Why bitcoin is falling!
I woke up this morning and had the courage to open the Coinmarketcap , if you were like me then you found a nice surprise!
So red and not green, with drops from 10 to 20%! So what are the causes of this important collapse of bitcoins and cryptocurrencies ?!
We know that bitcoin is not regulated by banks and governments but is based on people's trust, or rather on supply and demand. It means that as we have already seen other times, when they follow negative news or otherwise "against" bitcoins, many sell for fear (panic sell) or for trading.
Yes, because these collapses for many are losses, for others it is the right opportunity to let us trade and earn from these salts and downs.
But let's get back to us and try to understand together the causes of this collapse.
Two days ago there was an attempt to hack the well known Binance exchange , many say it could not have influenced the descent of the crypts, but perhaps in low percentage it was one of the causes.
The main cause seems to be the SEC, or the American Consob. The SEC claims that the exchanges should register under their own administration as they offer digital asset trading, and for federal laws they must be registered with the SEC.
Many investors believe they are dealing with regulated and registered markets, but the exchanges are not. Obviously the SEC deals with the US territory, but this news soon turns the world and also involve the other states with relevant control authorities.
Another piece of news is the statement by the Director-General of the Bank for International Settlements based in Switzerland, which claims that Bitcoin is a bubble, a Ponzi scheme and that leads to environmental pollution.
Still to stay in the negative news, Kenneth Rogoff, Harvard economist predicts that bitcoin will drop to $ 100, and the probability of this happening is much higher than the bitcoin prediction at 100,000!
Japan blocks transactions on two Exchange. The authorities have ordered to temporarily block the operations. The FSHO, in fact, does not seem to have an adequate system of control and has not properly trained its employees, while Bit Station seems to have "manipulated" some customers for their own interests.
So the two platforms are blocked for a month.
And to end with the negative news that afflicts bitcoin, a good fault could have Mt.Gox, or the biggest bitcoin exchange of the debut, but in 2014 it has failed because of hackers. After years, then, the bankruptcy trustee sold large sums of bitcoins, changing them into fiat coins, to repay the creditors. It is estimated that almost 36,000 bitcoins and as many bitcoins have been sold.
It has been an eventful week. Opportunity for us to buy some crypto.
Thanks for this overview. I was surprised as well by the hard drop, never had in mind that Mt.Gox still has to repay by creditors. I am not sure if all the analysts out there had this in mind while analyzing the charts...
Just my opinion. I think that the real threat to Bit coin is actually the push to go back to gold and silver backed currency. Bitcoin is after all a fiat currency and if the petro dollar and the yuan stay as fiat currency than Bitcoin has a level playing field, but if currency goes back on the gold standard than Bitcoin will lose because it will remain fiat. Gold backed currency has the advantage of fiat currency. That would actually be a good thing and Bitcoin would have done its job by decentralizing currency.