Bitcoin has dropped under $10,000 in value, from an all-time high of $19,343. According to CoinDesk, the cryptocurrency Bitcoin fell to $9,199.59 at around 12:00 GMT-5. This monstrous drop has left investors in great sufferings, as many had invested when it dropped around 20% before. Right now, Bitcoin has a circulating supply of 16,808,000 BTC which makes its market cap at $183.7 Billion USD. This is the biggest Bitcoin Price drop in 3 years!
Multiple causes, actually. First and the most influential – China is going to shut down Bitcoin Miners from continuing mining the cryptocurrency. Cryptocurrency mining refers to the use of computer processing power in order to process cryptocurrency transactions for different cryptocurrencies like Bitcoin, Ethereum, Ripple, and more. Bitcoin mining is estimated to be at 4 Gigawatts, equal to 4,000,000 Kilowatts. Bitcoin is also used on the Dark Web for purchasing illegal things and for other criminal activity. These two issues are the prime reasons for Bitcoin being ridiculed over.
What does this mean for investors?
Aside from a huge loss of money, of course, most investors would sell all the existing Bitcoins they have right now. But some very risky players might hold their bitcoins, as it could skyrocket once again if the Bitcoin miners are able to find a secondary location and transfer a decent amount of their mining processing power to other countries successfully and other issues get sorted out. Let’s hope for the best though, but there’s a good chance that the Bitcoin Bubble is finally about to burst.
What is Bitcoin, explained in the simplest language.
Bitcoin is a payment system in which people can transfer money in a short duration of time easily and efficiently, as long as they have internet access. The transactions are processed by Bitcoin Miners, which as said before provide computer processing power to process Bitcoin transactions. Problem with Bitcoin is that is used for buying illegal things on the Dark Web, the electricity costs and a very volatile price.