We know the volatile nature of bitcoin and other digital currencies. It did fall to around 30 percent at one point, and it was speculated by the Chinese-based bank earlier as they have been talking about the risks associated with the cryptocurrency. Soon the decline, however, slashed down, reaching 10 percent in the afternoon, which made Bitcoin still lose around 70 billion USD in just a day in terms of its market value. Bitcoin was seen losing around 38 percent of the value around two months back in April, while it did hit close to 65K USD as per the exchange Coindesk. The warning from China was seen being taken lightly, and many of the companies, including Tesla, were seen coming up with the idea of accepting Bitcoin as the form of payment. The price would remain at the best slot for Bitcoin, feels the experts despite the downfall in the price.
We know Bitcoin to be a cryptocurrency, which is yet to be tried by any bank or state government, and thus the users are allowed to consume it anonymously. The coins are mined and developed like fiat currencies with the help of complex computing languages and other similar mechanisms. Thus when they follow this strenuous job, they end up getting bitcoin in exchange. Also, one can use these coins to replace them with USD and other fiat currencies. Several businesses have even started accepting the payment. While Bitcoin is something, when they travel, they follow a digital sign whenever the transaction is made. Digital currency follows anonymous kinds of transactions, which becomes a matter of concern for many countries, thus banning their places or having strict regulations. They feel that criminals can use these provisions. Why not understand this on sites like http://bitcointraderapp.org
When it comes to storing the bitcoins, digital wallets could be either on the internet or via the exchanges called Coinbase and others. There is no provision to operate the same via offline mode. As per Coinbase, there are around 19 M bitcoins that are in circulation. These are expected to grow by 2 million, reaching 21M in the coming few weeks. The reasons are still obvious and confusing at times, as many of the bitcoins can remain the guesswork of anyone. Now, the big question, what has happened to the price? As per the recent statement issued by a Chinese bank, people should avoid using bitcoin as they feel that it is very volatile. They claim that the virtual world is vulnerable, and thus many of the digital currencies are expected to get hampered in this way. They claim that the recent fall of prices for Bitcoin is a similar phenomenon and the reasons are obvious.
Now, talking about the role of Elon Musk, the blood bath for Bitcoin and other said digital currencies started from him. Musk first announced that he would be accepting Bitcoin as the payment option, and he has even invested a whopping $1.5 billion in this coin. His action further propelled the buzz around bitcoin, which further ended up making the price higher. But Musk, on the other, took a short time to take his statement back, claiming that Tesla would not accept the same coin as a payment option. This happened when the price further went down, reaching somewhere 50K USD. Several Bitcoin fans were seen backing the reasoning of Musk. One of these included Mark Cuban, the billionaire who claimed gold mining to be damaging in this environment when we compare it with bitcoin mining.
As per the 2019 study carried out by the Technical University of Munich along with the people in MIT who claimed that the Bitcoin network is not going to go similarly as far as the carbon dioxide emission is concerned. Experts equated that with the amount of electricity needed in an island country like Sri Lanka, the emission has become a major concern for many. However, as per another study conducted by the University of Cambridge, relying on renewable energy can slash down this problem in a big way. So, the detractors have no other argument to make when it comes to getting critical of digital coins. We see some of the companies are still using Bitcoin, so the trend of using the same would continue in the coming future as well.