The CryptoCurrency market is witnessing, in particular, the "formation" of a continuous ascent and fall, and The Economist has published a report on the stages of forming bubbles that have led to the rise and fall of "Bitcoin".
Last month, the digital currency jumped close to twenty thousand dollars, but it recently landed to the lowest ten thousand dollars. This has made the investors "create" a bubble explosion at the moment.
So that we can understand the behavior and movements of the "Bitcoin" of the currency market, you should know how to form bubbles, and in the classical way, the historian--"Charles Kinlberger" indicated the bubbles consist of five stages, namely "displacement", "boom", "peak recovery", "financial pressure" and "abrupt transformation".
The "displacement" phase is a technical development that can be used to justify a new phase, such as the brightness of the "block Shin" technology star through which the digital coins are traded.
In the second stage of "prosperity", investors are attracted to a large and substantial to an asset — for example, to reach the "peak of recovery"-stage three, then the public is familiar with the great experience of Lima happening, and everyone speaks of them about the possibility of reaping more profits, as everybody speeds up towards the purchase, because they expect more ascent and the ability to sell at high levels.
In November November the "peak of recovery" was the stage where the demand for digital currencies was large, making global regulators study how to organize and circulate them, examine their risks and launch futures for "Bitcoin".
In the last stage, many doubts arise and negative news spreads, so some begin to reap the profits as much as possible, as in the case of "formation", when South Korea issued a decision to close down and tighten the digital exchanges against it.
When currency prices begin to fall, suspicion begins to infiltrate investors, especially those who have bought early, and aspire to reap profit in millions of dollars, but those who bought at high levels, they are the most regretful, because they are the most lost.
As of this moment, the investors have not reached the "financial squeeze" stage, but they have approached it, in the case of currencies digital, concerns about the security of this type of investment are growing, and this concern raises an intense sales wave, which leads to a rapid collapse of prices.
Some investors have begun to realize that a "Bitcoin" will never become a trading or an asset to be dealt with, it is not a "value store" as it is rumored.
Experts confirmed that digital currencies are only a hypothetical numeric asset, which is difficult to measure, so it is difficult to predict their continued ascent or landing, so many investors realize that, they have reached the stage of "abrupt transformation".
I hope you enjoyed reading this ARTICLE.
