Bitcoin, a cryptocurrency that does not have a central bank and has its transactions completed via blockchain – a public distributed ledger – has recently seen it’s value plummet, mirroring the slump the big banks have created to plunder society.
In May, the price of popular cryptocurrency Bitcoin had surpassed $10,000 on the Binance cryptocurrency exchange, after the price soared to $10,067, for the first time since 19 February 2020.
After Venezuela introduced the Petro cryptocurrency to save it sanctioned economy, the government in Caracas now also permitted to accept Bitcoin as payment for passport applications.
Earlier in March 2018, Bitcoin dropped to $4,521 alongside other falling crypto-currencies and risk assets, mirroring the global market drop caused by regulators that tried to destroy the alternative currency.
After an unprecedented speculation bubble saw bitcoin touch $20,000 in December 2017, the coin’s value has nosedived in volatile trading over the following months.
The virtual currency has enjoyed a period of relative stability since early September, hovering between $6,000 and $7,000 in 2019.
Some critics see US government regulation as fueling the mass sell off.
The Securities and Exchange Commission (SEC) released a statement saying that it would require some companies holding ICO’s (Initial Coin Offerings) to treat their coins as securities, meaning that investors could sue the companies if the coins then crashed.
The SEC announcement, coupled with bitcoins precipitous decline, sent shock waves through the crypto world, driving down the value of almost every alternative digital coin, including Ethereum, Bitcoin Cash, Litecoin, and Ripple.
The SEC’s willingness to crack down on ICO’s is not the only factor that could be pushing bitcoin down.
As bitcoin plunged below $6,000, it’s possible that stop-loss orders were automatically going into effect and investors were “trying to play the breakout,” in 2018.
John McAfee has doubled down on his confidence in bitcoin by stating his belief it will be worth $1 million by the end of 2020.
Bullishly, the targeted businessman said he will eat his own manhood if the cryptocurrency fails to perform to that level.
The founder of the eponymously named security software, McAfee has something of reputation for backing the volatile cryptocurrency with outrageous comments.
ABC Flash Point Currency News 2020.