Bitcoin is Crashing

Bitcoin 1

Illustration/CC

Bitcoin is crashing! The cryptocurrency has experienced some serious fluctuations of its price this week, falling by nearly 4 thousand dollars in just a few hours.

When it comes to market volatility, only bitcoin is able to reach the peaks and then hit the bottom in a matter of days. The cryptocurrency, which was close to reach 20,000 dollars on Monday, fell below the bar of 13,000 dollars late Friday afternoon. That’s a 35% drop in five days. The fall was particularly brutal between Thursday and Friday when the price of bitcoin lost $ 4,000 in a few hours. Coinbase, one of the main platforms for the purchase and sale of cryptocurrencies, has even announced the temporary suspension of trade because of too many connections.

For the uninitiated, Bitcoin is what is called a cryptocurrency, a virtual currency that can be bought and resold via online platforms. It was introduced in 2009 by an 00 obscure individual by the name of Satoshi Nakamoto who has seen disappeared.

The particularity of bitcoin is that its price is independent of any central bank. It is in fact a non-regulated and decentralized currency where all transactions are verified by the “nodes” of a network, that is to say the computers of cryptocurrency users.

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In recent months, the cryptocurrency has been the subject of particularly intense speculation.  A year ago, it was worth less than a thousand dollars per unit, an increase of at least 1300% in twelve months. It has attracted the interest of Internet users and businesses around the world, as well as the concerns of many authorities.

However, it’s not the first time that bitcoin has suffered such a crash. The price of the cryptocurrency is particularly volatile. Nevertheless, this one is particularly violent. The reasons for the massive crash are still unclear. But there are some suspects: the hacking and the closing of a big platform of exchange in South Korea and the suspicion that Coinbase employees are involved in insider trading on the exchange of “bitcoin cash”, an alternative to bitcoin.

Shakes Gilles

Editor of The Talking Democrat. He enjoys bike riding, kayaking and playing soccer. On a slow weekend, you'll find him with a book by the lake.