{"id":8447,"date":"2019-01-04T13:17:04","date_gmt":"2019-01-04T18:17:04","guid":{"rendered":"http:\/\/162.241.156.118\/~azzadasset\/?p=8447"},"modified":"2024-04-15T13:00:01","modified_gmt":"2024-04-15T13:00:01","slug":"the-bitcoin-bust-of-2018","status":"publish","type":"post","link":"https:\/\/intelliserver.net\/wordpress\/market-commentary\/the-bitcoin-bust-of-2018\/","title":{"rendered":"The Bitcoin bust of 2018"},"content":{"rendered":"<p><img fetchpriority=\"high\" decoding=\"async\" id=\"longdesc-return-5851\" class=\"alignright wp-image-5851 size-medium\" tabindex=\"-1\" title=\"Bitcoin\" src=\"https:\/\/intelliserver.net\/wordpress\/wp-content\/uploads\/2017\/09\/Bitcoin-300x180.jpg\" alt=\"Bitcoin\" width=\"300\" height=\"180\" longdesc=\"http:\/\/162.241.156.118\/~azzadasset?longdesc=5851&amp;referrer=8447\" srcset=\"https:\/\/intelliserver.net\/wordpress\/wp-content\/uploads\/2017\/09\/Bitcoin-300x180.jpg 300w, https:\/\/intelliserver.net\/wordpress\/wp-content\/uploads\/2017\/09\/Bitcoin-1024x614.jpg 1024w, https:\/\/intelliserver.net\/wordpress\/wp-content\/uploads\/2017\/09\/Bitcoin-768x461.jpg 768w, https:\/\/intelliserver.net\/wordpress\/wp-content\/uploads\/2017\/09\/Bitcoin-1536x922.jpg 1536w, https:\/\/intelliserver.net\/wordpress\/wp-content\/uploads\/2017\/09\/Bitcoin-2048x1229.jpg 2048w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>If you thought investing in stocks was bad in 2018, be glad you stayed away from Bitcoin.<\/p>\n<p>While stock market investors are still nursing their wounds from a down year in 2018, Bitcoin investors were devastated. The cryptocurrency has fallen considerably from the dizzying heights it reached in December 2017. As of this writing, Bitcoin has lost 80% of its value since the beginning of 2018, while the total market value of all cryptocurrency had fallen about 87%.<\/p>\n<p>Part of the problem is that Bitcoin is hard to value, and its value fluctuates wildly&#8211;even worse than stocks did in December. A typical asset has a set of cash flows, and its value is driven by investors\u2019 expectations of those cash flows. Cryptocurrencies have no cash flows. Because of this, they&#8217;re more like gold; their value is driven to some extent by their desirability and potential uses, but mostly by the cost of mining.<\/p>\n<p>While there are many estimates of the cost of mining Bitcoin, most suggest that it&#8217;s close to $5,000 per coin. As of this writing, Bitcoin is valued at around $3,600 per coin.\u00a0Now that it is valued below its cost of mining, there is little incentive to mine any more, which doesn&#8217;t bode well for the cryptocurrency&#8217;s future prospects.<\/p>\n<p>Of course, there could still be ups and downs because there&#8217;s no good way to value the asset. Either way, it&#8217;s clear that investing in Bitcoin was a bad idea. Be glad you didn&#8217;t.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you thought investing in stocks was bad in 2018, be glad you stayed away from Bitcoin. While stock market investors are still nursing their wounds from a down year in 2018, Bitcoin investors were devastated. The cryptocurrency has fallen considerably from the dizzying heights it reached in December 2017. As of this writing, Bitcoin [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8494,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[612,88],"tags":[609,610,611],"class_list":["post-8447","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","category-market-commentary","tag-bitcoin","tag-crypto","tag-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/intelliserver.net\/wordpress\/wp-json\/wp\/v2\/posts\/8447","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/intelliserver.net\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/intelliserver.net\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/intelliserver.net\/wordpress\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/intelliserver.net\/wordpress\/wp-json\/wp\/v2\/comments?post=8447"}],"version-history":[{"count":0,"href":"https:\/\/intelliserver.net\/wordpress\/wp-json\/wp\/v2\/posts\/8447\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/intelliserver.net\/wordpress\/wp-json\/wp\/v2\/media\/8494"}],"wp:attachment":[{"href":"https:\/\/intelliserver.net\/wordpress\/wp-json\/wp\/v2\/media?parent=8447"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/intelliserver.net\/wordpress\/wp-json\/wp\/v2\/categories?post=8447"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/intelliserver.net\/wordpress\/wp-json\/wp\/v2\/tags?post=8447"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}