By Ryan Velez
Planning on making a million in a few days with Bitcoin and other cryptocurrencies? Your window may be closing, according to the Daily Mail. The driving force was South Korea saying that a potential government crackdown was still on the table, even though it’s not clear yet exactly what that would be.
The price of Ethereum, another digital currency, had slipped 7.8 percent to $1,190.45 as of 8.04am GMT.
According to CoinMarketCap, bitcoin was down by 24 percent at one point for the day.
Of the top 20 virtual currencies, Bitcoin has the smallest fall at a still-staggering 16 percent as of 1.25am EST on Wednesday.
Qtum, the 18th largest such currency, has posted the steepest day-over-day drop at 28 percent. An online petition on the presidential office’s website has drawn more than 210,000 requests from people asking the government not to ban trading in digital currencies.
‘We the citizens were able to have a happy dream that we had never had in South Korea thanks to cryptocurrency,’ the petition reads.
‘You may think you are protecting the public but we citizens think that the government is stealing our dream.
At this point, if you’re not already tired of hearing about cryptocurrency, you may be wondering what exactly causes the value of it to rise and fall so fast? Much of this has to do with its recency. Cryptocurrency is mostly divided among a very small group of people compared to conventional investments. This means that when one person decides to sell most of what they have, it could mark a massive shift, changing the value significantly.
What could add some stability? Lifehacker says that it could be not one thing, but several things. “The best bet for Bitcoin is that as it becomes more popular and more people buy it, these types of changes in value will go down for two main reasons. First, individual owners have less power over the price of Bitcoin, and, second, it creates stability since more people have a stake in the cryptocurrency.
The other possibility is that government regulation could help stabilize Bitcoin. In the short term, that could cause its value to drop drastically (like what happened in China and South Korea), but in the future, it could help calm down speculation and drive out the types of sketchy Bitcoin-related business that threatens to drag down the entire concept of cryptocurrencies.” What we just saw in South Korea may be this stabilization in action, which is disappointing to would-be Bitcoin billionaires.