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Why is Bitcoin now down from all-time highs?

 

Bitcoin, the world’s first decentralised cryptocurrency, has now plunged. There could be many reasons why the price of Bitcoin has declined significantly from its all-time high. 

Where is Bitcoin now?

In early 2018, the price of bitcoin was hovering around $13,000, a significant drop from its all-time high of $19,783.06 reached in December 2017. However, in 2019, the price of bitcoin began to rebound, climbing back up to around $10,000 by the end of the year. This upward trend continued into 2020, with the price reaching around $12,000 by the summer and then surging to $18,000 by December.

The price of bitcoin continued to be highly volatile in 2021, with a sudden drop in early January and then a steady climb through the rest of the year. By December 2021, the price of bitcoin had reached $30,000. Nowadays, one Bitcoin worth is around $17,000, which was around $69,000 in November 2021, and then it reached $47,000 in January 2022. 

Why is Bitcoin’s price dropping?

Bitcoin started 2022 on a positive note, but certain unfortunate affairs brought too many swings in the cryptocurrency’s price, which made BTC crash over the past year. Here are some possible factors that could cause Bitcoin’s price to fall:

  • Rising inflationary fears:

Rising inflationary fears have a significant impact on the value of Bitcoin Currency and other cryptocurrencies. Inflation is a measure of the rate at which the overall level of prices for goods and services is rising. When inflation is high, the cost of living increases and consumers have less purchasing power. This led to a decrease in demand for goods and services, which in turn led to a decrease in the value of assets such as Bitcoin.

  • Uncertainty due to rising interest in the U.S. and the U.K:

Uncertainty due to rising interest rates in the United States and the United Kingdom had a significant impact on the value of Bitcoin. Higher interest rates make it more attractive for investors to hold fiat currencies, which has led to a reduction in demand for Bitcoin. Additionally, rising interest rates can also lead to increased volatility in the stock market and other financial markets, which also impacts the value of Bitcoin.

  • Terra-Luna crash:

The “Terra-Luna crash” refers to the failure of the Terra-Luna project, a cryptocurrency project that aimed to create a stablecoin pegged to the value of the moon. This project impacted the BTC price and investors’ confidence to invest in the broad crypto market. Additionally, the Terra-Luna crash also led to increased regulatory scrutiny of the broader cryptocurrency market. Regulators become more concerned about the risks associated with investing in cryptocurrency projects and take steps to increase regulation of the market. This led to increased costs for cryptocurrency businesses and made it more difficult for new projects to launch.

  • The collapse of the largest global cryptocurrency exchange, Future Exchange (FTX):

FTX is one of the most popular and widely used cryptocurrency exchanges in the world, with millions of users and a large volume of trades. The collapse between FTX and Binance, led to a decrease in demand for Bitcoin and other cryptocurrencies, as investors lost access to a major platform for buying and selling BTC. This showed a decline in the price of Bitcoin and other cryptocurrencies, as the supply of digital assets exceeded the demand.

  • System of taxation:

High taxes on digital currencies make it less attractive for individuals and businesses to use and invest in them. Leading to a decline in demand for digital currencies and their value. The government imposed a high capital gains tax on Bitcoin, which discouraged individuals from buying and selling digital currency, leading to a decrease in demand for its price. Governments should strive to create a clear and consistent tax regime that encourages the use of digital currencies while protecting investors and preventing fraud. 

Conclusion:

Bitcoin’s price is plummeting nowadays due to the FTX’s downfall. Furthermore, many other factors have contributed to the recent decline in the price of bitcoin, including increased regulatory scrutiny, increased competition from other cryptocurrencies, hacking attacks and security breaches, market corrections, and profit-taking. However, it’s important to keep in notice that the cryptocurrency market is highly volatile and that prices can fluctuate rapidly.

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7 Crypto Coins That Could Reach New All-Highs in 2025

 

Predicting which cryptocurrency coin will reach new all-time highs in 2025 is a challenging task, as the market is highly dynamic and subject to a wide range of external factors. However, several coins still have a high potential to reach new all-time highs in the coming years. The coins discussed below have a strong developer community and a wide range of use cases, and many experts believe that they have considerable growth potential. These coins include:

Bitcoin (BTC): 

Bitcoin is the most well known and widely-traded cryptocurrency with a strong track record of price appreciation. Despite its volatile price history, many experts believe that Bitcoin has the potential to reach new all-time highs in the coming years due to increasing mainstream adoption and the limited supply of coins.

