Bitcoins: Cryptocurrency is a digital or virtual form of currency which is secured by cryptography and which takes the form of coins or token. It has the secured payment online represented by ledger entries in the system.
What does Bitcoin mean?
Bitcoin has dominated the market since it was first mined in 2009 January. It has accounted for more than 45% of the Cryptocurrency market with a price surge of more than $60000 in April 2021. Earlier the bitcoin was more than 70% of the cryptocurrency market and it is widely recognized by hedge fund managers and banks as a hedge against inflation. Bitcoin has a volatility fair share in the market over years and the prices also have pulled back but being the biggest name in cryptocurrency gives it worldwide acceptance.
The balances of bitcoin are kept in a public ledger as everyone should have access to it and no physical bitcoin is there. All the transactions of bitcoin are verified and checked by a computer system. As it contains a blockchain system, all the transactions are safe. Bitcoins are not issued by banks or government or any institution. Bitcoin is commonly abbreviated as “BTC”.
Why there is a fall in the price of Bitcoin?
Bitcoin is the first cryptocurrency invented, so many people know about it. But from the investing point of view, many people are unaware of Bitcoins. They do not know the meaning, working of bitcoins investment strategies and technique and how they will get benefited. This is one of the reasons for the fall in value
The second reason for the reduction in value is that the Chinese Banking association passed a statement on their website that financial institutions should “resolutely refrain” from providing services using digital currencies because of their volatility. After this statement, every virtual currency fell, Bitcoin dropped by 7%.
Elon Musk also plays an important role in the falling of the bitcoin price. Firstly he announced that his company Tesla has invested $1.5 billion in Bitcoins and Tesla accepting bitcoins as a payment. After some time he said because of environmental damages caused by bitcoin mining Tesla will not accept bitcoin as payment. After this statement the price of bitcoin fells below $50000.
Many people are influenced by the statement of Elon Musk. These are some of the reasons for the fall in the price of bitcoin.