Is Bitcoin losing it's value, or is it just a market trend?
Bitcoin as a part of crypto currency is facing a continuous downfall in its value
Hinal
New Delhi, 21 May 2021 ( Updated 21, May, 2021 07:17 AM IST )
What is a Bitcoin?
Bitcoin is a computer file stored in a digital wallet app on your computer or smartphone. It is a kind of crypto currency which is used by people internationally to invest and trade their money for more profits. Satoshi Nakamoto, the creator of Bitcoin, is at the top of the list and is estimated to own about 1 million bitcoins which translates to about $34.9 billion in 2021.
The value of Bitcoin
The value of Bitcoin keeps crashing and raising as per the market trend and the international economy. Bobby Lee, founder of cryptocurrency exchange BTCC, predicted that bitcoin could rise a further 500 per cent before the market downturn takes place, building on the massive gains it has experienced over the last year. Currently 1 Bitcoin is priced at 29,14,933.80 INR. When surveyed by Forbes, analysts offered mixed responses to the report's prediction that bitcoin prices could reach $96,000 that is 70,12,180.80 INR by 2023.
What causes Bitcoin to crash?
The crypto currency market is experiencing a huge down fall, with the value of the market losing almost 25 per cent over the last day. The market is facing this fall because of the new fears about the regulation in China. In addition to this, Elon Musk has announced in his tweet last week that Tesla would stop taking bitcoin in return for cars because of the climate impact of crypto currency.
What causes Bitcoin to rise?
The crypto currency market has seen a vigorous growth in 2021. The total market capitalization value climbed over 200% within four months.
1. An important reason for the rise in crypto currency market is its growing adoption as a payment method. The increased demand and limited supply push the price per bitcoin upward.
2. The quantity is limited. There is only 21 million Bitcoin that will ever exist. There will be no more and no less and this number will always stay static. This makes bitcoin more scarce than anything that has come before it.
3. Bitcoin mining requires a great deal of energy, and this has a real cost that must be paid by miners in their local currency.
