Bitcoin continues to decline reaching $ 47,000
Bitcoin continues to decline reaching $ 47,000

Influenced by the comments of US Treasury Secretary (Janet Yellen) and Tesla CEO (Elon Musk) Elon Musk, Bitcoin continued to decline today.

According to Coin Metrics, the world's most valuable digital currency is down 14% in 24 hours and it's down below $ 50,000 on a transaction price of around $ 47,000.

The currency earlier fell 16%, hitting its daily low of $ 45,000.

Other digital currencies also fell, with Ethereum down 17% to $ 1,458, while XRP down 22% to around 44 cents.

On Monday, Yilin described Bitcoin as a very ineffective trading method and warned against using it for illegal activities.

The warnings also caused Bitcoin to have an environmental impact. The rise of digital currencies has sparked criticism from some critics for the huge amounts of electricity required to generate new currencies.

Bitcoin is not controlled by any central authority, and miners use high-performance machines to compete with each other and solve complex mathematical problems in transactions.

Online tools from Cambridge University researchers show that the Bitcoin network uses more electricity than Pakistan.

Yellen also warned of the risks of private investors buying Bitcoin.

The former Fed Chairman said, "This is a highly speculative asset and people should be aware that it can be very volatile." I am concerned about the potential losses that investors may incur.

In the past 12 months, Bitcoin has risen again by more than 360% and nearly 60% since the start of the year, and price fluctuations in excess of 10% are not uncommon in the crypto market. Coins.

The price of Bitcoin rose to nearly $ 20,000 early in 2017 and decreased 80% in the second year.

Last week, the market value of cryptocurrencies reached $ 1 trillion for the first time, although it has since fallen below $ 900 billion.

The cryptocurrency got a boost thanks to news from the Wall Street Bank and major companies like Tesla and Mastercard.

Musk said last weekend that Bitcoin and Ethereum prices appear to be high, and his comments come after Tesla announced earlier this month that it had bought Bitcoin for $ 1.5 billion.

Cryptocurrency futures traders borrowed a large amount of money to buy bitcoin contracts, which increased lending rates, and on Saturday, February 20, they paid 144% of the annual fee.

Obviously, this situation cannot continue: in this case, it is necessary to lower rates in order to get rid of over-optimistic borrowers and return lending rates to normal levels.

Bitcoin has gained momentum among ordinary investors, in part because people believe Bitcoin has a value comparable to gold.

More and more investors are claiming that the cryptocurrency can be used as a hedge against inflation.

Skeptics warn, however, that Bitcoin has no intrinsic value and is one of the biggest market bubbles in history.

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