All that is experiencing takeoff, survive and the period of the fall. It is this situation that happens with Bitcoin. Last month, the price of cryptocurrency reached a peak of more than 19,000 dollars. Now Bitcoin on some exchanges is traded at a price below $ 10,000.
To understand what is happening, it is worth turning to the classical model of the investment bubble of Gimana Minsky. The researcher identifies five stages of the bubble: displacement, boom, euphoria, financial crisis and rejection.
Repression is a technological breakthrough that can justify a "new era" - the construction of a railway, canals, the invention of the Internet, or technology of blockchain. During the boom, more and more investors are joining this field. At a certain stage, we reach euphoria, when the boom becomes widely known to the public and there are active conversations that people earn millions on this. This stage was reached in November.
At the stage of euphoria people buy because others have already bought it, and they expect the opportunity to quickly sell the asset at a higher price. For some time this trend is intensifying itself. However, at a certain stage, doubts begin, someone tries to collect profits, as yet there is a possibility, there is bad news. For Bitcoin, such news could have been the message that the South Korean authorities, where the bids were very active, are planning to introduce restrictive measures.
The stage of the "crisis" has not yet come, but, perhaps, it is already approaching. Investors already now believe that Bitcoin has not become a means of payment for daily transactions, or a reliable means of saving. Due to the spread of various cryptocurrencies, the limited supply factor also no longer exists.
Bitcoin was once very popular and not in vain. He gave investors what they were looking for - stable growth and a unique offer. Now Bitcoin steadily goes to his collapse. Investors understand this and panic search for ways to invest further away from the cryptocurrency. In this case, venture funds become a haven. The fund is a stable enterprise and a lot of advantages for any investor. Hypercube Ventures can be this excellent example. Offering investment in the most profitable projects on the market, the Hypercube Ventures fund allows investors not to worry about the future and to receive a stable income.
As we reported earlier, China is going to ban Bitcoin mining.