Bitcoin has been called a lot of things since it first appeared on the scene about 10 years ago. Many enthusiasts loved the idea of a currency not attached to any government. As soon as it achieves a core following, we were told, bitcoin’s value would shoot to $100,000 per unit.
Well, that didn’t happen.
We did go through the mania at the end of 2017, with bitcoin nearing $20,000, but it then lost 85% of its value, falling near $3,000. The cryptocurrency rebounded last year to more than $10,000, but is now sitting at a two-month low of $7,250.
As the coronavirus brings fears of economic recession and equity markets fall, bitcoin has also dropped 20% in five days. That’s not much of a safe haven.
Even the fabled “halvening” slated for May, when the rate of bitcoin production drops by 50%, has failed to spark a rally.
Meanwhile gold, that other storehouse of value, has fallen less than 5%.