In most financial markets across the globe, including stocks, bonds and currencies, prices rise at a much slower rate than they fall. It might take a stock market 6 months or a year to rise 10%, whereas a fall of that magnitude can happen in as little time as a day or two.
When prices of financial assets fall very rapidly, this is known as a price crash.
The price of Bitcoin is not exempt from price crashes.
Bitcoin absolutely skyrocketed in price in 2013, as the banking crisis in Cyprus was a significant motivator compelling people to remove their money from mainstream banks that were in crisis, and place the funds outside of the traditional banking industry.
However, what goes up in price extremely rapidly wall also fall in the same manner.
We are repeatedly asked, “Will the price of Bitcoin crash again?” The answer is, “Of course.” Crashes occasionally happen in financial markets, for a wide variety of reasons. Bitcoin is a financial market, and is not exempt from experiencing a price crash from time to time.
We feel very, very strongly, though, that in spite of a price crash every now and then, the future of Bitcoin is exceptionally bright, and its value will go to heights that most people would not dare to dream of.