Bitcoin has fallen in price twice since December. Reasons

Биткоин подешевел в два раза с декабря. Причины

Why falling bitcoin exchange rate

The rate of bitcoin has fallen 50 percent from a high of 20 thousand dollars, which was reached in mid-December. Understand what caused the fall of the cryptocurrency in January.

Bitcoin in mid-December was worth a record 20 thousand dollars for the token. Since then, its value started to fall and the course is now the most popular crypto currencies barely exceeds 10 thousand dollars. So for the last month bitcoin has lost 50 percent.

Together with the exchange rate falls and the share capitalization of bitcoin at the cryptocurrency market. A month ago, he was an absolute monopolist – its market capitalization sostavlyala 335 billion dollars in total capitalization of the stock market of 570 billion.

Along with a cheaper bitcoin and other cryptocurrencies. Samimi resistant were Ethereum, Ripple and Tether – they rose in price, while others fell cryptocurrency after bitcoin. Now capitalise the entire stock market is approximately 560 billion dollars.

Meanwhile, miners have extracted 80 percent of bitcoins – 16.8 million. Will have to get that 4.2 million and a cap of 21 million bitcoins, provided by the Creator of the cryptocurrency Satoshi Nakamoto, will be achieved.

Корреспондент.net decided to find out what has caused the fall of bitcoin and other cryptocurrencies.


China has banned bitcoins?

In the beginning of 2018, the Internet appeared a copy of the document in which the Central Bank of China directly speaks about the need in the country to stop mining bitcoins. Reasons are called “consumption of huge amount of electricity and fuelling speculation of virtual currencies”.

In China is almost 80 percent of mining capacity in the world. Chinese regulator may limit the supply of electricity to miners of bitcoins, which seriously affects the cryptocurrency market.

The Wall Street Journal found that the regional authorities have already started to implement regulations.

Recall that the miners create bitcoins by solving complex mathematical problems, they need a powerful computer hardware. In China they are in sparsely populated border regions with cool climate.

Биткоин подешевел в два раза с декабря. Причины

Farm for bitcoin mining in China / EPA

Experts believe that the simultaneous shutdown located in China capacity unlikely, including the fact that China is tightening the screws in the sphere of turnover of bitcoins for months, and many miners are already able to carry out equipment.

In addition, recently it became known that in China under the ban can get local and foreign trading platforms.

After China officially banned the crypto currency exchange, Chinese citizens have not abandoned cryptocurrency and bought it having to travel to neighboring countries, where access to the exchanges. Then returned home and traded among themselves through special applications and platforms.


South Korea prohibits anonymity

The South Korean authorities decided to ban crypto currencies, but financial regulators will penalize the investors who trade cryptocurrency on condition of anonymity.

Traders conducting transactions with virtual accounts, took a month to switch from anonymous accounts on the name. Those who refuse to comply with the new rules face fines or even imprisonment.

However, the probability of closing all cryptoamnesia remains, said recently the Minister of Finance of South Korea’s Kim Dong-Yon.

Note that one of the largest private bilinovich exchangers appeared in South Korea, as the country is booming cryptocurrency.

Биткоин подешевел в два раза с декабря. Причины

Otmenny bitcoin / Getty

The volume of transactions in South Korea takes up to 25 percent of the global market for virtual currencies and bitcoin, the most popular kind of “encrypted” money, possess more than two million people.

Thus, the Korean authorities do not recognize bitcoins as a fully-fledged financial product, and the activities of cryptoamnesia not regulated.

To prevent attempts of money laundering, tax evasion and speculation on courses, regulators have banned banks to open new virtual accounts, which are necessary for the purchase and sale of cryptocurrencies and holders of anonymous accounts were ordered to convert them into registered.


USA taxed exchange cryptocurrency

The operations of exchange of cryptocurrency in the USA will be taxed. The relevant law in late December was signed by us President Donald trump.

The new rules entered into force on 1 January 2018. Analysts say that this law has become one of the most significant changes in the legislation of America over the past few decades.

Биткоин подешевел в два раза с декабря. Причины

Bitcoins in the U.S. / Getty

After the signing of this normative legal act, many us investors lost the opportunity to use a loophole in the tax laws, because until today all cryptocurrency transactions was equal to the “exchange of similar assets”, which allowed investors to save substantial amounts of money.

This workaround even had its own name traders – rules “1031 exchange”. With its help it was possible to exchange any property without the payment of tax.


Investors ‘ disappointment

Also one of the reasons for the fall in the value of cryptocurrency has been the disappointment of small investors who bought bitcoins from mid-November through December, when its rate has tripled, the expectation that bitcoin will continue to grow.

Experts say that those who bought bitcoins in late December and early January, expected growth, was not aware that you have to wait not less than six months. However, the patience of small investors has burst, experts say.

Note that on January 16 the head of the European Directorate for the supervision of the securities market Steven major told Bloomberg that investors should be prepared to lose all the money invested in bitcoins.

In his opinion, the extreme volatility of bitcoin makes its use as a currency is meaningless.

One of the largest investment banks in the world Goldman Sachs said bitcoin and others cryptocurrencies in the long term will have low or zero yield and used as an asset for capital accumulation is like gold.

More news about bitcoin and the stock market, read the updated story Корреспондент.net bitcoins: latest news.