Bitcoin, Ethereum and dogecoin faced a crash on August 12th 2021. Everyone is aware of Cryptocurrency and how much value it holds in the market. It has become popular, especially among millennials and Genz.
CEO of Tesla Motors Elon Musk took the crypto market by storm by tweeting about different coins on his official Twitter account.
The introduction of dogecoin, a famous ‘Doge’ internet meme, created curiosity among the new generation.
What is Cryptocurrency?
A cryptocurrency is a digital form of currency secured by cryptography.
It is a decentralized economy which in simple words means that there is no higher, central authority around which it will work. Individuals are free to make transactions on their own.
The transactions taken between individuals are publicly available. Some popular cryptocurrencies are Bitcoin, Ethereum, Dogecoin etc.
Birth of Cryptocurrency
Satoshi Nakamoto first created Cryptocurrency in the year 2009, and it was named Bitcoin, which is the most valuable Cryptocurrency as of today.
Satoshi Nakamoto’s idea was to create a decentralized economy that could replace paper money.
The currency holders are given the sole power and responsibility to carry out transactions.
Soon after the introduction of bitcoin, various altcoins started to emerge with the same idea of ‘decentralization’.
Some of the popular altcoins are Ethereum, Uniswap, Chainlink, Aave. Out of these, Ethereum holds the highest value of Rs 3,242 as of August 13th.
The Recent Fall in Crypto
For the past few days, the crypto market has seen a surge in the prices of Bitcoin by 2%, Ethereum by 4% and dogecoin by 8%. Other coins, like XRP, Litecoin and Stellar dipped down more than 4 to 6%.
A report by Bloomberg that Cryptocurrency has again reached a value of $2 trillion, which was last seen in May. The US tax reporting requirements may create further potential obstacles.
The Crypto industry failed to adjust to the tax reporting rules. It was projected that it would generate revenue of about $28 billion.
The bulls in the market predict $100,000 of Bitcoin flying around after its recent comeback.
Environmental worries in China have recently weighed down the crypto sector. China’s restriction on mining Cryptocurrency has been going on and off since 2018.
It is the leading country in mining Bitcoin, controlling more than 60% of the Bitcoin network’s collective hash rate.
It also manufactures the world’s most mining equipment. As electricity prices are low, massive mining farming is located in the country.
Meanwhile, in the second week of August, the biggest hack in the history of Cryptocurrency took place. The hackers stole an excruciating amount of $610 million worth of Bitcoin, Ethereum, Binance innovative chain and USDC from Ply Network.
The hackers have now refunded half of the stolen funds. This has created a significant security risk in the crypto market which will need immediate attention.