Bitcoin’s volatility as an investable asset has always been a talking point. It is heralded when the price jumps 40 percent in one day but scorned when it swings into a downward spiral. However, while Bitcoin’s price movements are newsworthy, there are other areas where such downward volatility can also be seen.
Recently, as pointed out by former eToro analyst Mati Greenspan (@matigreenspan), an Irish oil company, Tullow Oil, has seen its share price drop significantly over the last 24 hours. Tullow’s price has dropped 60 percent in a catastrophic collapse.
Bitcoin, while it has been prone to 60 percent drops and higher, has always found a way to bounce back. The difference between Bitcoin, a decentralized asset, and a company like Tullow, which is a Public Limited Company, is that Bitcoin is likely to continue springing up and down on a generally upward trajectory whereas Tullow’s days may be numbered.
Hinging on One Man
It all started to go wrong for Tullow when Pat McDade, along with exploration director Angus McCoss, said they had quit the firm. More than £1.05 billion ($1.38 billion) had been wiped off Tullow’s market value this morning, leaving the company reeling, valued now at only £801.7 million (1.05 billion). Read More...