Why Bitcoin and Cryptocurrency are Crashing?

Cryptocurrency prices since the astronomical rise in 2017 had met with a huge accident in February early. And there are lots of coins to be expected to crash again. There’s a lot of struggle being fought for, first to replicate a huge upsurge. Speculators for cryptocurrency think that it was sold on a large scale to Coin for about 65,000 Bitcoins (BTC), which, after it went bankrupt, called off its proceedings.

This time there has not been an equally clear explanation for the sorry state of the market, because its bookies carved their own heads in it. There is no obvious reason behind this. There is a fairly obvious issue in this, that cryptocurrency markets have little weight on it.

Magic Fades

The recession is credited for fading the effects of senior analyst Clement Thibault, Magic, and the broken snowball in it. He had said that its recent performance in cryptocurrency markets, which has largely resulted in the loss of confidence. Some people want to get rich quickly by purchasing cryptocurrency.

At the end of 2017, it served as a snowball due to its price increase. It attracted many investors and its price was increased. When its market is quiet, the general population in it closes their profit window, so that people’s interest in cryptocurrency starts to disappear.

This is undoubtedly true. Whereas some of this is attributed to the so-called “whales” of major price movements. It puts enough crypto-money into it to deliberately or accidentally affect all market movements, it has countless and millions of main street buyers, the main driving force in its market, this one the confusion is stall. All exchanges found their own level of interest overwhelmed, with more customers present.

All its exchanges prevented the influx of new customers so that they could easily do their work on their backlog by previous applications. After it went offline at the Binance Exchange, it again opened all of its doors, allowing it to experience a strange wave of nearly a quarter-million new customers an hour. This would have a very high impact on cryptocurrency prices by an extraordinary income, which was well beyond the actual money volume of the market.

For this reason, it has a market cap which is considered a poor measurement of the real value of cryptocurrencies. A large flow of interest in this leads to inconsistent increases in prices. The Thibault said, cryptocurrencies may need to prove some of their mainstream values and all the utility, so that great improvement can be easily seen once again. It can also be problematic for everyone. Cryptocurrency can be divided into two different categories:

Monetary tokens

Are cryptocurrencies like bitcoin, designed to include the monetary value completely and make it transferable. It does not have implicit value.

Functional tokens

Ethereum such as cryptocurrencies is designed to receive all types of actions and its services beyond its monetary value. It has a monetary value and is also transferable, and it is on the basis of all its functions that the value of its kind is achievable.

Currently, this cryptocurrency is very oriented around its market monetary tokens. It has such top 5 coins in the market cap as it contains purely monetary tokens. Two of which are technically similar to bitcoins. Those who make the highest promises of unlimited value have untold funds for speculators, but may be unable to deliver.

Atif Mallo

Atif Mallo is a freelance blogger with huge interest in technology, science, life hacks and health. He loves coffee, cheesecake and chess. Drop a line in comments to leave feedback for him.

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