hey, guys, it's me Neha, and welcome back to another blog and this time I'm going to be talking about the crash of bitcoin and cryptocurrency
first, let's talk about bitcoin
what is bitcoin?
bitcoin is a digital currency (created in 2009) that uses peer to peer technology to facilitate instant payments, markers called "bitcoin exchanges" allow people to buy or sell bitcoins using different currencies, and it's also a digital currency, and it isn't tied up with a bank or the government and allows users to spend money anonymously, bitcoin is one of the cryptocurrency, there are many others like bitcoin that fall in the category of cryptocurrency, like ethereum, bitcoin, dogecoin, There are many apps using which you can buy sell these coins, but the most popular digital currency is bitcoin, which is why its most known by almost everyone
who created bitcoin?
why did the crypto crash?
investors lost a whopping $830 million dollars in the crypto crash last week
Last week was very volatile for cryptocurrencies with Bitcoins plunging to $30,000 level before recovering slightly. In the process, it lost nearly half of its total value, bankrupting many of those who invested in it.
other coins also followed suite, crashing as much as 63% in the last 7 days In essence, crypto investors lost a whopping $830 billion in the blowout last week. The total market cap of all cryptocurrencies stands at $1.49 trillion as of now.
Many exchanges across the world faced problems due to heightened volumes and sell orders. These included Binance, WazirX (owned by Binance), Voyager, and Coinbase, among others.
There were two major reasons behind the crash. The first was the vehicle maker Tesla’s sudden decision to stop car purchases using Bitcoins, a measure they announced a couple of months back.
The company cited environmental concerns over the computational ‘mining’ process behind its move. Mining basically refers to the process in which computers solve complex mathematical puzzles to enable transactions using Bitcoins and in return generate more Bitcoins. This is a high-energy-intensive process, requiring electricity often produced by burning coal.
Elon musk is very powerful, he made signal very popular and the crypto crashed because of him
Another reason behind the sell-off has been China's crackdown on mining rigs across the country. China reiterated a warning last week that it intends to crack down on cryptocurrency mining as part of an effort to control financial risks.
musk effect:
many investors and analysts have also blamed mercurial technocrat Elon musk for the massive volatility in crypto assets, his tweets sometimes in support and some times in criticizing the assets, seem to have an immediate bearing on price movements
Musk has been a fervent supporter of Bitcoin and Dogecoin (which actually started as an internet meme and has no fundamental basis like Bitcoin), but have also termed the mania around cryptocurrencies a “hustle”.
Many of Musk’s followers last week blamed him for their losses. In fact, some Twitter users claimed they became homeless after Dogecoin prices crashed following Musk’s advice.
As per the latest data, Bitcoin traded at $35,665, down 27 percent in the last seven days. Ethereum was at $2,124 (down 45 per cent), Cardano $1.35 (down 43 per cent), Binance Coin at $269 (down 55 per cent), Dogecoin at $0.32 (down 40 per cent) and XRP at $0.84 (down 46 per cent).
Prices have recovered...
that's it for this blog I hope you guys enjoyed it and I'll see you guys in the next one, ciao!
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