Bitcoins Crash and Burn, Value Drops to $500 / €363

Bitcoins are crashing, just a few weeks after reaching the biggest values in the currency’s history.

The price per Bitcoin has dropped under $500 (€363) for a while, a far cry from the $1,200 (€872) from a few weeks ago. The incredible price drop seems to indicate what economists across the world have been suspecting for months – that the Bitcoin was in a bubble. The Bitcoin bubble, like many others before it, only lasted for a few weeks and there are plenty of reasons explaining the burst and why the cryptocurrency is back to the value it had about two months ago.

The rapid rise in price put the currency on the to-do list of numerous governments who felt the need to take a formal stance towards Bitcoin. The Chinese officials said that Bitcoin wasn’t a real currency and other nations followed in their footsteps. The United States didn’t really come to a conclusion on the matter, although it seemed to be more open-minded about it. Either way, what the situation indicates is that Bitcoins are incredibly volatile and risky to invest in. Whether it will pay off in the end, it remains to be seen.

Bitcoins are slipping again (click for larger image)
Image credits to bitcoincharts.com

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