Bitcoin’s tumble this week must have crypto-skeptics rubbing their hands in “I told you so” glee. That might be premature, even though the recent correction is dramatic enough to make it understandable.
After all, the “mainstream” cryptocurrency (contradiction acknowledged) fell almost five per cent on Monday, and then hastened its declines on Tuesday, plunging as much as 20 per cent. By the end of the day, anyone holding Bitcoin since its peak had taken a more-than-40-per-cent hit; in market cap terms, that’s more than US$100 billion gone. And that’s not counting the losses suffered by holders of the hundreds of other cryptocurrencies that have sprung up in Bitcoin’s wake, many of which saw similar (or worse) declines. More….