Why Did Bitcoin Go Down?
Why Did Bitcoin Go Down? Is the question that is creating havoc among the people. Even after the continuous support and faith by the cryptocurrency expert. For the last week, the bitcoin is falling continuously and people are trying to find the reason for that. It has fallen from $6,000 to roughly $3,000 which is quite a lot.
So what were the factors which caused this fallout?
Bitcoin is the cryptocurrency which is not controlled by any of the regulatory. There has been a rise and fall in the price of the bitcoin since the beginning. There are various factors which affect the price of it.
Why Did Bitcoin Go Down?
Today we are going to discuss the factors which have caused the fall in the price.
The approach of the government toward the cryptocurrency is not positive. It does not consider the cryptocurrency a stable and secure currency. They think that it does not have a security system or fail-safe.
It is also not considered in the taxation system. This can be easily used by the people for the money laundering, a donation to the terrorist organization, drug and human traffickers and so on.
By considering all these points the government does not think it as a reliable currency.
Cryptocurrency is volatile in nature means its price can go up and down anytime. So the price going down is something you should be prepared for. The volatility can also be the reason for it not being regulated by the central authority.
The bitcoin is considered to be a bubble that can burst any time. Well, you can consider it the burst that has to happen again. But this does not mean that this is the end of it. You can expect the price of the Bitcoin to go up as it has done in the past.
The mining done by the miners for the bitcoin is getting expensive day by day which is making them lose interest in it.
Earlier the reward was high. This was making mining a profitable option but at present miners are getting 12.5 bitcoin as a reward. From this, the miners are not able to cover all their expenses.
So you can also consider that the people might be losing the interest in it.
Regulation enacted by the different countries on the cryptocurrency is another reason for the downfall.
For example, South Korea has made compulsory for the user to use their real name account that is you cannot trade anonymously. If you do that then you will be fined.
All the above-mentioned points can be considered as the reason for Why Did Bitcoin Go Down?
After this, some might be considering that it is soon going to end. But most of the cryptocurrency experts still believe in it. They think that soon it will be back on its bull run.