Is the Bitcoin bubble about to burst following 20% plunge?
Bitcoin fell almost 20% in the space of two days after its spectacular 2020 rally.
The cryptocurrency's price recovered to around $36,000 on Tuesday after dropping to $30,000 on Monday.
This follows a year in which Bitcoin's value almost quadrupled to around $40,000.
Is this scenario a repeat of the 2017 bubble?
According to some experts this time is very different - Bitcoin is going institutional.
"This time it is not inexperienced retail investors – your neighbour, your aunt, your running buddy – who are buying bitcoin. More and more, it is the financial bigshots".
That's the word from global fintech fundi Lex Sokoling from blockchain company Consensys.
The Money Show's Bruce Whitfield gets some insight from Paul Mitchell, blockchain and cryptocurrency expert.
Supply and demand... Bitcoin's supply is capped at 21 million electronically by the programming. There are currently about 18 million in circulation and a lot of those are just being held by people.Paul Mitchell, Blockchain and cryptocurrency expert
A lot of institutional adoptions - that's the conventional wisdom about what's driving this current bullrun.Paul Mitchell, Blockchain and cryptocurrency expert
You've got big companies especially in the US, for example insurer MassMutual put $100 million into Bitcoin and at the same time bought into a Bitcoin infrastructure business.Paul Mitchell, Blockchain and cryptocurrency expert
They're seeing an increase in confidence in other people doing the same thing.Paul Mitchell, Blockchain and cryptocurrency expert
It comes down to a collective belief that something has value, says Mitchell.
It's just the beginning of this... It's not just a kind of magical Internet money...Paul Mitchell, Blockchain and cryptocurrency expert
For more detail, take a listen:
Source : https://pixabay.com/photos/blockchain-technology-smart-bitcoin-3446557/