Although Bitcoin is up 12% today and seeking the $4,000 mark again, analysts agree that 2018 has not been a stellar year for the best known of all cryptocurrencies.
2018 was in fact nothing short of a disaster year for bitcoin investors who decided in January to start getting a foothold into the cryptocurrency market.
The currency is now 80 percent below the peak value of $ 20,000 at the end of last year. Other crypto coins, along with bitcoin, also went down in the carnage; and even more so the last few weeks when the coin lost no less than a third of its value and came out just under $ 4,000.
On Monday, $ 3,500 was tapped and a slight recovery followed ever since then.
Interrogated by the bible of all business dailies, the Wall Street Journal, a crypto trader said it was nothing less than "mass panic."
Speculators are withdrawing their investments whilst the miners, people and companies that have made their computers available for the complex calculations with which the digital coins could enter the market are losing interest. Only a handful of true believers remain.
2011
However, this year’s crash is not even the biggest for Bitcoin. In 2011, only one year after trading in the cryptocurrency started, it already experienced a dramatic 93 percent fall.
Again in between 2013 and 2015, Bitcoin lost 84 percent of its value during a twenty month period.
The Real Reason
However, techies and amateurs of crypto in Japan have been sending each other messages on the many anonymous boards over there (like 5chan and 8chan) where they explained a by now popular hypothesis.
Basically, what happened is “Bitcoin Cash” split into two coins a few weeks ago (Bitcoin Cash and Bitcoin Cash SV) via a so-called hard fork.
Each of these two coins now needs to compete against each other to see who will be dominant. As soon as the winner secures the chain, the loser will be done for and Bitcoin will go up again.
Sort of a ‘way of the Samurai’ fight as beautifully described by Yamamoto Tsunetomo in ‘Hagakure.’
Related coverage:
Japan - Shinoma Continues Development Of Susucoin Freedom Of Speech Cryptocurrency.
Hence, you now have two factions fighting by buying lots and lots of cash power to back their respective preferred coin. They used a lot of BTC to do that, selling hard and crashing the Bitcoin price along the way.
What is very interesting is that the person who spearheaded this war was a user known as “Craig Wright”
“Craig Wright” is self-allegedly the real identity behind Satoshi Nakamoto, the unidentified original inventor of Bitcoin.
Analysts presume that as he probably had access to loads of Bitcoin, Mr. Nakamoto dumped Bitcoin to buy himself power for his preferred fork of Bitcoin cash, however, it is unknown which of the two factions he wants to win.
Source:
https://www.coindesk.com/price/bitcoin
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