Bitcoin worth $1.5B withdrawn from Coinbase

Bitcoin worth $1.5B withdrawn from Coinbase in 48 hours

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The volatile nature of digital currency makes it an uneasy investment for many potential users. Bitcoin has been criticized for its high volatility and risk, even by people working in the industry. If you’ve ever bought bitcoin, you know just how risky an investment it can be. The digital currency market is still developing and hasn’t reached stability yet.

As a result, investors face a lot of risks when they choose to invest in cryptocurrency. Bitcoin prices have swung up and down so much that some people have withdrawn their investments completely. Here are five examples of bitcoin price volatility causing millions in worth to be withdrawn from the crypto market.

5 Examples of Bitcoin Price Volatility Causing Millions in Worth to be Withdrawn

The Winklevoss twins bought $11 million in bitcoin in 2013 when the price per bitcoin was around $120. If they had held onto those bitcoins, they would be worth over $1 billion at the current bitcoin price. Instead, they cashed out their investment in 2016 and became billionaires. The Ethereum Foundation found itself in a very similar situation. The Ethereum Foundation had $20 million worth of Ethereum stolen thanks to a hack. The price of Ethereum has since soared to $200. If the Ethereum Foundation had not lost its funds due to the hack, they would be sitting on a huge pile of money.

Ripple Labs suffered a major scandal when it turned out that the company had given itself massive amounts of XRP, the cryptocurrency used on the Ripple network. This caused Ripple Labs to have over $50 million worth of XRP. If the scandal hadn’t happened, Ripple Labs would have $50 million more in their coffers. Bitcoin Cash is an example of a fork in the road for bitcoin. When bitcoin cash split off from bitcoin, it had an initial price around $900. Now, it’s trading for around $3,700. If the bitcoin cash fork had never occurred, investors who had bitcoins would be sitting on $3.6 billion right now. Litecoin was created when a team of developers decided that they didn’t like some of the decisions being made at bitcoin. They wanted to create a fork that would address their concerns. In order to be successful, a cryptocurrency has to be able to provide something unique. If the bitcoin fork had never occurred, litecoin would not exist.

Bitcoin Gold is an example of bitcoin’s volatility causing a fork in the blockchain\n## Conclusion

When bitcoin split into two, it created two different investment opportunities. Bitcoin gold is designed to be more decentralized than bitcoin and more suitable for use in smaller commercial transactions. If the bitcoin fork had never occurred, bitcoin gold would not exist.

These five examples show that bitcoin price volatility can cause millions in worth to be withdrawn from the crypto market. As the industry matures and digital currencies become more stable, investors will feel more comfortable with the risks involved.

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