There are many ways to get rich. Some people choose to invest in a business, some in the stock market, and some in crypto currency like Bitcoin. In the beginning, Bitcoin was the lone star in the sky of crypto currency, but as time went by it proved that it isn’t as good as everyone had hoped. This made many people lose their faith in crypto currency and even though many new currencies have been introduced since then, no one is convincing enough. After all these years we finally have a few promising options with us that are definitely worth investing in the so go to bitcoin era.
Bitcoin has been a hit ever since its inception. It is an open-source technology and it works on a peer-to-peer network without any central authority. Bitcoin simply means money! It is not regulated by any government or bank; it is just a digital currency that can be sent from one person to another. It is possible because the transactions happen between users directly. However, today we see that bitcoin is witnessing downfall. Cryptocurrencies are becoming increasingly popular as means of exchange. However, Bitcoin, being the first cryptocurrency and with a market dominance of about 60%, has been witnessing falls recently. This is due to several reasons.
- Reasons for fall in bitcoin prices
Over the past few months the value of Bitcoins has fallen quite drastically which makes one wonder what exactly is going wrong with this digital currency. The reason for this downfall has been identified and if you are interested in purchasing or investing in this currency then you need to know what all bad things can happen with it.
- New cryptocurrencies are entering the market
The biggest factor behind this downfall is the introduction of new cryptocurrencies in the market with better advantages. Ever since bitcoin was introduced, the world has witnessed many other digital currencies that have been introduced in the market.
- Environmental concerns
Another reason for Bitcoins downfall is the bad effects on the environment. The mining process used to run bitcoin makes use of high-powered computers which use more electricity and hence more heat generation as compared to usual computers. This results in wastage of energy and also increases pollution levels as these powerful computers require cooling systems to cool down the heat generated due to bitcoin mining process. Bitcoin has been one of the most popular cryptocurrencies around the world, but in recent years it has faced some criticism. The most notable downfall of Bitcoin is its impact on the environment. The amount of electrical energy required to mine Bitcoin is vast. As more people use Bitcoin and mine it, the more electricity it takes to mine throughout the world. The electricity used in mining Bitcoin could be enough to power an entire country for a year. Bitcoin mining consumes a lot of electricity which is not good for our environment and this is why many governments around the world have banned it.
- Profitability issues
Another major reason for bitcoins downfall is that people have started investing in other cryptocurrencies as they find them more profitable than Bitcoin. Another downfall of Bitcoin is the increase of new cryptocurrencies entering into the market. Some new cryptocurrencies like EOS and Ethereum have many advantages over Bitcoin such as lower transaction costs and faster processing times than Bitcoin. People are starting to move away from Bitcoin, but that doesn’t mean that all cryptocurrencies are bad. Some newer cryptocurrencies have found ways to solve problems that Bitcoin currently has.
Bitcoin was created to be a currency for the people that would allow for financial freedom and the ability to transact with anyone in the world without government or central bank interference. Over time however, Bitcoin has become an investment vehicle rather than being used as a currency. Since there is no central authority overseeing transactions on the network and no way to reverse them, there means that if someone sends you money then it can never be taken away from you unless they also agree to give it back – which makes it very difficult for businesses who need some kind of protection against fraud when accepting credit card payments online or via phone (e-commerce).