Bitcoin went from trading $ 30,000 to $ 68,000 and, following the common answer, it has to do with the market that understood its true value. So it was.
Financial institutions have struggled to appear more crypto-friendly in the past year. For example, MasterCard and Visa are among the companies that have experimented with digital currencies.
While in the political space, the president of El Salvador, Nayib Bukele, turned bitcoin into legal tender. A decision that cryptocurrency advocates praised. For his part, the new mayor of New York, Eric Adams, announced that he wanted his first payment in bitcoin.
But critics say this doesn’t necessarily translate into a healthy industry. “The bitcoin markets are heavily manipulated”, Gerard assured and added: “The scam is who can get out when the bubble collapses. There are many reasons to be suspicious.”.
PAG21-CRIPTOMONEDAS_opt.jpeg
There are many mechanisms that skeptics point to to allege market manipulation. Take the case of the “whales”, which usually own more than 5% of a given currency and have the ability to dictate the market price in general, retaining their reserves, keeping them out of circulation and driving the price up. Or, if you want to increase your reserves, they can sell enough first to drive the price down.
Bitcoin’s connections to other cryptocurrencies have also raised concerns about its price. A 2019 document suggested a link between the price of bitcoin and the stablecoin tether, which has had to reach an agreement with the New York attorney general and the United States Commodity Futures Trading Commission, on the reserves that support its supposedly stable value.
“Overall, our results support the view that price manipulation can have substantial distorting effects on cryptocurrencies.”wrote the teachers John Griffin, from the University of Texas at Austin, and Amin Shams, from Ohio State University. Tether argued that the document was “flawed” while the company, which claims to have $ 72 billion in currency in circulation, has yet to give details on the short-term dollar debt that backs half that amount.
bitcoin-cryptocurrencies
Telam
In addition to this universe, there are dogecoin, which started as a joke before its price skyrocketed on the backing of Tesla boss Elon Musk. But since many consider it popular, they have decided to use other digital currencies such as baby doge and you block.
The way you are altcoins – a broad term for all non-bitcoin cryptocurrencies – rising and falling in value can be just as opaque, in a space rife with schemes of ‘pump and dump’ (to raise the price of the crypto and then sell when others try to seize the moment), such as the squid currency (Squid).
The coin that is named after the hit Netflix series, but not related to it, saw its price rise on speculation as media coverage lured over-confident bettors. In the end, developers grabbed $ 3.6 million from people who thought they were riding the next big wave.
Bitcoin.jpg
Cryptocurrencies looking for a dose of Fomo (fear of missing something) may turn to celebrities to endorse their products. Personalities such as actor Matt Damon, American football player Tom Brady or reality star Kim Kardashian have appeared in ads to promote cryptocurrencies or related companies.
For many investors, the possibility of “the number going up” is enough to entice them to put money in cryptocurrencies. But the concern lies in the opacity of the sector. And, coupled with an incessant boasting about the transformative quality of cryptocurrencies, it helps explain the rise in prices. But offers little security to buyersNot to mention regulators and governments who are still trying to understand the future of digital money.
Source From: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
