FT Adviser (06/02/2019) – Those who fell prey to last year’s cryptomania craze and purchased the digital currency had more to regret than celebrate at the end of 2018.
Bitcoin – the oldest and bellwether cryptocurrency – closed at $3,769.91 (£2,920), according to exchange operator CoinDesk, on December 31 2018.
The cryptocurrency, along with others, had been extremely volatile throughout 2018, trading below several highs seen in the previous year.
It hit the $20,000 mark in December 2017, and experts had speculated that the price could exceed $50,000 in 2018.
Bitcoin
But 2018 proved to be a tumultuous year for cryptocurrencies, marred by severe price swings, regulatory clampdowns and volatility, with most cryptocurrencies performing poorly.
The bitcoin price index – an average of monthly prices – fell from $13,860.14 in January 2018 to $3,689.56 by December 2018, according to Statista.
Ricky Chan, director and Chartered Financial Planner at IFS Wealth & Pensions, says: “I think to advocates and casual observers of bitcoin and cryptocurrency, abysmal performance in 2018 is an understatement, with huge losses being experienced across the major cryptocurrencies. Some predicted bitcoin to exceed $100,000 before year end.”
Mr Chan adds: “I think many naive individuals suffered from FOMO [fear of missing out], so many piled into cryptocurrencies thinking it was a ‘get-rich-quick’ scheme. For sceptics, it was expected not to hold such wild valuations and many steered well clear.”
Full article link: https://www.ftadviser.com/investments/2019/02/06/cryptocurrency-lessons-of-2018/
