Bitcoin Value Drop
What Is Bitcoin:
Bitcoin is a digital currency and worldwide payment system. It is the first decentralized digital currency as the system works without a central bank or single administrator, means transactions are made with no middle men…meaning, no banks These transactions can take place between users directly and these transactions are verified by network nodes through the use of cryptography and recorded in a public distributed ledger called a blockchain.
Bitcoins offers the promise of lower transactions fees than traditional online payment mechanism and is operated by a decentralized authority, unlike government – issued currencies. It is commonly referred to with terms like digital cash, virtual currency, electronic currency or crypto currency.
When It Was Invented:
It was created in 2009. It was invented by an unknown person or group of people with the name of “SATOSHI NAKAMOTO”. Bitcoins are created as a reward for a process known as mining. They can also be exchanged for other currencies, products and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.
Value Of Bitcoin Drops Below $8,500
The price of bitcoins has gone through various cycles of appreciation and depreciation referred to by some as bubbles and busts. For example, in 2011, the value of one bitcoin rapidly rose from about US$30 to US$32. In 2013, on 29 November, the cost of one bitcoin rose to the all-time peak of US$1,242. Some evidence suggests that part of this peak in the price of bitcoin was due to price manipulation. BUT NOW… bitcoin is in trouble.
Bitcoin tumbled below US$8,500 as a miserable 2018 continued for crypto currencies, with investors confronting a mounting list of concerns about the future of the industry.
According to Coin Desk, bitcoin opened at $9,052 today and hit a low of $7,695. At the time of writing, it had recovered slightly and was trading at $8,403, its lowest price since late November. Bitcoin is extremely volatile and has been declining for the past month.
Other currencies including, Rival coins, Ripple, Ether and Litecoin tumbled at least 16 % as losses continued to spread across crypto currencies. That buzz has since fizzled. Though regulation for crypto currencies is still relatively nascent, it is likely recent developments have continued to rattle investors. India recently said it doesn’t consider bitcoin to be legal tender. According to the Finance Minister of India, “all measures to remove crypto assets in financing illegitimate activities or as part of the payment system”.
South Korea is also cracking down on crypto currencies. The main reason for this is that majority of the global investors in crypto currencies reside in South Korea. Even though, the population of the country might be small but the number of investors is actually pretty high. The exchanges are required to collect the documents and verify the identity before allowing them to trade.
Furthermore, facebook also recently announced that it would not allow the crypto currencies advertisements especially for the ICOs. Many of the ICOs were heavily advertising on facebook in order to gather the new investors and in order to gather the hype as well.