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The reckoning of crypto currencies

It was bound to happen!  Something that had seen a wild price rise with no "real world use" was a bubble and now its price is dropping as those who invested in the bubble are looking to get out. 

Bitcoin is now trading around $4,000 -- it was $5,000 just two days ago! 

If you read the press you will see comments about all sorts of technical reasons why this is happening -- which by the way may be true, nevertheless, the real reason is that there are few real-world application for bitcoins (and cryptos in general) and they were seen by most as an engine of speculation...

The question is where's the floor!  But it's not a question, in reality, bitcoin has no intrinsic value (granted nor do fiat currencies...but they have the support of national governments).  So Bitcoins and their friends will have to find their own support level.  Since the price changes have been mostly one way (up) there are no support charts, there is no concept of minimum support price --

Sure Bitcoins could go to zero, at US$ 4,000 mining cannot be a very lucrative business these days so I would guess that the supply of new cryptos is going to dry up -- which should help with the excess supply.  bitcoins that are traded via blockchain systems don't trade very quickly so that too may have a further impact on prices.


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