Bitcoin's Surge

The cryptocurrency rises once again

By Darryl Weng

---

Despite many stock analysts' belief that Bitcoin was destined to fall heavily in pricing, Bitcoin has recently experienced a rise to almost $50,000. However, such analysts still uphold the belief by reasoning that Bitcoin has experienced yet another usual fluctuation, meaning that Bitcoin should fall back to its usual price before the recent continuous rise. Why Bitcoin is repeatedly experiencing such fluctuations frequently is incomprehensible. Even so, the psychology behind the investors of Bitcoin may provide partial reasoning of Bitcoin's fluctuation.

To state simply, benign news of Bitcoin does not necessarily generate positive reception of investors and vice versa. What we do know is that if Bitcoin were to sustain an image of being stable, safe, and valuable, there should be an increase in both stock price stability and exposure to Bitcoin's true stock value that it is worth. Evidently, most investors to not engage in the use of Bitcoin. As such, there is actually little attention to the idea that Bitcoin will serve as a proper cryptocurrency for the U.S. Instead, investors are most likely focused on two things:

1. Cryptocurrency is the future and is being highly funded. Thus, Bitcoin will play an important part in that future

2. Bitcoin is new, eccentric, and full of reception

Informed investors surely understand that Bitcoin will play a vital role in the cryptocurrency future. However, it is doubtful that such investors consist of the majority of the investors in Bitcoin, especially with younger generations tending to follow where the trends and hype are. As for the uninformed masses, or majority, of Bitcoin investors, a possible understanding can be made: The more mysterious Bitcoin poses, the more hype or reaction it will receive from investors. It does not matter whether Bitcoin is full of fault or not. More simply, investors are more interested in the concept of Bitcoin than the innerworkings of the cryptocurrency itself. Interest, whether benign or malign, drives the fluctuations in Bitcoin's stock price.

Although this brief analysis is rather niche, taking this into somewhat of an understanding might open up further explanations as to why Bitcoin simply fluctuates continuously.