When something is getting very popular and demanded in a short period, we name it hype, and we can also expect the hype to calm down, and send the hyped things in the past. But, is there any chance that’s the destiny of cryptocurrencies? Are the huge and unexpected rises increasing the risk of crashing down the whole market? Knowing that there are thousands of cryptocurrencies, the market won’t die or disappear, but if Bitcoin is going down, it can cause huge changes in the whole network. But, history is showing us that every peak is followed by a drop, and every price drop is followed by a huge rise.
According to many sources, Bitcoin will eventually crash one day, and the question is when will that happen? Maybe today is the right time to start trading on thebitqtapp.com/de/login or similar services and use the chance to make some profit from it. If you don’t trust Bitcoins, there are plenty of altcoins that you can trade. These days its worth is over $58,000 and it may still go up. But, no one can predict what’s next. Will this peak stay long enough so everyone who invested, can make a profit off their coins?
Sometimes people love to consider this cryptocurrency as a safe asset, something like gold is for the fiat money, but on the other hand, BTC can’t be compared to any other currency. Most of them have huge expectations for their future, but no one can predict how things will go. Many experts expect price drops, and also, at this moment, people are getting more interested in Ethereum too.
Here are a few reasons why a crash is possible and expected, and of course, some of the predictions related to this market:
1. It’s very old and boring
Bitcoin was the first cryptocurrency to be invented, and its popularity is tightly related to its age. The price fluctuations are a result of the strong position it has at the blockchain and among the people. But, it’s easy to get bored of something that exists that long, and at the same time is too risky for investment. People are gaining, but also losing a lot of money due to their BTC investments and exchanges. The history isn’t much longer, but it’s enough for the people to get used to it, and look for something more exciting.
2. Plenty of cryptocurrencies are waiting for their time to shine
There are thousands of cryptocurrencies in the world, and some of them are known and commercial, others are in a phase of development, and sure there are passive coins, that still need to be re-invented, so they can become an active part of the market.
3. It’s still very volatile
This is a description often related to BTC as a concept. And we can say it’s like that if we see the all-time charts and price fluctuations. It wasn’t long ago when one Bitcoin was worth less than $6,000, and yes, we are talking about the last year. And now? It’s almost $60,000 and we can expect that it may grow up to $80,000 per coin. And we shouldn’t forget to mention that since 2013, the price hasn’t dropped more than 25% than the highest point in one day. The risks are more technical, and even though it won’t happen tomorrow, we can’t ignore the existing risk of BTC’s failing.
4. People find mining too difficult
The price of the BTC is related to the effort and consumed energy to be mined. As you probably know, it requires a powerful computer, electrical energy, and advanced cooling systems so the miners can mine a Bitcoin. Once they join the blockchain, they are solving cryptography tasks to “unlock” the next block and mine the current one, and they get a reward for their hard work. The other currencies hit lower peaks because they don’t require the same effort. But, since it’s too expensive right now for investment, and too challenging to mine, people can move to something else, that won’t bring the same profit but will be appropriate with the effort.
5. We can expect wild swings
Remember the time when it was worth less than $5,000? And now you see it can be ten times bigger, and it may go higher as time goes by. But, remember there are other digital tokens, currencies, and coins, that will have their chance to be recognizable, even earlier than we expect. If only one of the other cryptocurrencies hit a larger price, the “safe haven” status of the BTC will not be that safe anymore. Consider this market as a huge bubble that can fly without limitations, but at the first thorn, it may pop out and disappear forever.
6. Experts expect huge changes
It comes naturally to take control over the market, and that depends on the developers and investors. Some markets crash because they can’t handle the increased interest. This currency is interesting because it’s still “wild” and controversial, and even forbidden in some countries. But, as soon as it’s accepted in the whole world (we are talking about an ideal situation), and everyone can earn them and use them, the interest will drop, and it won’t be a surprise if it never hits the same rates as now.
The high demand will lead to a lack of coins available. Have you heard that there is a limited amount of Bitcoins available on the blockchain? Or, with numbers, only 21 million coins are available, and almost every year there is a process named halving, which is something like inflation, that is used to control the interest in this currency. Those days, the prices drop, and the network is calm, so the people can see and decide if they are still interested in being crypto traders.
The halving is followed by a more stable period. The last time it happened, the price was stable for months, and it was around $10,000 during the summer and early autumn in 2020, since the halving was in May last year. So, if it happens that all coins are already earned and spent, there would be no market for them to exist – which is the crash no one expects.