Why Bitcoin Fell 40%, And What It Means

Why Bitcoin Fell 40%, And What It Means

Bitcoin: heard of it? Since even octogenarians are asking their grandkids about it, I suspect you have. Cryptocurrencies, of which Bitcoin is the best-known, are taking over the imaginations of people everywhere. Note that I said people, not investors. Because after watching the roller-coaster ride that is Bitcoin for several years, hearing all the bull, bears (and pigs) on all sides of the debate, I can truly say the following about Bitcoin's place in today's financial markets: it is a benchmark for speculation and greed. Now, that doesn't mean that the blockchain technology that the crypto-sphere is based on is speculation and greed. It is very real, and over time, we may all be better off for it. But as the chart below shows, the price fluctuations in crypto are not something that can be correlated with the word "investment." That volatility is not like a stock that beat or missed earnings expectations and sees its price flop around by 5-10% for a few days, as investors react. How wild is the ride? The price fell 10% from the time I pulled this end-of-day chart from May 20, to the stock market close a day later. How wild has the