Cryptocurrency
Bitcoin Faces a Crisis After a Long Slide in Price via @barronsonline
As reported in Saturday’s edition of Barron’s, “A year ago, Bitcoin was the talk of Thanksgiving dinner tables across the country. More than 100,000 people created new Coinbase trading accounts in just three days over the holiday week, the company said at the time. “Wall Street quickly ramped up its ambitions as well, working feverishly […]
As reported in Saturday’s edition of Barron’s, “A year ago, Bitcoin was the talk of Thanksgiving dinner tables across the country. More than 100,000 people created new Coinbase trading accounts in just three days over the holiday week, the company said at the time.
“Wall Street quickly ramped up its ambitions as well, working feverishly to construct a cryptocurrency trading infrastructure.
“What has happened since is a nightmare reworking of a famous line from the Kevin Costner movie Field of Dreams: If you build it, they won’t come.
“A soul-crushing plunge in the value of Bitcoin seems to have dashed hopes for the cryptocurrency to become an accepted asset class. From a December 2017 high of $19,700, the cryptocurrency traded at $4,300 on Friday—a decline of 78%.
“Those who opened cryptocurrency trading accounts over the past year are underwater. And most financial institutions are quiet about their Bitcoin ambitions. The initial coin offerings that were touted as the most exciting venture-capital investments of 2017 have fizzled out, too.
“Now, Bitcoin is facing an existential crisis: What if no one wants to trade the stuff?”