Bitcoin’s (BTC) tenuous grip on stability shattered as the cryptocurrency’s value plunged below $4,000 per coin. Down from a high of over $20k, this marks the currency’s lowest value since last year – and a percentage loss of over 80%. This is dire news for the cryptocurrency market at large, shattering confidence even among many of the fanatical hold outs. However, this is far from the first time that the market has suffered near total losses, and long-term cryptocurrency enthusiasts are conditioned to withstand volatility.
While the financial value of Bitcoin is rapidly dropping, there is an inversely proportional spike in interest. Google’s trend measurements put Bitcoin search interest at an equivalent level to this past April – when the market was only beginning to cool. This may herald returning investors that cannot pass up bargain-basement prices on top cryptocurrencies. However, the continuing free fall makes re-entering the market a dangerous proposition.
Buy Low, Sell High
If they can precisely time their re-entry, they stand to make a considerable fortune – volatility favors this type of action. Further, many of the larger blockchain based projects never slowed despite the bear market. Several of these are coming to fruition, including the much touted Bakkt. Compared with the last array of aimless blockchain products, Bakkt and its contemporaries leverage the technology in a way that makes sense.
Ohio Begins Accepting Bitcoin for Taxes
In other bright news for cryptocurrency enthusiasts, the state of Ohio will officially accept Bitcoin as payment for taxes. Envisioned as the start of a push for more tech investment, the new laws will allow corporations and individuals to pay their tax burden in Bitcoin. While Ohio is not the first state to consider such an initiative, it is the first to succeed in fully passing said legislature. Arizona’s similar attempt passed the state House but ultimately died on the floor of the Senate through the addition of strangling amendments.
Article By: Adam Stone