Updated: 11/22/2018 20:42
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five reasons bitcoin price decline
Bitcoin price decline, analysis, read about the possible reasons of the decline from 20000 usd in January to 4000 now
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Bitcoin price decline, analysis, read about the possible reasons of the decline from 20000 usd in January to 4000 now

The price of bitcoin fell from $ 20,000 in January 2018 to the current $ 4,000 due to the recent collapse. It seems that the main cryptocurrency has some serious problems that prevent its widespread worldwide recognition.

Here are 5 reasons that indicate that bitcoin can fail miserably before getting back on its feet.

Hacker attacks

In the history of cryptocurrency, serious hacker attacks took place, and participants in this market became victims of fraudsters, which led to huge losses of money. These were hacking exchanges, fraudulent offers of coins through ICO, data theft through the substitution of SIM-cards and other actions of intruders who caused damage to the reputation of cryptocurrency. This may alalso happen in the future.

Lack of proper regulation

Governments of different countries regulate cryptocurrencies in different ways, as their current legislation allows. For example, the island state of Malta welcomes cryptocurrency business, and countries such as India and China impose a strict ban on the use of cryptocurrencies. Therefore, the future regulation of this industry remains unclear. If, at some point, most states succeed in imposing negative regulation of digital assets on others, this can lead to the fact that only a few will be able to use cryptocurrency as payments, and this can lead to a serious decrease in their prices.

Miners' exit from the game

A massive increase in the number of bitcoin miners was observed when the price of bitcoin was on takeoff. More and more companies then started mining Bitcoin, as this business turned out to be very profitable compared to other activities. The fall in Bitcoin prices this year also caused a hash rate drop of almost 50%. The fall in the hashrate is also to some extent due to the ongoing hash wars after the Bitcoin Cash hard forks. In addition, China, where the largest bitcoin mining companies operate, has increased electricity tariffs for miners. All this leads to the fact that mining of bitcoins becomes unprofitable.

Wars in cryptocurrency sphere

Bitcoin Cash hash wars have led to a sharp fall in cryptocurrency prices over the past few days. The Bitcoin network survived Segwit2x, which failed to break Bitcoin, as well as many other forks. However, continuous hash wars create a sense of fear, uncertainty and doubt (FUD) - especially among newcomers to the cryptocurrency space.

Economic crisis

Analysts predict that the global recession is on the way and in the coming years will surely reach all markets, including cryptocurrency. Inventories, real estate and other investments, including cryptocurrency, can be significantly affected by the global crisis. Bitcoin has experienced many adversities since its inception, but the global economic crisis may slow its adoption.

About the author

Brett Sherpan has been working for seven years writing and editing for online and print media. He has held various editing and copywriting positions and can quickly and competently write copy for sales, marketing and editorial content. Brett is a consistently dependable team player, who thrives in a high-pressure environment, enjoying the challenges of meeting deadlines and am comfortable researching, writing and editing on a wide range of topics
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