Bitcoin Plummets after Moving Past $10,000 Mark

The price of bitcoin broke through the $10,000 mark on Wednesday, prompting debates about the virtual currency’s actual stability. It increased tenfold in value this year.

Bitcoin gold surrounded by silver

The coin is surrounded by other cryptocurrencies. It stands out as the only one made of gold, surrounded by other silver ones.

Bitcoin consecutively surpassed two levels. After moving past $10,000, it immediately broke through $11,000 before plummeting from those lofty levels.

The price of one bitcoin was around $9,800 and even reached as low as $9,300 on Wednesday afternoon. This price compared from the $1,000 value it had at the beginning of the year.

The sudden rise of the cryptocurrency led to a division in the financial community regarding their merits and when its value might crash back down.

Bitcoin Critics

Goldman Sachs CEO, Lloyd Blankfein is the latest addition to the high-profile critics of bitcoin.

“Something that moves 20% [overnight] does not feel like a currency. It is a vehicle to perpetrate fraud,” stated Blankfein.

His comments followed the highly volatile trading session that transpired for the digital currency. This was when bitcoin plunged by over $2,000 within 24 hours.

Blankfein then continued, saying that Goldman Sachs did not need a bitcoin strategy. He added that in order for them to get involved in the trading of the digital currency, bitcoin must first be a lot less volatile and a lot more liquid.

“When do I have to have a bitcoin strategy? Not today. Life must be really rosy if that is what we are talking about,” Blankfein stated. “Bitcoin is not for me. A lot of things that have not been for me in the past 20 years have worked out, but I am not guessing that this will work out.”

Other high-profile critics of bitcoin include JPMorgan Chase’s CEO James Dimon, who called the cryptocurrency a “fraud”. Citing that seeing as it isn’t based in anything other than software code, and is not backed by any monetary authority; it is therefore a “fraud.”

On the other hand, the International Monetary Fund chief Christine Lagarde took bitcoin’s side. She said that virtual currencies must not be dismissed seeing as they can have useful applications. Adding that they can be used a way of paying in countries with unstable currencies.

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Categories: Cryptocurrency, News

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