Somehow the Bitcoin roller coaster just keeps climbing, leaving many people wondering when it will finally crest the top of the hill and tumble down the other side or if it may just climb right out of the atmosphere.
On Saturday the price of a single Bitcoin briefly crossed $19,700 on Coinbase, which is remarkable for the cryptocurrency that was trading for under $1,000 a this time last year and under $8,000 only a month ago. In just the past seven days, Bitcoin is up nearly 35 percent.
All along the way, there has been the talk of a Bitcoin bubble about to burst, and as the price approaches another psychological milestone at $20,000 the question of whether we’ve finally reached the peak is top of mind once again.
Bitcoin is notoriously volatile and it may not be well known that its price has actually crashed a handful of times in the past when it was less on the mainstream radar.
According to Dr Daniele Bianchi, Assistant Professor of Finance at the Warwick Business School in the U.K., those crashes were essentially due to a few types of events: hacking, regulatory interventions, technology updates and subsequent competition from other crypto-currencies.
Blockchain watchers surely remember the drama generated by the hacking of leading exchange Mt. Gox, which was subsequently shut down a few years later: both events caused the price of Bitcoin to crash at the time. China’s chilly regulatory approach towards Bitcoin has also taken a chunk out of its value on at least two occasions. Most recently, the failed fork (explained here) contributed to a price dip, although it didn’t last for long.
Contributor to Forbes Eric Mack Article Source