesterday, which has gotten the community worried about their investment.
While BTC’s price has been in the range of 3,550 USD to 4,200 USD over the past month, a 12 percent drop is no reason to rest assured. Other cryptocurrencies also dropped in prices but the change in BTC was something that got everyone worried the most.
XRP and Ethereum (ETH) are still competing for the position of the second largest cryptocurrency in the market in terms of market cap. At the time of writing this article, XRP had that title, but it wouldn’t be surprising if the wind blows in the opposite direction.
The drop might be a result of the government shutdown of Consensus Bureau which provided economic data such as GDP and retail sales. This data was crucial for investors and economists. The unavailability of this data would significantly affect them.
There had been a lot of speculation about whether IBM’s Q System One—which is the first commercially available quantum computer in the world—would threaten BTC. According to a video by Andreas Antonopoulos, the threat of quantum computing is only real when it is available to just one actor and not to the others. And even if a person manages to develop a supercomputer of his or her own, Bitcoin is way too small a target to waste the supercomputer’s processing power on. Hence there is no threat, but the discussion is still going on and it might be affecting the price of BTC.
While the conditions prevalent in the crypto market are pretty bleak right now, the volatility of the market is a good enough reason to hope that the market would correct itself back to normal soon. A few cryptocurrencies have already started showing signs of recovery. Others, however, are still in the red.