Bitcoin - Digital currency shows all the signs of a classic speculation bubble

Just in time, the Dusseldorf Stock Exchange has declared the term "Bitcoin boom" the stock market word of the year. Just in time, as now threatens the boom from the subsequent crash in the shade.

In early January 2017, the Bitcoin price was still under $ 1,000. In the week before Christmas 2017, he was scratching at the $ 20,000 mark - an annual increase of nearly 2,000 percent, before halving to less than $ 10,000 in the first few days of January 2018.

But what is Bitcoin anyway? The idea for Bitcoin goes back to a paper by Satoshi Nakamoto, although it is still unclear whether this pseudonym hides a single person or a group. In this paper, Bitcoin is described as a unique and tamper-proof international form of payment.

The coins are not physically imprinted, but digitally produced with great computational effort. Comparable to the mining of gold is the production "digging", the production follows a fixed algorithm. Because encryption technology is used in virtual Bitcoin, it is also called a cryptocurrency.

However, with the incredible increase in 2017, "the digital currency is showing all signs of a classic speculative bubble. So, can one assume that sooner or later the Bitcoin quotation will break as fast as it has risen? The short answer is yes. "

The first signs of a (temporary or permanent?) Crash of the cryptocurrencies will be observed from mid-January 2018. And so are the headlines accordingly: "Bitcoin crashes drastically", "Bitcoin price halved" or "All so-called digital currencies lose dramatically / Is this the beginning of the end?"

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