Bitcoin is the currency which has its own ups and downs. At present, it is suffering or you can say that there is a Bitcoin Crash again in the market. This has raised many questions like what was the reason, is it going to recover, what to do now, was it a short one or going to have a long-term effect, and so on.
We are going to discuss each and every aspect regarding the present and the future condition of the bitcoin.
Reason For Bitcoin Crash
Bitcoin is volatile in nature so you cannot expect what is going to happen next. But there are some factors which can affect the price of the bitcoin. So the factors which caused the bitcoin crash were:
Unlike regular software cryptocurrency is different. In this, you cannot simply upgrade the software. If this could be done then the decentralized protocol would be hampered. So to defeat the decentralized impact they upgraded the software by using the method called forking.
This process is known as the forking. It provides the latest version of the software and installed on all the nodes. But the problem is when the fork is hard it results in the formation of the new currency. This happened in this also and the new currency called Bitcoin Cash was formed. This resulted in the division of the public interest an fall in the price of the bitcoin.
Bitcoin: Civil War
After the formation of the bitcoin cash, there was a split in the vision of the bitcoin and the bitcoin cash. This was basically because of how the bitcoin cash should proceed one of them is the block size of the bitcoin crash.
But after the split, there was a debate over the BCH symbol also. The other problem that was faced by the buyers is that if you have the bitcoin then the equal number of the bitcoin cash will automatically be generated in your wallet. But when you use one type of coin then other will also be deduced from your account.
Another reason for the fall in the price of the bitcoin is the volatile nature of the bitcoin. The price can move in any direction but at present, the bitcoin is facing the bearish market.
Some other reasons for the fall in the price of the bitcoin are:
- Massive sell-offs.
- Goldman Sachs abandoning the bitcoin to launch a new currency.
- Fear of huge taxes.
So these are some of the reasons for the Bitcoin Crash.
What to expect from bitcoin crash?
You might be having the anxiety attacks after the fall in the price of the bitcoin but this is not the end. You can expect it to come back or finally the end of the cryptocurrency. So what are the factors which can play in deciding the future of the bitcoin?
Bitcoin is the limited currency in the world that is 21 million. If the craze of the bitcoin does not get affected and bitcoin keeps on performing even in the same way then you can expect the rise in the price of the bitcoin.
China banned the trade of the cryptocurrency in any form. They feared that the value of their currency will be affected but the ban was reconditioned when they realize that the bitcoin is the decentralized and autonomous currency which cannot affect the price of the Chinese currency.
But this is not the end as the Chinese government is soon going to launch their own digital currency. If this happens then it is definitely going to affect the price of the bitcoin in a negative way.
Ban in America
The future of the bitcoin and other cryptocurrencies can go anywhere means it can get legalized or may get banned in some states. For example, Ohio has become the first state to accept the payment of the taxes in cryptocurrencies. But there is a chance that the U.S might create their own cryptocurrency calledFedcoin.
When we look at the example of Ohio then we can think that the price of the bitcoin will rise. But when you look at the Fedcoin then the thing that comes to the mind is that it might get banned.
If the government bans the cryptocurrency in the U.S then the value of the bitcoin will crash for sure.
But these are not the only factors which are going to affect the price of the bitcoin. Things like investment, continuous use of cryptocurrencies can play a vital role in the comeback of the bitcoin.
So it is not necessary that the price of the bitcoin fall or stay the same. You can expect the rise in the price of the bitcoin very soon.
Short or Long Term Effect
You might be thinking that the crash in the bitcoin is long-term or it is never going to recover. But the thing is that it is very volatile and anything can happen very quickly. This means that the price of the bitcoin can change anytime. You can expect the change in the price of the bitcoin to rise very soon. But it is not necessarily the change will be positive.
What to do now?
With Bitcoin Crash you might be confused whether to sell your bitcoin or to keep it. We would advise you to keep your bitcoin. As there is a high chance that the price of the bitcoin will be recovered very soon. So hope for the best to happen in the bitcoin world.
Things like Bitcoin Crash can happen to any cryptocurrency. So you should not worry about it. We will be providing you the complete details. If there is any change happen in the bitcoin world.