Why is the price of bitcoin going down again?
Last month, there was a good month for Bitcoin. It went from US $ 6,300 to US $ 8,400 in just a few weeks. It's a lot to cry from the $ 17,000 that arrived last December, but it was still a good run. The problem is that it can end.
In the past two days, bitcoin has fallen to a great extent. At the time of writing, the price is 7,422 USD, which is much below the eight thousand psychological levels. Currency still reaches more than 8,000 daily highs every day, but if we go through the data provided by the coinmarket cap then overall performance remains incompatible.
The whole cryptocurrency market is still under a recession trend, because it has been done for most of the current year, but other coins did not have small bulls that experienced bitcoins. In the past few days, there has been a decrease of 5% of the Atrium, XRP and Bitcoin Cash.
Why is it going down?
Worldwide politicians are finally starting to notice cryptrocracies, and this has affected prices. For example, South Korea is one of the most important places in the world for digital assets because it has high business volume for many hosting exchanges, and especially for bitcoin. The South Korean government is considering to start tax on cryptokuricity exchanges, who have so far enjoyed tax benefits.
South Sage Commission of Hong Kong-based Korean Cryptocurrency Response Team said that "Cryptocurrency Transaction Brokerage is not effective in generating additional value, in its words,
"While crypto markets have seen a rapid increase, such trading platforms are not adequately prepared in terms of security"
Mr. Seong-ki then said that,
"We are trying to make the most important and important things first, whose purpose is money laundering and investor protection, the bill should be passed as soon as possible."
Then there was news about laser connect. This is a BlockChain based software that is going to start testing in nine of the world's most prominent financial institutions (for example Barclays and Citigroup).
This software is supported by IBM, whose reputation is still tremendous in the technology industry, in partnership with CLS, a currency trading utility Although these services will be based on cryptocurrency and blockchain, it takes demand from bitcoin. Another issue is power.
Mining bitcoin blocks take huge amounts of electricity; Current estimates indicate that the mining nodes of Bitcouine are using much power as the entire country of Ireland. Governments are also looking at it and are trying to manage it.
A spokesperson for the New York State Department of Public Service was quoted on this subject,
"These companies are using an extraordinary amount of electricity - usually thousands of times more power will be used than the average residential customer. Due to the limited supply of low cost hydropower, large amounts of electricity are being supplied to small communities There is a high cost. "
Bitcoin is entering a mineral energy crisis, and it can be an important point in its history. Another bad news for Bitcoin was that a computer programmer Marty "Sirius" Malmö, who has worked with the mysterious (and still unknown) of Bitcoin maker Satoshi Nakamoto, is joining a team of developers who are The new digital assets are produced X will be called.
But despite those challenges, there has been good news for both bittoine and many other cryptokyurs, so let's also review some of them. US SEC (Securities and Exchange Commission) is analyzing the possibility of approving a new bitcoin exchange traded fund.
This initiative came from Vanek and Solidax and was filed through the Chigko Board of Exchange. A decision is expected to be announced this month, but the SEC is not in haste, so the final decision may take several months.
In another topic, a new study has found that cryptocurrency investment market, especially the piece that has to do with bittoine, is still a lot of space to grow.
It included a survey among a few thousand US investors. Only two percent said that he is the owner of bitcoin and even one percent is not in his wish list. Most of the surveyed investors did not express any interest in buying bitcoin but the fourth said that they are fascinated by it.
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Disclaimer: This article should not be taken, and is not intended to provide investment advice. Global Coin Report and / or its affiliates, employees, writers and sub-organizers are cryptocurancers and can be held from time to time in some coins or tokens covered by them or not. Please do your complete research before investing in any cryptocourrency and read our complete disclaimer.
