Have you noticed that Crypto Currency Drop And Rise Continues During Holidays Trading? Do you know cryptocurrency dropped? This drop has emerged and continues during the December holidays. So, what do you know brought about the cryptocurrency drop in the first place? There are many reasons to which cryptocurrency dropped and among them include the China decision towards banning initial coin offerings (ICOs) in the country. There is very possible for the cryptocurrency market to hit whenever government sanctions are imposed. This China’s decision is bound to affect popular cryptos like Bitcoin and Ethereum.
What is CryptoCurrency
Cryptocurrency is referred to as a digital asset programmed as a medium of exchange wherein coins owned by individuals are stored and used in a computerized database using a secured transaction record entries.
Types Of CryptoCurrencies
There are basically different types of Crypto Currencies. Some of these include:
- Bitcoin: This is the world most known and used cryptocurrency. Most people and companies are currently viewing Bitcoin as a true and secured means of exchange. And they partner with an exchange to convert the Bitcoin into United States dollars before they receive their funds. The current price for one Bitcoin costs about 9,220.97 United States dollars.
- Litecoin: The Litcoin was formally introduced and released in 2011. It’s likely to have the same structure as Bitcoin. Litecoin is the second or third most popular cryptocurrency by the traders market capitalization.
- Ripple: This was released in 2012. It is noted for a consensus ledger system that speeds up the time for transaction confirmation and blockchain creation. The Ripple is easily converted to money than other cryptocurrencies. And it can be converted into U.S. dollars, euros, yen, and other common currencies.
- Ethereum: Ethereum was launched in the year 2015, and it makes some noteworthy improvement in the basic Bitcoin development.
- Dogecoin: This is a variation of Litecoin. It has a shorter block chain creating a time of about one minute.
- Coinye: The coinye is a semi-defunct cryptocurrency whose worth is mentioned solely for its unusual backstory. It was developed in 2013.
Uses Of Cryptocurrency
The digital currencies were created with a wide range of uses. Some of its uses include:
- Low-cost money transfer.
- A censorship-resistant alternative store of wealth.
- It can be used to invest in innovative early-stage startups.
- Make private transactions.
- Send non-cash remittance.
- Get paid to post content.
- Travel the world.
- Buy items online and income companies.
Why Does The Price Of Cryptocurrency Change So Often
The change in the price of cryptocurrency is called volatility. Other commodities can be quite volatile moving up and down against a base currency which can be US dollar. It has a history of price fluctuations regularly. Investors can buy these currencies at a low price and sell it at a much higher price. It is difficult to predict.
During the holidays, the cryptocurrency market was overheated. Before which the price was high. Each Bitcoin date of price breakthrough is have always been followed up by price drops. But the price breakthrough has begun and the cryptocurrency market is already recovering from this drop. Also, cryptocurrency traders and investors are shunning risk, of reasons due to the growing conflict on how the United States claims about China’s handling of the coronavirus outbreak. If this risk persists and gets worst, Bitcoin may suffer more drop towards the 200-day average of about $8,000.
According to an article published by CNBC, Thursday, April 30th, 2020, the market value for cryptocurrency moves past $35 billion in 24 hours. Wow! Well, this is all due to a surge in bitcoin. Experts in the field attributed this to two factors mainly. One of the factors was due to the new central bank monetary policy. The second factor was due to an upcoming event known as bitcoin halving. If you are a participant in the industry, then you should know about this. In general, everything that has led to the increase in bitcoin can be fast-tracked to the coronavirus pandemic
More Reasons Crypto Currency Will Drop
CryptoCurrency market may undergo more drop after gaining a price rate of about $9200 per Bitcoin. Reasons to this drop may include:
- CryptoCurrency interest in Google trends has been decreasing since early February 2018.
- The monthly Bitcoin trading volume has been decreasing for months.
- There has been an ongoing post that Bitcoin follows an up and down trend between the 6th of each month.
- Bitcoin price also drops due to the unlicensed securities of some ICOs.
- Google has banned ads containing cryptocurrency.
- People who are stuck with huge tax have two options of either paying off their tax or selling their cryptocurrencies.
- There has been a hassle between the two groups of BCH communities. (Which are the Bitcoin ABC and the Bitcoin SV).
History Of The Biggest Drops Of CryptoCurrency (Bitcoin)
There have been some huge price falls of the Bitcoin since date. Some of these dates are:
- In 2011, the price crashed by 93%.
- In 2012, the prices dropped by 57%.
- Also, in 2013, the price collapsed to 87% which lasted for about 411 days.
- In 2017, the price dropped to 59%.