The cryptocurrencies began to fall sharply at the turn of last week and this week, due to a single tweet by Elon Musk. People were afraid that his carmaker Tesla had started getting rid of bitcoins.
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Although Musk put things right after just a few hours, stressing that the world’s most famous electric car manufacturer only suspended bitcoin payments, but did not get rid of any virtual coins, it did not start growing again.
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illustrative photo
Photo: Dado Ruvic, Reuters
On Tuesday, China decided to reduce cryptocurrency transactions, which accelerated the decline of bitcoin and other cryptocurrencies, Reuters reported. Newly, financial institutions and payment companies are not allowed to provide any cryptocurrency services in the world’s most populous country.
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At the same time, China is the country where cryptocurrencies are most often mined. Currently, the country accounts for more than 75 percent of bitcoin mining on a global scale.
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Some cryptocurrencies fell by more than 20%
Courses responded to the restrictions almost immediately. Bitcoin thus fell below the 40,000 mark for the first time since February this year, specifically on Wednesday morning, one virtual coin was traded for $ 38,585 (CZK 800,830).
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At the same time, the exchange rate was still $ 43,602 (CZK 904,960) on Tuesday, and even $ 64,829 in mid-April, which corresponds to CZK 1,345,980.
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A significant decrease is also evident, for example, in the second most famous cryptocurrency, ethereum was traded on Wednesday morning for $ 2,857 (CZK 59,320). Last week, ethereum set a new record at $ 4382 (CZK 90,980).
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On Wednesday, however, the price of other cryptocurrencies also fell – virtually all those offered on the Coindesk stock exchange lost value. For some, the decline is higher than 20%, however, the vast majority have written off 10%.
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However, it should be emphasized that virtual currencies do not have a single price, they are traded on stock exchanges and exchange offices depending on volatility. Differences in prices can vary in the order of several thousand crowns.
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Cryptocurrency rates at the Coindesk Stock Exchange (May 19, 2021)
Photo: repro coindesk.com
Bitcoins and other virtual currencies
There are many virtual currencies. One of the oldest and currently the most popular are the so-called bitcoins. They were created in 2009, but have enjoyed greater popularity in recent years. This currency was designed so that it could not be influenced by any government or central bank.
Cyber coins are “minting” a network of computers with specialized software programmed to release new coins at a steady but declining pace. The number of coins in circulation is expected to reach 21 million in the end, which is to be around 2140.
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