Bitcoin was one of the hottest topics in 2017 and it shows no signs of slowing down this year. The cryptocurrency is still dominating headlines and sparking debate as to whether or not it’s a bubble. Is bitcoin a legitimate currency or a bubble waiting to burst? In this post, we’ll highlight five reasons why bitcoin will crash, and dive deeper into what happens when a bubble bursts.
1. The breakdown of worldwide trust in bitcoin
Bitcoin is built on a trustless system. That is, there is no central authority (like a government) that is in charge of Bitcoin and ensuring its stability. Instead, it relies on the integrity of the system itself. In a trustless system, every participant is responsible for ensuring the system’s integrity. When one participant fails to do so, the system falls apart. In the case of Bitcoin, this is what is called a “crash.” A breakdown in trust is the primary reason why Bitcoin crashes.
2. Some people are still skeptical about its existence
Just like any other investment, there is always the risk of it crashing. Here are five reasons why bitcoin might crash:
3. The current bitcoin price is literally sky high
Bitcoin is currently trading at record highs, but that doesn’t mean it’s immune to a crash. In fact, there are several reasons why it’s only a matter of time before the price falls.
4. The price is incredibly volatile
Bitcoin is incredibly volatile. Prices can rise and fall at a moment’s notice, and it’s not uncommon for the value of a bitcoin to swing by hundreds (or even thousands) of dollars in a single day. This level of volatility is simply too risky for most people, and it’s one of the main reasons why bitcoin is likely to crash in the future.
5. If the crash does happen, when is the best/worst time to buy in?
1. Bitcoin is not regulated by governments or banks. 2. Bitcoin is not backed by anything. 3. Bitcoin is not a physical currency. 4. Bitcoin is not widely accepted. 5. If the crash does happen, when is the best/worst time to buy in?
The crash of Bitcoin is inevitable and you should seriously consider buying when it does because when the crash happens, people will try to unload their bitcoin as quickly as possible. This means that there could be a huge supply in the market which would push down prices and create an opportunity for someone who missed out on getting into bitcoin earlier than they expected. If you’re considering investing in cryptocurrencies at all, we recommend doing some research first so that you know what’s going on in the world of digital currency before taking action.