As with any investment, Bitcoin values can fluctuate. Bitcoin value has seen tremendous fluctuations in its value even though it has been in the market for a very short time. Subject to high volume trades on stock exchanges, Bitcoin has a high sensitivity to "news". According to the CFPB, the price of bitcoins dropped 61% in a single day in 2013 and fell by 80% in 2014, setting a one-day price drop record.
If fewer people start accepting Bitcoin as their currency; Bitcoin and similar digital currencies may loose value. There was speculation that the "Bitcoin bubble" burst when Bitcoin fell after reaching its all-time high during the cryptocurrency's rise in late 2017 and early 2018. There is already a lot of competition, but Bitcoin maintains its advantage among hundreds of digital currencies, thanks to brand awareness and venture capital. However, when it comes to digital currencies, a technological breakthrough by competitors is always a threat.
- CandleFocus Editor
Market Risk