It is well said that bitcoin is that highly volatile digital currency in the market. Any kind of announcement related to the bitcoin, which the top businessmen and celebrities can flip the value of bitcoin within a couple of minutes. This kind of incident occurred in recent times when Tesla’s owner Elon Musk tweeted that his company will no more accept the payments in the form of bitcoins from the customers who want to buy a vehicle from Tesla. To avoid using bitcoin, the reason is the level of emissions of fossil fuels utilized for bitcoin mining or conducting bitcoin-related transactions. Every investor was shocked after seeing this announcement because it was really shocking as he had invested a billion in the bitcoin couple of weeks ago.
This news resulted in flooding in the entire crypto world because the bitcoin value start falling, and within 24 hours, the 30% fall was noticed in the value of this digital currency. Even the fall in its value affected the value of other digital currencies such as Ethereum and Dogecoin. The bitcoin-billionaire is the best alternative to trading without any hassle.
- The researchers claimed that this plunge in bitcoin’s value resulted in the loss of billions all over the world, which was not at all expected. After a few hours of a tweet by Musk, China also prohibited the ban on institutes and firms offering the service related to bitcoins and other cryptocurrencies worldwide. Every investor has the same question in their mindset that how the biggest electric vehicle manufacturer was suddenly concerned about the environment after investing billions in bitcoins. The strange part is that he also mentioned that he would store his bitcoins until the conservative mode to perform a bitcoin transaction is discovered.
- You would be aware that bitcoin is considered the top-rated digital currency of the world, which is why it was shocking to notice such a tremendous drop in its value. One of the bitcoin exchange platforms revealed that it reached as low as $31,926. But within a few hours, there was an improvement in the value of bitcoins, which rose to $38,136. The bitcoins are termed as the king of cryptocurrencies, and the majority of people have a significant part of investment in the bitcoins as observed in their portfolios. The reports suggest that the value of the bitcoins has dropped almost 50 percent from 20th April, which is expected as the massive fall noticed in many years.
- It has been noticed that China has very rigid banking institutions and payment system which offers a very smooth service to the users who want to access the bitcoins. The majority of people are obsessed with the approach of bitcoins because it is much convenient to the user and has become the topmost preference from the investors over China. China’s government attempted to wipe out the flourishing crypto market so that their banking system can be adequately managed without any kind of interference or involvement of decentralized currency.
- The major pushing down reason for bitcoins by Elon Musk is that cryptocurrencies like bitcoins are energy-intensive. They require a much higher level of energy for performing tasks like a transaction as compared to what is necessary by fiat currency. Bitcoin mining and transactions related to bitcoins lead to lots of carbon emissions, which is a dangerous thing for the environment. But just like other organization which runs on power buys electricity from the power grid, bitcoin also does the same. It purchases power from the power grid, which is leading to more revenues of power stations as their demand is getting raised by several users.
- Every bitcoin investor should understand that bitcoin value is not only affected by the rise in sell and purchase volume, but any kind of tweet by bullish people can flip its value within a few minutes. There are regular fluctuations in the value of bitcoins, and if one notices a very unexpected drop, he should research and try to buy bitcoin at that time. It is because bitcoin has made its permanent space in the market, and it can quickly recover to its highest point within a specific period.
