Bitcoin is a cryptocurrency and a speculative investment asset according to the perspective of mainstream market players. However, rather than just being an investment asset and a cryptocurrency, bitcoin is correspondingly the foundation of decentralized finance.
The core notion of cryptocurrency was invented prior to bitcoin, but only Satoshi Nakamoto was able to implement these concepts for the very first time; all the more Satoshi Nakamoto announced on the cryptographic mailing list that he is working on an electronic cash system.
You might be familiar with the fact that every possible privately mined cryptocurrency is subjected to decentralization features, which means that there are no government authorities and national powers to interfere in the network.
Undeniably decentralization of bitcoin is exceedingly beneficial, but it is correspondingly a drawback as it has aroused the volatility of bitcoin. However, traders and investors are still taking advantage of bitcoin’s volatility to make money. The Official Website that can help you get profitable results in your bitcoin expedition. Unfortunately, every investor in the cryptocurrency market place witnessed the volatility of bitcoin in recent times.
However, bitcoin has gracefully survived the menace hassle-free, and the pinnacle in the crypto industry is about to halt the value of $50000 again after months. Here is everything you should know about the sudden bitcoin surge; let’s dive into the facts.
Bitcoin touched $49,821
The cryptocurrency king, bitcoin, was trading for $49821 on the 21st of August. You might be familiar with the fact that bitcoin’s value was slumped in an enormous amount due to the cryptocurrency market crash.
On the 19th of May, the cryptocurrency market crash, and the value of bitcoin reached $30000, which is not even half of the recent peak of bitcoin. Bitcoin was trading at a value of $65000 in April, and it was trading at only $30000 after the cryptocurrency market crash; yes, you read it right.
After the cryptocurrency market crash, Elon musk and several investors indirectly indicated that investing in bitcoin is the most appropriate time. Seems like these renowned market players predicted the future bitcoin value in an absolute précised manner as bitcoin has surged almost surged 40% from its recent low. Not merely bitcoin, ether, the token of the blockchain-based model led by Vitalik Buterin, ethereum has correspondingly rendered a return of almost 80% in recent times.
Why did Bitcoin Dip?
As established ahead, bitcoin’s decentralized nature has aroused an exceeding extent of volatility in its price. The value of bitcoin is easily influenced by multiple factors, and one of these factors is media reports. The factor includes statements of renowned market players regarding bitcoin.
Crypto enthusiast is familiar with the fact that Elon musk is active in the cryptocurrency industry since a very long time and all of his statement regarding bitcoin has impacted the value of bitcoin in an exceeding extent.
On the 13th of May, Elon musk passed a shattering statement regarding bitcoin, which utterly changed the motion of the entire cryptocurrency market. Elon musk announced to accept bitcoin as a payment method in march 2021. However, on the 13th of May 2021, Elon musk posted a reversal tweet demonstrating the suspension of bitcoin as a payment method.
Bitcoin is generated by the bitcoin mining process, and in order to avail bitcoin as a block reward, every mine has to verify the transactions occurring in the bitcoin network. The energy consumed by bitcoin mining progression in order to verify the transactions for availing bitcoin as a block reward was gigantic, as per the tweet.
The most frequent energy source utilized in bitcoin mining progression is electricity, as it is readily available. As per the tweet of Elon musk, the electricity consumption of bitcoin mining has led to a massive amount of fossil fuel burning, especially coal. The tweet of Elon musk slumped the value of bitcoin to an exceeding extent.
Subsequent to the Elon musk tweet, china hammered the iron by announcing a cryptocurrency crackdown in the country. On the 18th of May 2021, China announced a crackdown in the country, and on the 19th of May 2021, the entire market crashed as the value of bitcoin and tether digitalized coinage was already low. In a nutshell, china and Elon musk were majorly responsible for the cryptocurrency market crash.
This is everything you should know about the recent sudden surge of bitcoin.