The things that make Bitcoin price continue to plummeted

The things that make Bitcoin price continue to plummeted

Bitcoin prices gradually dropped. The low point occurred on Wednesday (21/11/2018), where the price of Bitcoin crashed 25 percent in a week. If measured from the end of December last year until now, the price of Bitcoin dropped 75 percent. Referring to blockchain.com, the New York Times reported Bitcoin exchange rate against the US dollar on that date is 4,035 US dollars. 

Today, Monday (26/11/2018), the price of Bitcoin is back down to the number 3,824 US dollar (about Rp 55.4 million) from the same source.

Bitcoin

There are at least five main reasons why Bitcoin prices and other digital currencies continue to plummet, as KompasTekno summarized from the New York Times, Monday (26/11/2018).

1. Infrastructure and exchange rates unregulated most of the cryptocurrency trading takes place outside the United States, where such an exchange of minimal scrutiny from the well-known US regulatory body is strict. It gives investors the space to keep stocks free, although the danger is obvious. Bloomberg reported that the United States Secretary of Justice conducted a criminal investigation of the manipulation using one of the cryptocurrencies, Tether. Tether is called making unrest among investors. Texas University researchers publicized the results of its findings indicating that Tether was used to pump the price of Bitcoin DKK manipulatively. Some sellers have to sell Tether in a losing state, in order to get their money back. READ ALSO: Bitcoin price touch the lowest point in the last 1 year the cryptocurrency traders also doubted OKEx, a Hong Kong-based digital currency exchange agency. OKEx is known to often replace the rules early without telling the cryptocurrency traders. One of the investment managers, Amber AI said that many of the customers were massive losses due to the change in regulation. Knowing a lot of the losers, OKEx apologized to his customers, for replacing the rules that caused the trading hassled.

2. Regulator actions one that boosts the value of Bitcoin DKK is an Initial Coin Offering activity or a coin offering, similar to the IPO that many companies do to seek funding. The ICO also allows startups to get funds, but without involving regulators. This attracts the attention of the Securities and Exchange Commission that assesses the ICO will violate some applicable securities rules. They currently give sanctions to companies that violate securities laws with their offerings. The Securities and Exchange Commission has given sanctions to two companies conducting the ICO. They are required to return money to investors, while the case will still be processed in the future. 

3. Community regulated, not the government because it is out of the government, the cryptocurrency is governed by a community of developers that means it will be more vulnerable to weakening. Judging from its history, one of the largest cryptocurrencies, Bitcoin was created in January 2009. Over the years, members of the Bitcoin community are working together to improve the software. Gradually, the cooperation faded. After a long debate, one of the groups released a new version of Bitcoin software. This version has different rules and is being promoted to a new stronger cryptocurrency named Bitcoin Cash. READ ALSO: Price of Bitcoin and fall IDR 15 million in a day, the alleged re-emerged from the group of Bitcoin Cash, which then broke into two camps. Bitcoin Cash broke into two, namely Bitcoin ABC and Bitcoin SV. In the world of software, one parent package software that 

Split into different pieces called forks. However, the new fork could not replace the original Bitcoin. Nevertheless, they have the opportunity to create chaos in the crypto trading market. 

4. Unreal Solutions Bitcoin creators have the vision to allow Bitcoin to make payment transactions instantaneously across countries, without having to be confused about the currency exchange rates of different countries. One of the other great common cryptocurrencies is Ethereum. Ethereum, until now still tries to create a superglobal computer. Thousands of other tokens are also created for large purposes. But so far, these tokens are only used for speculative trading. The developers say that Bitcoin, Ethereum, and most cryptocurrency hobbled because of technical problems that make their tokens difficult to use for real-world transactions. READ ALSO: Saudi Arabia officially disallow Bitcoin those involved in the cryptocurrency industry do offer solutions to facilitate transactions in the future, but they are slow to produce. 

5. Government intervention so far, governments in many countries seem to be cryptocurrency opposition. However, according to Christine Lagarde, Managing Director and Chairwoman International Monetary Fund (IMF) said the digital currency could increase the payment network. He also said that the government could take part in regulating cryptocurrency more effectively and to eliminate the problem of lack of trust that would instead be cryptocurrency.

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