Quote from: AlternativeFill on November 29, 2018, 06:18:32 PM

A certain disillusionment is affecting the crypto-active markets, while Bitcoin prices are flirting dangerously around $4,000. Since the record set in December 2017, its value has fallen by 78%, causing the American economist Nouriel Roubini, Bitcoin's well-known opponent, to say that "the mother of all bubbles has now burst". To say that he is going through a difficult period is a euphemism: it is no secret that a crypto winter has been installed. Nevertheless, Bitcoin's history has shown that every time he was promised death, it emerged stronger.

In traditional finance, a crash is generally defined as a fall of at least 10% in a single session. For Bitcoin, the volatility is such that it is not interesting to count them as it is customary to observe such variations.It is preferable to focus on correction periods, named after these more or less sudden downward movements, stopping a general upward trend, affecting assets that are probably overvalued. They may lack fundamental reasons or simply obey a profit-taking by investors. Here are all those that have exceeded 30%.

The worst correction observed occurred between November 2013 and January 2015, causing Bitcoin to lose 87% of its value in 411 days. This collapse is similar to the one currently underway, but 2014 was also marked by the bankruptcy of MtGox, at the time the world's leading trading platform (nearly 80% of flows). Many users had lost access to their Bitcoins, throwing a great wave of pessimism into the area. Nothing to do with 2018, as favorable news from Wall Street is accumulating.

The question now is how far will the 2018 correction go? Can it go to zero?

In the case of a company, even if it is bankrupt, the value of its walls or machinery prevents it from reaching this threshold. For Bitcoin, you have to ask yourself what its core value is. What value can this have in Europe? Almost nothing, given that our banking system works relatively well. But the question must be asked differently in other parts of the world, such as Venezuela, where Bitcoin is increasingly being used to escape hyperinflation in the bolivar (the IMF expects +1,000,000% over the year). In Caracas, it is perceived as a store of value and a way out of an authoritarian state.

Bitcoin's weakness lies in the effectiveness of its protocol, which allows you to send value online without the need of a trusted third party. The level of his course is ultimately of enormous importance.

Do not trust the banking system. If we knew how it works, it would be long gone. Bitcoin was invented to exclude intermediaries, with which he copes very well. Transactions are fast enough and without locks. I know a lot of people who use bitcoin to transfer funds to relatives and friends in other countries. You underestimate the digital asset too much. His success is yet to come. It is not necessary to listen to various experts on Finance. They don't know what they're dealing with. Bitcoin is unpredictable now. I firmly believe that bitcoin will take its place in the modern world and we will see its flourishing. However, I do not dare to analyze its value.

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