In April, the value of Bitcoin was all-time high has the market price reach $63,000. But now, Bitcoin market value is now seeing a trend of diminishing value, causing the dark summer for cryptocurrencies.
Bitcoin, not only have the top crypto by market capitalization but reduce to almost half of its value.
Between June 2021 and June 30, Bitcoin value decreased by 40.3% (that is from $138 billions to $80 billions).
What does this means?
Bitcoin had fall in market value in the recent month. The fall has cause dark summer experience for its trader.
In fact, initial coin offering (ICO) platform, Coinist, confirmed that the market price is not likely to rise soon.
The CEO of Tesla, Elon Musk say in a tweet that his company was suspending Bitcoin as a means of payment for Tesla car.
What causes the down fall of Bitcoin?
In April, 2021, China, which was the home to 65% of world’s cryptos mining activities started testing its Digital Yuan, Chinese Central Bank Digital Currency (CBCD).
So, the decrease started in China due to the world’s mining power house that was on hold, the price of Bitcoin plummeted.
However, The Hindu explained that the down fall is to strengthen and encourage the Chinese New Digital Currency (Yuan).
The crackdown also caused the Central Bank of Nigeria (CBN) to imposed a circular restriction to trading of cryptocurrencies and its activities in Nigeria.
CBN proclaimed that it will seize the license of operation from any financial institutions that facilitate crypto-related transactions within and outside the country.
Providus bank which was the leading crypto trading bank in Nigeria staggered when the law was passed.
The Central Bank Of Nigeria(CBN) also announced its plan to issue digital currency for Nigerians.
Its been five month now, inspire the CBN ban, Nigeria has seen as the leading peer-to-peer crypto-trading.
Nigeria and China are not the only country planing Digital Currency. In April 19 2021, BBC news reveal that England has set a task force to look into Central Bank Digital Currency in the country.
The United State of America (USA) is also planing the CBDC.
Morocco, Senegal and SouthAfrica also embarked in the central bank digital currency (cbdc).
EU has been taking all necessary steps to make crypto-trading traceable.
What happen to normal cryptocurrencies?
Hmm, Cryptocurrency is vanishing. Has most country embarked in producing digital currency of their money, motivate the rest of the world to created related currency.
This may likely cause Bitcoin and other Cryptos to erase from existence.
As we all know, Chine hold 65% of crypto mining worldwide, if it lose interest in mining more Cryptos and focus on it digital currency, the price of Bitcoin will continue to fall till it vanish.
Different between Digital Currency (DC) and Central bank digital currency (CBDC)
CBDC will implement more technology to monitor the transaction of the Currency in blockchain and crypto space.
CBDC is created on a private block chain ledger which is govern by the government.
Cross border transaction and control volatility will be difficult to maintain due to its private blockchain ledger which is been control by the government.
No traces in regular cryptocurrencies but central hub will be there to monitor CBDC transaction of individual.
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