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Bitcoin price falls and lost passwords sweep the market

Bitcoin price falls and lost passwords sweep the market

New York – After a long period of major financial growth, the world’s largest cryptocurrency, Bitcoin, is now in free fall. Bitcoin is known to be highly volatile. At one time, Bitcoin reached a peak of a $41,962 valuation  within three days. Now, however, Bitcoin is experiencing a sudden drop in value just above the $30,000 threshold. 

Bitcoin is experiencing losses of more than 20 % of its value,  wiping $130 billion off the market capitalization. Crypto investors could potentially lose all their money. This kind of volatility in cryptocurrencies makes price valuations difficult while significantly increasing the potential consumer risks.

So how volatile is Bitcoin’s price?

Bitcoin Price

Since the arrival of Bitcoins, do such unprecedented rises cause bubbles in the market?  Does the volatility actually clarify the role cryptocurrencies could play in the financial ecosystem? 

“Only professional investors with a long-term view on the underlying technology should have exposure to this asset class. They also need high-risk tolerance levels and, importantly, never lose sight of the forest for the trees,” Antoly Crachilov, CEO of asset management firm Nickel Digital, told reporters.

Something similar happened back in 2017. After reaching highs of $19,783.2,  Bitcoin prices fell below $8,000 in just two months. 60 percent of the investment values were wiped out. In all likelihood, history will repeat itself this time.

Lost Password

Meanwhile, in another major turn of events, one single loss of a password has put millions of Bitcoin investments at risk. Stefan Thomas, a German-born programmer, has merely two guesses left to figure out a password worth about $220 million. Thomas needs to unlock a small hard drive known as Iron-Monkey. Iron Monkey contains private keys to a digital wallet holding 7,002 Bitcoin.

At this time, however, the price of Bitcoin, overall, is still 50 percent more than what it was a month back. Are these fluctuations natural and will they increase in frequency?

Thumbnail Credits : Getty Images

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Afia is a lawyer, journalist, an avid traveler, an avid reader, a foodie, and an amateur singer. She enjoys instrumental music with her glass of wine 🙂

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