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Why did Bitcoin fall? Analysis of reasons
Bitcoin price for a long time kept within $10,000 per unit. Slight fluctuations did not shake confidence that price seeks to get fixed at $10,500 and will go conquer new top at $12,000 dollars.
After all, the causes of cost fluctuations can be very different, or lead to a collapse at the same time. This summer experts agreed that bitcoin will grow in the fall. But now everyone is talking about different reasons for its decrease.
Today we’ll take a look at the most important reasons from world crypto gurus.
What affects the growth of bitcoin?
Among the commonplace reasons: increased demand. But what influences this factor.
Ease of use
Integration of Bitcoin into company systems simplifies working with it. If previously the opportunity was used predominantly by large corporations, the simplification of schemes allowed also small companies and ordinary users to show more interest in the use of coins.
The demand for bitcoin as a payment facility
More and more stores accepting cryptocurrencies . And not only on the Internet space but also in ordinary institutions. More often this situation is observed in countries with high level of awareness of citizens about cryptocurrencies. If virtual coin is not known enough, then, logically, its use will be low.
Due to large fluctuations in fiat money people seek for alternative ways of investment, money storage and payment methods. So, for example, the devaluation of the RMB and confiscation of money in Venezuela and India contributed to the growth of bitcoin.
What affects the fall of bitcoin?
B itcoin risks to fall into crisis situation in case of a network split. Network split may pass in a soft script (soft fork), as well as a hard one (hard fork). And it is impossible to predict in advance their influence on the coin rate.
Difficulties in cryptocurrency mining
The more coins are mined, the harder it turns out to earn new ones. Besides technical difficulties, not in all countries cryptocurrency mining is allowed which complicates work of miners even more.
Hacker attacks on exchanges
Some experts believe that this should not affect the value of cryptocurrency, however most prefer to be confident in security of their savings. That’s why any hacker attacks adversely affect the price of cryptocurrency.
Cryptocurrencies was announced in some countries outlaw.
What caused last bitcoin’s crash
Disabling of mining farms in Kyrgyzstan and Kazakhstan.
Weakening activity of miners. China Authorities decided to close unregistered mining companies and data centers that mine cryptocurrency. Across some time it is planned to close and registered companies as well. Mining is recognized as undesirable type of industrial activities that inhibits further development of the country.
Many analysts believe that the fall connected with hacking of leading South Korean Bithumb cryptocurrency exchanges.
Statement by Hikmet Ersek – General Director of Western Union, that the service does not intend to provide customers with the ability to transfer in cryptocurrency.
Lack of active sales through the new Bakkt cryptocurrency exchange
Is it worth investing in bitcoin?
Every day we get conflicting information in the news bulletins. Some say that this is another soap bubble, others are of the opinion that Bitcoin will soon replace fiat money. There is no definite answer. Responsibility for the decision is always up to a trader.
Cryptocurrencies have long ceased to be a topic of geeks only. More and more people of different ages and specialties get interested in digital coin, and it keeps firmly entering our daily lives.