What is the reasons for the falling value of Bitcoin ?
Hi guys, today I want to mention why the price of Bitcoin and other Cryptorurrencies are still going down.
Negative Criticism by Billionaires
Bitcoin increased the value of price and popularity with last year. It has been falling down since the new year started. Currently, the value of Bitcoin is approximately over the 6000 $.
Further, some billionaires and millionaires have warned us to stay away from all Cryptocurrency like Warren Buffett and when Bitcoin price was around $3000, Mark Cuban said it could be bubble please be careful! On the other hand, some entrepreneurs are still supporting the principle of Cryptocurrency and they believe it to be a new monetary revolution. I think, everything is possible but we know one key point, if billionaires and entrepreneur are not behind Cryptocurrency, our imagination could be lost.
Slow Network !
When Bitcoin is announcement we encountered the most important purpose of it is fast, reliability payment system but nowadays Bitcoin can handle 3.3 and 7.7 transactions per second. If we want to check other competitors for examples, PayPal can handle 200 transactions per second moreover, Visa INC can process as many as 24.000 transactions per second. Firstly Bitcoin was rival all the banking system but now it is behind all the banking system and Cryptocurrency as a transaction per second. That’s why Bitcoin has been falling down for 6-7 month.
High Transaction Cost
Previously, Bitcoin transaction was cheap and fast but with the level of difficulty mining, cost provided too much expense like wallet fee, network fee. Currently transaction fee sometimes more expensive than customary payment system. For this reason, tell me guys who want to use Bitcoin or another Cryptocurrency instead of payment system which is depend on banking and governments?
Blockchain More Important
First times We were seeing Bitcoin news as a revelation system or it will use by Billionaires and Millionaires but it did not happen yet. Even Blockchain is being taken attention by millionaires and big companies. For instance, Alphabet INC parent Google newservice introduced to cloud platform ( Google Drive ) supporting. At the sametime, Nasdaq used blockchain system to issue private something shares to an investor. Briefly, people and companies more care Blockchain instead of Bitcoin.
Too much cost for miners.
Previously, mining of Bitcoin was a profitable venture but it is not realistic anymore. Since the level of difficulty increased caused huge expense like electricity, hardware. Therefore, many miners decided to leave from this system.
Now, I want to compare with ordinary banking credit card and Bitcoin payment system. For example, if you lose your credit card or password, you can call the customs service to get help from personnel. End of the calling you make sure about money placement. Even after 5 minutes, you can reset account password but if we think Bitcoin payment systems, there is no customer service or any people for help when you make a monetary mistake. If you are not careful, you can lose all the fortune.
Regulations
Many countries or establishments implement some forbidden which is like you read a news and listen. To illustration, China blocked all the ICO ( initial coin offerings. ), Vietnam has been blocking all Cryptocurrency transaction, South Korea increased level of tax as a %24 6-7 month ago. Also, US and E.U countries want to implement some heavy regulations.
Consequently, because of this reasons value of Bitcoin continue to falling down. I hope after a few months it will be fixed 🙂