Bitcoin (available on Coinbase) has gained significant price appreciation last year with few shortfalls, hitting the peak of $19,343 in mid-Dec. However, Bitcoin (available on Coinbase) price started tumbling since then and fell to around $12,000 level at the end of the last year. It is currently trading just below $14,000. The price of Bitcoin (available on Coinbase) declined more than $2,000 compared to a month ago level, up more than 1,600% over the same period last year.

Source: coinmarketcap.com

Several factors added the big swings in Bitcoin (available on Coinbase) prices over the last two weeks. Initially, reports of strict regulations and higher taxes on Bitcoin (available on Coinbase) miners in China negatively impacted cryptocurrencies.  Moreover, concerns related to the potential ban on cryptocurrency trading from the South Korean government increased the volatility.

Although the Bitcoin (available on Coinbase) history suggests big swings in a short-time, Warren Buffett expects a bad end for the cryptocurrencies. Investors and analysts seriously fear that the Bitcoin (available on Coinbase) bubble could burst anytime.

Several major FUNd managers and renowned investors have been suggesting that investors avoid trading Bitcoin (available on Coinbase), while the Securities Exchange & Commision has informed people to “exercise caution” and be wary of scammers.

Buffett said the recent growth in Bitcoin (available on Coinbase) and other cryptocurrencies could have a bad end. On the other hand, John Rogers, the CEO at Ariel Investments, said the price of cryptocurrencies and Bitcoin (available on Coinbase) could decline sharply lower in the next five years.

Source: Wall Street Journal

Bitcoin (available on Coinbase) is a blockchain technology and it has only an online presence. Moreover, investors don’t have the authority to reverse transactions, making it an eye-catching option for cybercriminals. Several institutional investors are also taking short positions on Bitcoin (available on Coinbase), signifying their bearish outlook.

Overall, it appears that Bitcoin (available on Coinbase) and other cryptocurrencies are experiencing obstacles in wider adoption and their use in the real world. Goldman Sachs has also presented similar stance on Bitcoin (available on Coinbase). Goldman Sachs says it is quite difficult for Bitcoin (available on Coinbase) to prosper as real money. The substantial volatility and swings in Bitcoin (available on Coinbase) and cryptocurrencies prices also suggest that it cannot work as money. Therefore, investors should remain cautious when trading Bitcoin (available on Coinbase) and other digital currencies.   

Featured Image: twitter