Bitcoin’s Correction Could Well Have Shaken Out Potentially Damaging Investors

There have been a number of times in Bitcoin’s history where people have thought that mainstream adoption had happened. However, the lead up to last December’s $20,000 high saw Bitcoin hit some really big adoption milestones.

Through the memes and reports on mainstream news, Bitcoin was the word on everyone’s lips, and it was even near the summit of Google searches. This saw a new breed of investor entering the crypto community, but a dangerous one.

Moneymakers

The hype surrounding Bitcoin was all aimed at the incredible growth that the digital currency had experienced since it began less than 10 years ago. People were unable to keep away from the chance to double, triple, and so on, their money in a matter of weeks, rather than years as would be the case in normal investments.

Everyone from pensioner to teenagers were joining the Bitcoin craze with the hopes of making some money off their investment. The actual technology, or even the way it worked, was hardly a priority. These dangerous views of Bitcoin were now propping up a value in the coin that was probably far too high, as it smashed through the thousand dollar barriers with ease through November and December.

A sobering correction

Bitcoin, having been founded by, and upon, people who believed in the technology, and the potential to be a disruptive force to challenge the banking industry, was now teetering on a pile of uneducated speculators. People who were new to the scene were used to only upward trends and huge returns yet they were not ready for the crash.

As the crash began and is still going on, slicing off more than half the value of Bitcoin, these same speculators have been flushed out of the system. The sell off from such investors has played a big part in the fall of Bitcoin price, but it has shaken out more than just the so-called weak hands…

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