Why did btc explode (why has btc been falling)?

Why did btc explode? During the bitcoin halving period, why did btc explode? First, why did btc explode?

Bitcoin’s fork project Bitcoin Cash (BCH) officially launched on January 5, 2009, at block height 630,000. But over time, there were a large number of transactions in its network. When miners mined a new coin, there would be a surge in prices. For example, around 11 am this morning, many users bought 10 BTC, and then around 12 am, another group of users sold 100 BTC. By around 2:15 pm in the afternoon, the price of Bitcoin reached a new all-time high. At this time, the entire blockchain industry was in a slump.

However, with Bitcoin becoming more and more popular, some people began to worry that btcco.com would be hacked, causing the fund pool to collapse. So they decided to sell, turning their investments into a Ponzi scheme. Second, why does btCStaking bring security risks?

According to btcetoken data, there have been two incidents of flash loan theft: one is due to problems with the issuers of Bitcoin Cash and other cryptocurrencies, which fail to meet regulatory requirements and affect investors’ interests. The other is a hacker theft case that occurred on the BitMEX platform, causing a loss of about 3 billion US dollars. (Note: “Exchange Wallet” refers to the private key of the exchange address, which should not be shared with any other account or transferred externally).

Third, because Bitcoin Cash is an ERC20 token developed on the Ethereum blockchain, it is decentralized through Bitmex. However, these protocols are usually anonymous. If Bitcoin Cash is maliciously used or suffers a 51% attack, it will provide users with more protection measures.

Why has btc been falling?

Editor’s note: This article is from BlockBeats (ID: BlockBeats), authored by 0x2, and authorized for reprint by Odaily Star Daily.

Bitcoin Cash is one of the hot terms in the currency circle. After its official launch on December 17 last year, its market value has fallen to around 300 million US dollars, and the current price is around 6 US dollars. In the past day, btc suddenly plummeted by over 20%. According to CoinMarketCap’s statistics, it has been consistently declining since April this year.

So why has btc been consistently declining? Let’s interpret it from multiple perspectives:

1. The reason why btc has remained high for a long time is that its issuance mechanism is completely different from that of Bitcoin;

2. The value support and market dominance of btc have not changed significantly;

3. When people begin to question whether the core technology behind this project is outdated, what impact will it have?

If we say that Bitmain’s stock is like BitShares, it is because they have a strong technical foundation, and the innovation of these technologies can help them develop and become mainstream securities. But it seems that this is just a beginning, so many investors will not buy Bitcoin as a hedge against inflation because the price of Bitcoin is far lower than expected volatility. Therefore, many people think that btc is a scam, and some even think that btc cannot survive. But in fact, btc has not encountered such problems, but instead has caused increasing concerns within the entire community about the existence of this instability factor.

Another reason is that the blockchain industry is still in its very early stage. Although some companies are researching how to attract users using this field, they cannot meet their business needs in certain aspects. For example, according to a letter sent by Facebook to Libra, “I hope everyone can understand that this is a new development.”

In addition, according to bitcoinist, due to increased uncertainty from regulatory authorities, many Chinese teams have had to shut down their websites to avoid inspection, which has also led some domestic developers to temporarily stop supporting the project’s research and development.