Following the last few days/weeks, the events that unfolded, related to Mt. Gox – the oldest and most known Bitcoin Exchange in the world shutting down withdrawals, claiming it’s due to a bitcoin protocol bug and following by the resignation of Mark Karpeles, the CEO of Mt. Gox from the board of Bitcoin Foundation – all contributed to the beginning of a spiraling drop in Bitcoin prices across the board.
But, is it a bad sign? Should we listen to the Nay Sayers repeating their mantra that “Bitcoin is a bubble like the Tulips in Old Europe and it’s just meeting its unavoidable end” once again?
Bitcoin encountered many pitfalls during its short and turbulent life so far. Each in it’s turn caused a cascading drop in its value. The first one was even related to this same Bitcoin Exchange – after multiple accounts were hacked the coin dropped from a high of 32 USD down to about 3 dollars.
But it bounced back, and not only that, it gone to new heights, where it reached a (so far) all time high of around 1200 USD back in April 2013.
So, allow me to have some faith and believe that as in the past, this drop is temporary and only indicate of a new climb to come once the dust settles down.
Not only will it climb, it will reach new heights as after each time the value dropped, even though it took a few weeks or months, it eventually took a skyrocketing climb that went to heights no one could or would foresee.
That’s my current view.