Birthday blues for bitcoin as investors face year-on-year loss

[webfact]

Birthday blues for bitcoin as investors face year-on-year loss

By Tom Wilson

 

FILE PHOTO: A collection of Bitcoin (virtual currency) tokens are displayed in this picture illustration taken December 8, 2017. REUTERS/Benoit Tessier/Illustration/File Photo

 

LONDON (Reuters) - Bitcoin was heading towards a year-on-year loss on Wednesday, its 10th birthday, the first loss since last year's bull market, when the original and biggest digital coin muscled its way to worldwide attention with months of frenzied buying.

 

By 1300 GMT, bitcoin <BTC=BTSP> was trading at $6,263 on the BitStamp exchange, leaving investors who had bought it on Halloween 2017 facing yearly losses of nearly 3 percent.

 

A year ago, bitcoin closed at $6,443.22 as it tore towards a record high of near $20,000, hit in December.

 

That run, fuelled by frenzied buying by retail investors from South Korea to the United States, pushed bitcoin to calendar-year gains of over 1,300 percent.

 

Ten years ago, Satoshi Nakamoto, bitcoin's still-unidentified founder, released a white paper detailing the need for an online currency that could be used for payments without the involvement of a third party, such as a bank.

 

Traders and market participants said the Halloween milestone was inevitable, given losses of around 70 percent from bitcoin's peak and the continuing but incomplete shift towards investment by mainstream financial firms.

 

"The value mechanisms of crypto and bitcoin today are based more on underlying tech than hype and FOMO (fear of missing out)," said Josh Bramley, head trader at crypto wealth management firm Blockstars.

 

Growing use of blockchain - the distributed ledger technology that underpins bitcoin - is now powering valuations of the digital currency, he said, cautioning that some expectations for widespread use have not yet materialised.

 

Others said improvements to infrastructure such as custody services may allow mainstream investors who are wary of buying bitcoin to take positions.

 

"We see behind closed doors financial and non-financial institutions beavering away to create the infrastructure," said Ben Sebley, head of brokerage at NKB Group, a blockchain advisory and investment firm.

 

Bitcoin has endured year-on-year losses before, according to data from CryptoCompare, most recently in 2015-15.

 

Retail investors still account for a strong proportion of trading, market players said.

 

Investors who bet early on bitcoin and have stuck with it have faced a roller-coaster ride in its first decade. Many told Reuters they are optimistic that they are still onto a winner.

 

(Reporting by Tom Wilson)

 

-- © Copyright Reuters 2018-11-01

[Jonmarleesco]

8 hours ago, webfact said:

That run ... pushed bitcoin to calendar-year gains of over 1,300 percent.

Suspicious enough to suggest to anyone with a grain of common sense that it's ludicrously volatile.

[Hogs]

LOL I love these idiotic articles but you are right it is Volatile however those that actually ignored crap like this article bought every year since 2012 and many are Millionaires many times over, and even at $6000 they are still Multi Millionaires.

Bitcoin will hit even higher than $20,000 in the next 12 months 

And the NEGS will still be saying what they are saying and the smart guys will be banking Millions more.

 

[radiochaser]

I remember reading someplace that when bitcoin was first being sold, it was a little like Venezuelan.  Imagine a virtual wheelbarrow carrying the bitcoin to buy a bottle of soda.  

I imagine that those who understood and bought 10,000 bitcoins back then for pennies on the dollar, don't care too much that it went up to $20,000.00 and back down to $6400.00.  

The 10,000 bitcoins are still valued at $64,000,000.00!

 

 

[janclaes47]

16 hours ago, Hogs said:

Bitcoin will hit even higher than $20,000 in the next 12 months 

And the NEGS will still be saying what they are saying and the smart guys will be banking Millions more.

And Hogs will still think his dreams are reality, and post again that the $20.000 are for the following 12 months

[neo555]

BTC certainly will raise and so will the commissions of the interwallet transfers. 

In all the stagnation the core issues where not addressed, insecure wallets and high commissions.  

[phycokiller]

in my opinion its not particularly volatile, growth is pretty predictably exponential. but its does have the occasional rather large bubble tho