Cryptocurrency has metamorphosed the perception of stocks and investment. Cryptocurrencies like Bitcoin has eased the process of financial investment and shareholding, which had once been impossible except for a privileged few who had access to the share and trading market. However, investment in cryptocurrencies is associated with its own set of risks and dilemmas. The erratic volatility and slumps of the prices of cryptocurrencies like Bitcoin, Ethereum and Ripple, has raised a lot of concern amongst investors on whether to trust these currencies with long-term investment or not.
Even though cryptocurrency specialists are trying hard to fix on a particular price, or at least predict a pattern in the rising and falling prices of cryptocurrencies for the year 2018, yet one thing is becoming increasingly clear to them- It is impossible to forecast the market price of cryptocurrencies like Bitcoin, Ethereum, Ripple, Dash etc. Investors witnessed with alarm, as the prices skyrocketed within a month at the end of 2017.
Every cryptocurrency coin is linked with a speculated price, unlike Ripple that is financially sponsored by an investment company. In contrast to traditional shares and stocks, the price of Bitcoin, Ethereum vary erratically on the basis of current scenarios or even rumors.
The current price of Bitcoin is 10195 dollars which is much lesser than the price it reached in 2017 of about 20000 dollars but is about 777.00% higher than the price it had on the same day of 2017. Based on this perspective, cryptocurrency investment is still quite profitable, even though the volatility acts as a constant dampener. The price of Bitcoin flourishes and rises as it operates independently of banking and governmental regulations paired with its ease of accessibility and anonymity of development and design.
However, the Chinese government has decided to charge heavy tax on cryptocurrency mining farms. China has also instituted a ban on cryptocurrency exchanges and ICOs.