The Perfect Storm Hitting Bitcoin…and How You Can Weather It
Here’s a simple quiz question for you.
Which asset…that could help shape Australia’s economic future…has plunged in price this year by more than 45%?
If you said ‘iron ore’…you’re wrong.
The answer is bitcoin.
Yes, bitcoin…the currency of choice for thousands of internet-savvy people.
The digital cryptocurrency’s value slipped below US$400 per coin late last week. It slumped to an intraday low of US$380.75 on Friday.
The price action has made fools out of the ‘smartest men in the room’. Investors who bought bitcoins up to November’s US$1,145 peak are licking their wounds.
So what’s gone wrong?
Well, I can see several reasons why bitcoin’s value has cooled off.
Does that make now a good time to think about a bitcoin investment?
Well, that depends…
Bitcoin suffered a stormy end to last week. You can see it in this seven-day chart of the cryptocurrency’s value in US dollars.
This post was published at Tech Insider on September 22, 2014.