Bitcoin takes further plunge Tuesday
The volatile nature of cryptocurrencies is again in the spotlight Tuesday as Bitcoin hit a 2018 low below $4,500.
Considering Bitcoin was valued at more than $19,500 in December, the decline this year has been severe; but that’s why investors should consider the opportunity according to a global financial advisory executive.
Nigel Green, founder and CEO of deVere Group says that the new wave of volatility will be used by investors as a buying opportunity.
“Just a few weeks ago crypto traders were airing concerns about the lack of volatility in the crypto market. Now volatility is back and many savvy investors will be using this as a major buying opportunity, perhaps the last one of 2018,” Green says. “Savvy investors understand that digital currencies are the future of money and, as such, they will be capitalizing on the lower prices in order to build their portfolios and shore-up their positions.”
Bitcoin’s woes continue with its selloff now the third-biggest it has ever faced https://t.co/0fv20rvrHJ pic.twitter.com/RRnnUoSvLz
— Bloomberg Crypto (@crypto) November 20, 2018
Why the turbulence?
Green says that there are several factors in play that are driving the current volatility.
Firstly, Bitcoin Cash was launched recently as a ‘fork’ from the original currency, now known as Bitcoin ABC. This creates volatility as investors are faced with two options to choose.
“Second is the recent scrutiny of the SEC, the U.S. financial regulator. However, I have long supported and called for regulation of the crypto sector. Indeed, regulation of the digital currencies is now, I believe, inevitable and will in the longer term give investors even more protection, driving confidence and prices in the burgeoning market,” says Green.
Green also notes that the herd mentality of some investors is also a factor.
He predicts that there could be further decline in the coming days but that the general trend for Bitcoin is upward.
“Crypto cynics are using this current wave of volatility to knock digital currencies. Whether it is Bitcoin, or any of the current generation of coins, or not, cryptocurrencies are here to stay,” enthuses Green.
He liked the view of cryptos held by financial traditionalists as similar to how traditional stores used to view online retailers.
“But with their hands in the sand they are failing to see that cryptocurrencies have already changed forever the way the world handles money, makes transactions, does business, and manages assets,” he concludes.
