The reason behind the crash of bitcoin
Bitcoin is the first ever coin to come in existence, which was created has a mode of payment, Bitcoin (₿) is a decentralized digital currency without a central bank or single administrator, To be sent from user to user on the peer to peer network while not the necessity for intermediaries. Which was invented in 2008 by an anonymous person or group of people called satoshi Nakamoto.
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bitcoin has been used has a mode of payment by the backend users from dark web and slik road where it is being used as a mode of exchange for stolen goods and services the reason behind this motive is due to the anonymous mode of payment that bitcoin posses where the buyers don’t know who the sellers his and sellers don’t know who the buyers is due to the fact that it’s not traceable unlike regular cash where you’ll trace what bank and name of receiver or seller. Now this increase the use of bitcoin and made it popular on local news and international community due to the hype of how it’s impossibility to be traced and track of either the receiver or sender.
At the other end cryptocurrency is seen as an asset that grows in space of time other than our normal currency and this is due to the ratio of supply and demand of the coin the more the demand the higher the rate and which made investors give a trial of funding to bitcoin.
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A few native and national governments' area unit formally victimization Bitcoin in some capability, with countries, such as El Salvador and therefore the Central African Republic, adopting it as a tender. The original means of bitcoin crashing is due to the circulating supply limit which is 21,000,000 Satoshi (bitcoin) and current has at more the totals circulating supply is 18,925,000 satoshi (bitcoin) which has given higher edge to most investors who have whale share of bitcoin which makes them withdraw from bitcoin and investing on newer coin that has higher supply limit and has lower price other than bitcoin for a highlight you’ll remember dearly of a bitcoin wallet that contains 791 BTC ($25.7 million at a current market price of $32,500) and that has not been active for almost 10 years got activated and 640 of these bitcoins, worth over $20.8 million, was recently withdrawn from the account which is a big draw down to bitcoin. We have other whale investors who are withdrawing their satoshi and this is the cause of the crash in bitcoin and am afraid bitcoin may not survive this in the next few years from now. In my next post I will discuss what coin whale investors are adopting and why they've been adopted.
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