Since the beginning of this year, the euro has been dragged down by Brexit. The trade tension between the United States, the European Union, and emerging countries has intensified. The complicated international situation has provided a golden opportunity for digital currency to prove its value as a substitute for traditional currency. However, Bitcoin currency and other digital currencies have not made a comeback.
‘If Bitcoin is still not profitable in this extremely favorable situation, then when these problems are solved, it is even less likely to prosper,’ British researcher Windsor Holden said in a new study on Tuesday. Said. ‘We think the industry is on the verge of collapse.’
According to CoinDesk, the market value of the world’s largest cryptocurrency has plunged 52% since the beginning of the year and has fallen more than 65% since it reached a high of $20,000 in December. A series of events, such as global regulatory crackdowns and hacking attacks on global exchanges, are behind the scenes. As early as August, the total market value of global cryptocurrency fell below the $200 billion marks for the first time this year and fell more than 70% from January.
Wall Street has been very hesitant to accept cryptocurrencies. The CEOs of Warren Buffett and Jamie Dimon issued warnings about Bitcoin trading, while New York University economics professor Nouriel Roubini called It is the ‘female of all the bubbles’ favored by ‘swindlers’ and scammers.
In a white paper, Holden said that with the research of researchers, ‘the company’s relationship with cryptocurrant skeptics is getting closer and closer; we don’t believe that we can return to the level that appeared in 2017… Indeed, we further believe that the collapse of cryptocurrency is very likely.’
Other cryptocurrencies are as difficult as Bitcoin. According to CoinMarketCap.com, the total market value of cryptocurrencies has fallen by more than 60% this year.
Holden pointed out that there are other problems in the cryptocurrency industry: the personal base that is willing to pay a high price for cryptocurrencies has declined, credit card companies have banned customers from paying Bitcoin on cards, and social media sites have banned the initial coins from advertising.
‘Overall, this means that demand can be drastically reduced, and the investment in Bitcoin will be significantly reduced,’ Holden said.
The researchers also highlighted the potential of Bitcoin as a means of money laundering and the purchase of illegal substances, as well as its continued volatility due to difficulties in accepting mainstream society.
However, others are more optimistic about the underlying technology blockchain. The blockchain and encryption company’s equity investments have attracted the support of top venture capitalists like Andreessen Horowitz and David Swensen, an influential investor at Yale University.
Bitcoin Info
Bitcoin price today is $6329.58, decreasing 4.34%. From the price chart, we can see that the Bitcoin price is declining.