The recent drop in bitcoin prices does not mean that the digital economy is in crisis. Even if the price of the digital currency dips down to $150, it won’t be the end of Bitcoin – or so says NASDAQ columnist Martin Tillier.
In his regular column on the website of the famous stock exchange, the veteran broker Martin Tillier expresses his opinion about the current situation in the Bitcoin economy.
Martin Tillier had a long career working on different exchanges. In 2012, he left the industry to open a successful wine shop, but later changed his mind and became a financial advisor and a columnist for the NASDAQ website. He writes a column about Bitcoin once every two month.
This time, the expert focuses his attention on the sudden shift in the Bitcoin price. According to Tillier, the “New Year price dip” may be connected with problems at the Bitstamp exchange and several other factors. The expert believes that a price below $300 is to some extent justified.
“The drop doesn’t necessarily represent a crisis in Bitcoin; it may just be part of the return to fair value. With the level of acceptance increasing at such a fast rate, however, if Bitcoin is to retain credibility in the short term some degree of stability is needed at around these levels”, notes Tillier.
He argues that the further fall of the price back to $150 might be the end of the “bitcoin bubble”, which started to grow at the end of 2013, and then slowly deflated. The expert believes that the latest price is good for the market in the long run.
“If the next few weeks see a collapse back down to around $150 it won’t signal the end of Bitcoin as some opponents would have you believe. As stated above, that could be seen as just a return to fair value and therefore a healthy thing”, points out the expert in his column.