Bitcoin has always be covered in a dark cloud of sceptics. Many professionals believe it to be a fraudulent bubble that will burst at any moment. That said, unless you have been living in a bubble, you will know that the price of Bitcoin is at an all-time high, causing its popularity to soar.
Bitcoin was discovered years ago in 2009, with the development of the blockchain; which in other words is the code that allows users to transfer digital assets directly to other users, in a secure and verifiable format. Bitcoin is the original blockchain currency and arguably the most popular. Whilst the price started at just a few pennies, it is now close to $20,000 per Bitcoin.
Bitcoin has now entered a bear market though, as it is trading today at $15,700, meaning that it is down 20% since reaching the very recent high. The definition of a bear market is down 20%. However, the ones out there that believe that Bitcoin is destined to fail, have been quick to bring up the fact that this is not the first bear market for Bitcoin.
It is very important to note as well that in terms of power consumption, Bitcoin is bigger than Denmark. This is incredibly huge, and very few people actually understand how Bitcoins work, and how the transactions are carried out, not to mention the huge amount of energy it uses.
It is all of the above points that lead many to believe that the Bitcoin bubble will suddenly burst. It was originally designed to be an alternative to traditional currencies, and despite the number of different cryptocurrencies, this just hasn’t happened. It is an incredibly high risk investment, and one that people still actually know very little about, which makes it hard for banks and retailers to get fully on board with it.
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