Bitcoin is the most popular cryptocurrency in the world. This year bitcoin has made a tremendous amount of money to its investors. But over the past several months, the price of bitcoin has been steadily declining. The reason for this is the questions raised by the governments of many countries on the control of cryptocurrency and its mining.
Bitcoin has delivered tremendous returns to its investors in the first four months since the start of this year. On January 1, 2021, the price of bitcoin was $29,001 per unit. It reached its all-time high of $64,863 per unit on April 14, 2021. That is, it gave a return of 123% to its investors during 1 January to 14 April 2021. In April, US car maker Tesla invested more than $1 billion in bitcoin. This instilled confidence among other investors and increased demand for bitcoin. Because of this, the price of bitcoin reached its high level.
Continuing Fall Since April: The bitcoin price has been steadily declining since reaching its highs on April 14th. So far the price of bitcoin has fallen by more than 50%. At around 12.30 pm on Tuesday, the price of bitcoin was trading down by 6.22% at $29,831.70 per unit. Along with this, there has been a huge decrease in the market cap of bitcoin. In April, the market cap of bitcoin crossed the $1 trillion mark. Now it has come near 55 thousand crore dollars.
This is the reason for the decline: Governments do not currently control cryptocurrencies. Only a few countries have recognized it. The trend of investing in cryptocurrencies is increasing all over the world. For this reason, in recent times, governments around the world are busy making rules regarding cryptocurrencies. In many countries including India, there is a debate about banning cryptocurrencies. This is having a negative impact on investors. Fearing a ban, investors are busy withdrawing investments in cryptocurrencies. Because of this it is declining. Tesla CEO Elon Musk has repeatedly questioned the energy used in mining bitcoin. This is also having a negative effect. The volatility in the stock markets around the world, including the US Dow Jones, also has an impact on cryptocurrencies.
The condition of other cryptocurrencies: It is not that only Bitcoin is facing the downside. Most of the cryptocurrencies, including other cryptocurrencies such as Ethereum, Ethereum Classic, Binaca Coin, Dogecoin, are declining in price. On Tuesday, Ethereum was down 7.86% to $1,762 per unit, Tether was down 0.02% to $1 per unit, Binance Coin was down 12.03% to $266 per unit, Dogecoin was down 7.58% to $0.1662 per unit. Ethereum Classic is trading 7.18% down at $39.06 per unit.
Here’s how you can invest in cryptocurrencies: You can invest in it through the website of any cryptocurrency exchange. First you have to register on the exchange. After that you can buy cryptocurrency by paying in any way. All exchanges charge commission from their clients. Therefore, check the exchange commission thoroughly before investing in cryptocurrencies. Before investing in cryptocurrencies, check the rules and regulations of your country thoroughly.
What is cryptocurrency?: Cryptocurrency is a type of virtual currency. It is also called digital currency. Transactions can also be done through this. There are currently around 4,000 cryptocurrencies in the world. Bitcoin is the most popular cryptocurrency in the world. The trend of cryptocurrencies is also growing rapidly in India. The number of cryptocurrency investors in India has crossed 10 million. Their total investment is more than Rs 15,000 crore.