Emotions have a huge influence on investments, bitcoin has been a victim of it.
In stock markets, if any news or event of a particular stock comes, the stock behaves according to them.
There are some stocks which have very high P/E ratios, does that mean that those stocks have reached its peak, no, not at all.
If the P/E ratios are high it means that people are very optimistic about its future growth.
The same principle goes for other financial instruments.
But bitcoin is a decentralized digital currency.
Bitcoins are used as investment instrument rather than a currency.
Read: Would cryptocurrency replace the fiat currency
Bitcoin is a big threat to the banks, they will not just sit quietly.
Satoshi Nakamoto is alleged to be the creator of bitcoin, but there is no proof for that.
literally, there is no one who is controlling the bitcoin.
The governments love to control currency for different reasons.
The blockchain technology can be used in banking, elections, records, etc.
But bitcoin can’t be used as a currency, even if any government wants to regulate cryptocurrency, they will launch their own one.
As soon as people will know this fact, they would sell the bitcoins rapidly.
The price will go down rapidly and if there are no buyers then people will stick with it.
The government can even completely ban the bitcoin to destroy it.
On another scenario, even if the bitcoin survives, it would not give that much return.
As the current price is almost $8000, which was very much less than a dollar.
Because of awareness about its disadvantages and a question mark about its regulation.
It would not give that much ROI as it has given up till now.
Some people are giving wild targets like a million dollars.
There is not that amount of money in the world.
Invest only when you can afford to lose and invest in the things which you are confident and know about it.