Bitcoin is a volatile currency that means the price of bitcoin fluctuates every second, and it is not inevitable. Many factors affect the bitcoin price, such as social media, trending positive and negative news, tweets, etc. Demand influences the price of bitcoin because there are more than a million people, and the cost depends upon their buying and selling decisions. Supply limits the network up to 21 million, and transactions are very high, and when the demand increases, the price also increases. At the time of writing this article, the need for bitcoin was very high in the market because at the starting year of 2021, the price of bitcoin was $29,000 something but the current value of bitcoin is $64,122 that is very high. The latest news on bitcoin impacted bitcoin a lot because the price of bitcoin was $67,585, which was the highest peak of bitcoin ever, but it decreased to $64,122. How the change occurred and what is the news that impacted the price given below: –
PM Modi announced some facts about bitcoin cryptocurrency:
PM Modi is the prime minister of India and disclosed some facts about the bitcoin cryptocurrency that influenced the decisions of bitcoin users in India given below: –
- Risky currency: – PM Modi said in the announcement that bitcoin is a dangerous currency and we should not buy bitcoin or other cryptocurrencies. Bitcoin is a decentralized currency that means no third parties can interfere with it, such as the government, banks and other financial institutions. Some bitcoin exchanges exist for the user’s privacy but are centralized platforms that means if there is any security bug, hackers can hack the exchange. As a result, they can steal all the bitcoins of users. Bitcoin exchanges are not safe because once you lose your bitcoins, you will not get them back. Many people were unaware of these facts because they were beginners and sold their bitcoins, which means a fall in the price. Click here if you want more detail – bitcoin investment
- Not regulated: – Modi said that bitcoin is not a regulated currency like fiat currency, which means it is a virtual currency. There is no guarantee of the future of bitcoin. If you have invested lakhs of rupees in bitcoin, there is no guarantee in future that you will get it back or not. Fiat currency is the regulated currency by the government, and if you face any problems with the fiat currency, you can contact the banks or support. For example, in fiat currency, you send money to your friend’s bank account, and by mistake, you transfer it to the wrong account number. Now you can contact the bank that you have moved to the wrong account number, and they will help you get your money back to your account since fiat currency is regulated. But if you transferred to the incorrect address in bitcoin, you cannot claim your bitcoin back because no third parties are working behind who will help you get your bitcoin back.
- Illegal activities: – Since bitcoin is a fully private currency, every transaction is anonymous on the network, and no one can see the personal details of the sender and receiver. Bitcoin blockchain will help you know the transaction id of the sender and receiver and the transaction amount, but it will not disclose the personal details of the sender and receiver. So it will give birth to the illegal activities for drugs and selling of illicit products.
Chances of falling price: –
There are a lot of bitcoin users in India who invested a lot of money in crypto coins, and after the announcement, they are terrified about their investment. The information is the latest, and there may be strict action on cryptocurrency. Modi said that we should plan about it and make the final decision about it. There are chances that there will be severe restrictions on crypto coins, and bitcoin users in India will sell their bitcoins. There was previous news about the bitcoin ban that became viral in India, and a lot of bitcoin users had sold their bitcoins, and the price of bitcoin fell very much. So, there are some chances that the price may decrease of the bitcoin cryptocurrency.