As the supply of Bitcoin decreases over time, the scarcity of the coin is likely to increase, which could lead to price appreciation. This scenario is supported by several factors, including the limited supply of coins and the growing recognition of the benefits of decentralisation.  If Bitcoin can overcome some of the technical and regulatory challenges that it faces, it is possible that it could become a widely-used means of exchange and store of value.

The most powerful scenario about Bitcoin is that it will continue to exist and be used by a small but dedicated group of users, but will not achieve widespread mainstream adoption. This scenario will be supported by the fact that Bitcoin has a strong and passionate community of supporters.

Ethereum (ETH): 

Ethereum is a decentralised blockchain-based currency, that promotes the creation of smart contracts and decentralised applications (dApps). One of the key factors that could contribute to the future growth of Ethereum is the increasing adoption of smart contracts. 

A smart contract is a self-executing contract in which the terms and conditions between a buyer and a seller are written directly in lines of code. They have the potential to revolutionise a wide range of industries by reducing the need for intermediaries and increasing the efficiency and security of transactions. As more and more organisations and individuals begin using smart contracts, the demand for Ethereum is likely to increase, which could lead to price appreciation.

Cardano (ADA): 

Cardano is a decentralised platform that focuses on enabling the creation of secure and scalable applications. Cardano is also likely to benefit from the increasing focus on decentralised finance (DeFi). DeFi refers to a growing ecosystem of financial applications and services that are built on blockchain technology and are operated in a decentralised manner allowing users to access a wide range of financial services, such as lending, borrowing, and trading, without the need for traditional financial intermediaries. 

The DeFi space has seen explosive growth in recent years, and it is expected to continue to evolve and mature in the coming years. We will likely see more traditional financial services being replaced by DeFi platforms as they become more user-friendly and offer competitive features and benefits. Furthermore, with its high scalability, quick transaction time, and robust infrastructure, Cardano’s value could reach new heights by 2025 making it a great investment option for those looking for long-term gains.

Binance Coin (BNB): 

Binance Coin is the native cryptocurrency of Binance Exchange, one of the world’s largest and most popular cryptocurrency exchanges. It has a strong track record of price appreciation and is widely used as a means of payment on the Binance platform. 

The increasing adoption of cryptocurrency exchanges could contribute to the future growth of Binance Coin. As people become interested in buying and selling cryptocurrency, the demand for exchanges is likely to increase. This could lead to an increase in demand for Binance Coin, as it is widely used as a means of payment on the Binance platform.

Chainlink (LINK): 

Chain Link is a decentralised oracle network that enables the creation of smart contracts that can securely access off-chain data. The factor that could contribute to the future growth of Chain Link is the increasing adoption of decentralised applications (dApps).

DApps are applications that are built on top of decentralised platforms and operate in a decentralised manner. They have the potential to disrupt a wide range of industries by enabling the creation of more transparent and secure systems. As dApps are being developed and adopted, the demand for Chain Link is very likely to increase, as it enables dApps to securely access off-chain data.

Solana (SOL): 

Solana is a high-speed, decentralised platform that is designed to enable the creation of scalable applications and has a wide range of partnerships and collaborations. It uses a unique consensus mechanism called Proof-of-History (PoH) to secure its network and validate transactions. PoH is a time-based consensus mechanism that uses a distributed timestamp server to record the order of events on the network. 

The key benefit of PoH is its ability to enable fast transaction speeds. Because PoH does not rely on a traditional proof-of-work consensus mechanism, it does not require validators to perform resource-intensive calculations to validate transactions. This allows the Solana network to process transactions much faster than other blockchain platforms.

Polkadot (DOT): 

Polkadot is also a decentralised platform that is designed to enable the creation of scalable and interoperable applications. It has a strong development team and a wide range of partnerships and collaborations.

Polkadot is focused on scalability and interoperability. Many blockchain platforms have struggled to handle the volume of transactions that are required for large-scale adoption. As a result, there has been a push to develop new technologies and protocols that can improve the scalability and performance of Polkadot.

Conclusion:

It is important to note that these are just a few examples of coins that have the potential to reach new all-time highs in 2025 and there may be other coins that also have strong potential. The cryptocurrency market is highly dynamic making it difficult to predict exactly what the future will hold. As with any investment, it is important to do your research and carefully consider your investment decisions before investing in any cryptocurrency.

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NFTs VS Crypto: Which One is Better?

