Is Bitcoin a hype
Cryptocurrencies pound up depending on the buying pace of other people.

Bitcoin, being the most famous cryptocurrency, has marked popularity around the world. It has made many crazy and people are getting into the bitcoin buzz in droves.

Since its launch in 2009, the cryptocurrency world has made several advancements. In the process, it has changed society as people shift to these virtual currencies.

This paradigm shift was further elaborated during the Covid-19 pandemic times where people made the most use of digital assets. People wanted an alternative to their jobless lives and so some opted for several platforms to help them earn coins. The most comprehensive website proved to be a relief for many people during these times.

People invested and traded wholeheartedly because this was the only solution they could find while sitting in their homes. However, many transactions were also carried out, especially the cross-border transactions where people sitting in a different country can easily send to the other party across the border.

People not only invest but also stake coins – that is holding them for a period of time to earn profits. The tech-savvy ones mine using specialized skills to gain more coins. The rest is taken up by the evolution of airdrops. They have created more awareness by giving people free coins for simple tasks.

In every nook and corner of this world, cryptocurrencies have achieved various goals. It has made many millionaires within nights. Even the poor have become rich through these virtual currencies.

The False side

Everything has got a dark side and so has bitcoin become. Recently, a report stated that about 95% of bitcoin trading has been fake due to the presence of unregulated exchanges. The cryptocurrency markets are now being manipulated and this is creating a mess.

Money laundering

Many people stepped back due to sudden volatility in the cryptocurrencies. These changes are not random; they have many causes behind them. Since 2018, the volume of money laundering has increased. The major reason behind such an increase in money laundering through bitcoins is their feasibility.

They are easily exchanged without any bank formalities. Moreover, the transactions are online, which makes them more vulnerable. There is a potential gap between the law enforcement and the main point is the transnational nature of the cryptocurrency that makes them the target for money laundering.

Hackers are now behind bitcoin and trying tactics to perform illegal activities with it. It is estimated that about 90% of remote hacking is focused on bitcoin theft by commandeering other people’s computers to mine coins.

Wash Trading

Analysis shows that many of the exchanges are wash-trading. This is a term used to describe the situation where the same person simultaneously sells and buys the same stock or bitcoin to create a sense of activity.

No Value

According to the greater fool theory, bitcoin has no intrinsic value on its own. The value it has is based on what other people will buy. That is the basic reason for the high price fluctuations. Cryptocurrencies pound up depending on the buying pace of other people.

What to do?

Cryptocurrencies may seem a mess to you at this moment, but if you delve deeper you will come to know that it is the only solution to your problems. Bitcoin was the famous asset that was transacted during the whole of the Covid-19 pandemic. There was no other option for people to earn as many of them lost their jobs.

So, the main thing is you being vigilant and hitting the right ball at the right time. This would help you to earn profits. Stepping back away from the crypto world is not a solution. Therefore, look into it and start by taking small steps.

See Also >> The Rise of Cryptocurrency ATM Machines


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