Bitcoin, as we know is a stunning currency which became very popular around the world.
If a massive fall in prices occurs, there would be both losers and winners. Experts such as Adrian Lee who teaches at the University of Technology in Sidney, says that the crash would unlikely have an influence on the global economy. This might be because not that much money is invested in Bitcoin as they were in the dot-com bubble. In the dot-com bubble, there were trillions of dollars spent compared to the billions of dollar in bitcoin.
Of course, we mentioned the losers before. There will be a financial meltdown for people who bought Bitcoin at a very wrong time; while other would be very happy they waited to buy it. The miners would probably get the biggest hit because they will lose a lot of money buying machines used to mine bitcoins. So could a bitcoin crash lead to a bigger global crash?
Another thing to have in mind is the effect on other cryptocurrencies. If there’s a large price drop, it can mean that other major alternatives such as Ethereum can gain more against this massive cryptocurrency. If the price of Bitcoin drops drastically, and the price of other currencies such as Ethereum is going up, that is because investors are massively investing in Ethereum and losing faith in Bitcoin. Ethereum has its advantages such as being able to easily switch from primary exchanges such as Coinbase and that is what makes it a very good option for a sanctuary cryptocurrency. If ethereum becomes one of the tools to manage payment systems’ business, the Ethereum market cap will reach up to $400 bln and one Ether token will be more than $4200.
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