NFTs, Cryptocurrencies, Web 3.0, Bitcoin or even Ethereum, the crypto world might appear complex, confusing and outwardly weird to someone who has never personally engaged with these things before.

The introduction of Blockchain and the technologies it enables represents a paradigm shift on par with the introduction of the internet itself. People’s reactions to Blockchain-based technologies today are similar to how they responded to the early days of the internet, which included skepticism, enthusiasm and downright terror.

The two most significant unknowns in technology manifest as Cryptocurrencies and NFTs. Therefore, you must understand what they are and how they are entirely different from each other. 

What are Cryptocurrencies?

Cryptocurrencies are digital currencies. The name “crypto” refers to the fact that these currencies (also known as digital tokens) are secured via a technique known as cryptography, which means they are highly secure and impossible to double-spend or duplicate.

This security is achieved through various mechanisms (including public-private key pairs, encryption algorithms and more), each of which has controversy. Still, for this explainer, it’s enough to know that cryptocurrencies are essentially a digital form of money — which is why digital tokens are frequently referred to as “X-coin.”

Ethereum (ETH) and Bitcoin (BTC) are the most well-known cryptocurrencies, each operating within their Blockchain system, although hundreds of other cryptocurrencies exist across dozens of Blockchain platforms.

What’s an NFT?

NFT stands for non-fungible token. They are digital tokens, similar to cryptocurrencies but unlike fungible. They are cryptographic assets that live on the Blockchain.

The most common comparison here is between physical money and distinct physical items people buy because they are unique. We talked about how cryptocurrencies are fungible, which means that the same amount of ETH in your digital wallet and ETH in someone else’s wallet has the same value and function.

Consider a tangible thing that is unique to you and exists just once. This could be a portrait you bought, a collectible like a playing card or a stamp or a signed copy of the first edition of a book you love.

These things can’t be changed. If someone asked you to trade your signed copy of the first edition of a book for a signed copy of the fifth edition, we hope you would say no. Even though they both have the exact words, they are not identical and can’t be changed.

What’s the Major Difference?

The most significant difference is that cryptocurrencies can be exchanged with each other, while NFTs are all different and have different values.

How crypto coins are put into circulation is another difference. NFTs are made, while coins are “mined”. It’s a complicated process, but in a nutshell, a miner is a computer that does accounting work on the Blockchain and gets paid in new coins.

To “mine” an NFT, you must turn a file into a token that can be used on a Blockchain. The Blockchain checks the transaction and adds a fee to it.

Which One is Really Better?

Both have various uses and can’t be compared with each other. NFTs and Cryptocurrencies are built on Blockchain and employ the same technology and ideas. They thus frequently attract others of similar backgrounds. However, they are entirely unlike in terms of their identities and ways of working.

– Trading

NFTs: 

Since NFTs are bought and exchanged online and kept in a digital ledger, they cannot be traded. Instead of purchasing a tangible image to place on the wall, the buyer receives an original digital file.

Cryptocurrency: 

Cryptocurrencies may be traded or swapped without losing any value. Based on Blockchain technology, their peer-to-peer system allows anybody to make and receive payments in any digital cash or cryptocurrency.

– Uses

NFTs: 

Each non-fungible token shows that a digital asset is unique and can’t be traded with anything else. Due to the cryptographic principles of the Blockchain, an NFT can never be modified, edited, or stolen.

Cryptocurrency:

Like traditional currencies, it is a means of exchanging digital information while avoiding existing currency difficulties. It enables speedy, safe & decentralized transactions and the purchase & payment of products & services.

– Volatility 

NFTs: 

NFTs are claimed to be less volatile than cryptocurrencies. The creative, aesthetic side of NFTs has drawn both artists and traders. However, it may prevent people who find the work of creating NFTs too challenging, complex or cumbersome.

Cryptocurrency: 

As crypto opponents and authorities have often indicated in their criticism of cryptocurrencies, in particular, are viewed as high-risk investments. Specific cryptocurrencies, such as Bitcoin, have been designed to be more stable than others.

The Final Verdict? 

NFTs are now a good choice for artistic people who want to make money from their digital work. Because of the market’s creative, artistic component, artists and traders have been drawn to it. Cryptocurrency, on the other hand, is a bit surprising. It is used for trading, on the other hand some cryptocurrencies were intentionally built to be more stable than others. Stablecoins are cryptocurrencies with lower volatility than others, such as Bitcoin and Ethereum.

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