Discussing the price of Bitcoin is one of the hottest topics in the cryptocurrency’s community – if not the hottest. And it makes sense, because the currency’s value is basically its defining factor on the market, so everyone with an investment into Bitcoin would surely be interested in finding out what direction the market is moving in, and what they can expect from the future. However, as some experts have been pointing out, analyzing the trends in this market might be a bit less fruitful than performing the same type of analysis on other, more established currencies.
Predictions get thrown around quite often, some of them a bit more extreme than others. For example, recently it was alleged that December 22 would be a big date for the cryptocurrency, seeing a major price spike. And yet, that date came and passed, and nothing happened. In the morning, the price of Bitcoin was actually on a rise – although this trend quickly ended a few hours later and the currency returned to its standard state of up-and-down fluctuations.
It’s worth noting that Jim Frederickson, the trader who made the December 22 prediction, seems to have backtracked on his claims as he’s removed the forecast from his publication. He hasn’t made a specific comment about the situation yet, although there’s not much he could probably say at this point.
On the other hand, some analysts have been predicting that the price of Bitcoin might start going down, all the way to $304 if the predictions are right. These fluctuations aren’t going to be that important in the long run, however, according to the same predictions, because if the currency eventually gets to $1,000 per coin, it won’t be very significant whether a trader has bought his coins at $300 or $350.
In the current situation, predictions about Bitcoin prices should be taken with a big grain of salt, and traders are encouraged to do as much original research as their schedules allow for, if they want to stay on top of the game. The problem partly lies in the fact that the huge popularity of Bitcoin, combined with the relatively large number of financially illiterate people joining the trading, has spawned many scammers trying to give people bad ideas about what to do with their money.
In this regard, it’s not much different from a regular financial market, but the lack of strict regulation over Bitcoins does make the situation considerably different, and the risk involved is certainly higher for everyone in the game. And yet, the main proponents of Bitcoin are of the opinion that regulation would be a bad thing for the cryptocurrency.