Are you wondering why Bitcoin's value is crashing? The reason behind the crash will surprise you. Cheap gas and an economic boom are two reasons to look forward to the next Bitcoin price plummet.
What is Bitcoin?
Bitcoin is a digital currency that has been gaining traction over the past few years. It was created in 2009 by an unknown person or group of people using the alias Satoshi Nakamoto. The currency has no physical form and can be transferred from one person to another without going through a bank or any other financial institution. It is also possible to buy goods and services with bitcoins, but this requires that you have an account with one of the many online retailers that accept them as payment.
As of September 2017, there were 16 million Bitcoins in circulation, with a total value of $100 billion dollars. This makes it one of the most valuable currencies in existence today, though some experts believe that this could change in the future if more people start using it for transactions instead of just buying and holding onto their bitcoins as an investment vehicle.
The price of Bitcoins has been steadily rising over time due to increased demand from investors who see this cryptocurrency as an opportunity to make money on long-term investments rather than just buying something like gold or silver bullion bars at your local coin shop. However, there have been several recent incidents where these investments have crashed dramatically due to hacking attempts or other unforeseen circumstances.
read more: Bitcoin Price Drop: Why the Price of BTC Fell Off a Cliff This Week
Why Has The Bitcoin Crash Happened?
The Bitcoin crash is coming, and it's not clear what will happen next.
Bitcoin has had a rough week. The cryptocurrency plummeted to its lowest value since December last Friday, falling over $1,000 dollars in one day and dropping more than 80% from its all-time high last year.
The crash has been blamed on a number of things: investors pulling out of the market after losing money; high transaction fees; and China's recent ban on cryptocurrency exchanges. But it's still unclear why these factors combined to create such a dramatic drop.
One possibility is that some investors are just tired of waiting for the currency to rebound—and they're taking their money elsewhere. Another is that there may have been some kind of manipulation at play—a theory bolstered by reports that someone was able to buy $100 million dollars worth of bitcoin using Tether, a cryptocurrency that claims to be backed by U.S. dollars at a 1-to-1 ratio (but hasn't yet provided any proof). Whatever the cause, experts say we could see another bitcoin crash in 2022 or 2023 when miners start mining Bitcoin Cash instead of Bitcoin Core (the current version).
What Is A Bitcoin Crash?
A Bitcoin crash is a rapid drop in the price of the digital currency. Bitcoin is a digital asset that can be traded like any other currency or commodity. It's not backed by any government or central bank and its value fluctuates according to supply and demand.
Bitcoin has experienced several crashes since it was created in 2009, with each one varying in severity. The most recent crash occurred on November 26th 2018 when the price of 1 BTC dropped from around $4200 to $3700 in just 20 minutes before stabilizing around $3800. At its lowest point during this particular crash, 1 BTC was worth less than $3200 USD.
What Causes A Bitcoin Crash?
In a nutshell, Bitcoin crashes when its value goes down.
But what causes a Bitcoin crash?
Bitcoin is a cryptocurrency that is not controlled by any single entity. The price of Bitcoin has been fluctuating for quite some time now. In fact, it was around $20,000 in 2017 but it dropped to about $6,000 in 2018. This made many people lose faith in the coin and they stopped investing in it.
The main reason why this happened was that there were several hacks that took place during this time period which caused many investors to lose their money and confidence in the coin as well.
How Long Does It Last?
We're not sure exactly how long it'll last, but we can tell you that the bitcoin crash is coming.
There's been a lot of talk about the bitcoin crash and whether or not it's something we should be worried about. So let's start with the basics: what is a bitcoin?
A bitcoin is a digital asset built on blockchain technology. It allows people to store and transfer value without a third party like a bank or government. The first wave of these digital assets were released in 2009 by Satoshi Nakamoto, an anonymous developer who created the first application in 2009 and released it as open source software in 2010.
The price of bitcoins has been rising steadily since then, hitting an all-time high of $19,343 per coin in December 2017 before falling back down to around $4,000 per coin today (March 2019).
So what does all this mean for you? In short—it means that if you're holding onto any bitcoins right now (or thinking about buying some), there's a good chance you'll lose money when the bitcoin crash comes.
What Happens To Your BTC In A Crash?
Let me start off by saying that there are no guarantees in life. We can't predict the future, and we don't know what will happen to Bitcoin in 2022.
But if you've been wondering about the possibility of a Bitcoin crash, you're not alone. In fact, this question comes up so often that we decided to write a blog post about it!
So let's get into it. What happens when there's a Bitcoin crash? How do you survive? And most importantly: how do you protect your investments?
When a Bitcoin crash happens, the value of your coins will drop significantly—sometimes as much as 50% or more! But don't worry: these crashes are temporary and very rare. They happen because of fluctuations in supply and demand (which means that people want less BTC than before). The good news is that these crashes don't last forever; eventually demand will increase again and prices will go back up!
Are There Signs Of Another Bitcoin Crash?
After hitting a high of $20,000 in December 2017, the price of bitcoin has fallen by more than half and is now hovering around the $7,000 mark.
The digital currency's value has been on a downward trend since its peak but this latest crash is significant. It comes just months after a similar sharp fall in February and may point to some deeper issues within the cryptocurrency market.
The sudden drop has led some experts to suggest that another bitcoin crash could be on the horizon – with one predicting it will reach as low as $1,000 by 2022. Here's what we know about what's causing bitcoin prices to fall and whether or not there are any signs of another crash brewing.
How You Can Prepare For The Bitcoin Crash 2022
If you're wondering what the heck is going on with bitcoin, and whether or not you should be worried about a crash in 2022, now's the time to start taking action.
You've probably heard of bitcoin—the digital currency that has been skyrocketing in value over the last few months. It's easy to get caught up in the hype, but if you don't understand how it works and how volatile it can be, then you're risking losing all of your hard-earned money.
For example: If you'd invested $100 in bitcoin back in 2010, it would have been worth over $1 million by 2018! But then things started to change…
As cryptocurrencies become more popular, there are more people buying them up and making trades on exchanges like Coinbase and Gemini. This increases demand for these currencies which raises their price even higher—but just as quickly as they go up, they can fall too. That's why we recommend taking action now before another crash happens (which is likely coming soon).
2022 might be another crash. Crypto will rise and fall, but can you ride the wave of success that is also certain to come your way?
So you're a crypto investor. You've been watching the market closely and have seen what happens when Bitcoin crashes. You've also seen just how quickly it can recover.
But here's the thing: if you're hoping to ride the wave of success that is also certain to come your way, you need to be ready for another crash. The question is—are you ready for it?
Even if you're not in this for the long haul, maybe you want to make sure that whatever money you put into Bitcoin stays safe and secure until it's time for a sell-off. Maybe you want to get out of the game before things go south again. Regardless of why you are interested in learning more about what causes Bitcoin crashes and how they happen, there are some things that everyone should know about these events so they can prepare accordingly.
The reason that the crash is expected to happen in 2022 was due to the fact that the block reward halving will occur in 2022. The block reward halving occurs if every 210,000 blocks are mined. In July 2016, the block rewards were cut in half from 25 bitcoins per block to 12.5 bitcoins per block. This reduction of 12.5 bitcoins will be another halving of the rewards when it happens – which happens once every four years. If you're interested in buying bitcoin now, wait until 2022 and you'll see much bigger gains than what you would if you bought it now!