After an absolutely phenomenal 2017, Bitcoin is getting off to a brutal start in 2018. January, its worst monthly decline in three years, according to the Wall Street Live bitcoin value. And the value of Bitcoin has been cut roughly in half compared to its all-time high in late 2017. January 2015, when the cryptocurrency’s value decreased 32.
A variety of factors seem to be causing the current Bitcoin crash, as well as the selloff of cryptocurrencies in general. The most obvious explanation is simply that Bitcoin is based on speculation—and all speculative bubbles burst. Bitcoin speculators may also be having doubts about the cryptocurrency’s future because countries like China and South Korea have cracked down on cryptocurrency trading lately. 50 days, its value is still much higher than it was compared to most of 2017. Money may receive compensation for some links to products and services on this website.
Offers may be subject to change without notice. Quotes delayed at least 15 minutes. Market data provided by Interactive Data. ETF and Mutual Fund data provided by Morningstar, Inc. P Index data is the property of Chicago Mercantile Exchange Inc. Powered and implemented by Interactive Data Managed Solutions. A highly anticipated software client that aims to make bitcoin payments faster and cheaper went live on Thursday.
The Lightning Network Daemon creates a network on top of the bitcoin blockchain that expedites transactions, and launched in a beta form Thursday. Bitcoin supporters believe that the network has the potential to help the cryptocurrency achieve mass adoption. Bitcoin has struggled in recent months with slow and high-fee transactions, which make it harder for bitcoin to achieve mainstream popularity. 2 a transaction, which is still substantially higher than the pennies it cost to transfer bitcoin in 2016. The Lightning Network aims to bring those costs down. 20,000 a coin at its peak.
Other cryptocurrencies similarly ballooned in value. Lawmakers and regulators, spurred by the uptick in public attention, have begun to scrutinize the currency. Regulators at the Commodities Futures Trading Commission and the Securities and Exchange Commission have said that they’re examining the field closely and have begun to ramp up regulation. Will voters punish Trump over tariffs? Sign up for our daily email. Bitcoin is a new digital currency that is open source, distributed, and has no central issuing authority.