Bitcoin [BTC]’s recent plunge has been a much talked about topic in the cryptosphere with several major players from the market coming to the forefront to give their opinions on it. The furor reached a crescendo when Bitcoin broke below the $4000 barrier, something that people considered would not happen after the sub-$6000 crash.
Speaking to CNBC, Rebecca Harding, the Chief Executive Officer [CEO] of Coriolis Technologies, touched upon the how the cryptocurrency market has lost over $700 billion and the chain reaction of price drops across the board.
The discussion with the CNBC panel also pointed out to some of the reasons as to why the bear market has reached its current state. Fingers were pointed at technical selling, the fall below the psychological bottom and the SEC’s negative comments on the market as a reason for Bitcoin’s nose dive. Just last week, Bitcoin had seen a rapid decline from the $6000, $5000 and $4000 barrier, creating panic amongst the investor crowd.
Another reason assigned to the crash was the fact that there is not a lot of certainty in the trade and no one is getting back into the market. Harding stated that Bitcoin was based on a wonderful technology i.e. Blockchain, but the technology as a whole has no sustainable value.
The CEO who is also an author added that one of the main factors hampering the growth of the cryptocurrency market is the “dispute between the hardware and the software”. She said that there is a forking between the hardware and the software that has a created a rift within the community. In her words:
“The wonder of the technology has resulted in its own demise. The technology has become so complicated that it becomes difficult to use as a security. Since Bitcoin and cryptocurrencies are linked to investor sentiments, as sentiments slip, so does the value.”
According to Rebecca Harding, the cryptocurrency market is not rooted in the real economy which contributes to a lot of the industry’s problems. The panel also opined that earlier there was a lot of cheap money in contrast to today’s economic atmosphere. The officials also spoke about how 2018 paved the way for normalization, which can be beneficial to the community as a whole.