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Birthday blues for bitcoin as investors face year-on-year loss

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    On Wednesday, Bitcoin was on its way to a year-on-year loss. The day was its 10th birthday when it had experienced its first loss since the bull market of the last year, when this original and undoubtedly the biggest digital coin had paved its way to the attention of the world which continued with the frenzied buying.

    The Bitcoin BTC=BTSP was being traded at $6,263, by 1300 GMT, on the platform BitStamp Exhange thereby resulting in nearly 3 percent loss for the investors who had purchased these digital coins on Halloween.

    Bitcoin had closed at $6,443.22 in the past year and had risen to a new record of near $20,000, hit in December.

    The edge which Bitcoin possessed was due to the uncontrolled purchasing by the retail investors the United States to the South Korea which escalated the calendar year gain of the Bitcoin to 1,300 percent.

    Source: pictures.reuters

    Satoshi Nakamoto, founder of the Bitcoin developed it 10 years ago, releasing in a white paper about the requirement of a currency which is online and which can be used for paying sans the involvement of any third party such as banks.

    The market participants and investors have stated that the milestone of Bitcoin which it achieved on Halloween was inevitable because of the shifting of investments by the mainstream financial firms and also because of the 70 percent of losses from the peak of the Bitcoin.

    Josh Bramley who is the head trader at the Blockstars which is a wealth management firm stated that the growing use of the blockchain which is a new distributed ledger technology that has been underpinning Bitcoin is now at the powering end of the valuations of the digital money. He further cautioned people that certain expectations for the widespread use have not yet materialized.

    Source: Reuters, Forexfactory

     

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