Bitcoin is witnessing huge volatility these days. There has been a lot of volatility especially since yesterday. Bitcoin dropped below its psychological level of $35000 yesterday. After which questions began to arise about the future of bitcoin. However, today once again recovery has been seen in this.
We will try to understand why this volatility is happening in bitcoin. Also what is the future of bitcoin? There is growing uneasiness around the world over cryptocurrencies like bitcoin. At the same time, the eyes of the world are also on the steps of the Central Bank. Different central banks of the world are taking different steps regarding crypto currency like bitcoin. Which makes its future even more important.
Huge volatility is being seen in bitcoin
The most popular cryptocurrency in the world is bitcoin. All cryptocurrencies have seen volatility yesterday. Including cryptocurrencies like ethereum bitcoin dogcoin. At present, there are thousands of cryptocurrencies operating in the world. It is not controlled by any government or regulator.
Yesterday bitcoin broke its $35000 level and reached $34845. After this, questions began to arise about the future of bitcoin. However, today once again recovery has been seen in this. It has moved above its $35000 level. At the moment bitcoin is seeing an increase of 0.51%.
Why is there a huge volatility in bitcoin?
By the way, any cryptocurrency like bitcoin is known for huge fluctuations. But experts also give other reasons behind this recent change.
Cryptocurrencies are mainly based on demand and supply. If the demand for cryptocurrency is high and the supply is low, there is a huge increase in it. Whereas cryptocurrencies see a decline when demand is low. With this experts are saying that cryptocurrency is not safe. Because if a person has a large number of cryptocurrencies, then he can control its fluctuations.
Yesterday the Central Bank of Russia called for outlawing cryptocurrencies like bitcoin. Russia’s Central Bank says the government does not control cryptocurrencies. This increases the economic risk.
However, Russia’s Central Bank has denied banning it completely. The Central Bank says that those who currently have cryptocurrency. No restrictions will be imposed on those people. The cryptocurrency saw a huge drop after this news came out. Including bitcoin.
For information, let us tell you that Russia is currently at number three in the world in terms of cryptocurrency. Most cryptocurrencies are mined in countries like the United States and Canada.
What is the situation in the world regarding Cryptocurrency
Central banks around the world are increasingly worried about cryptocurrencies. Most of the central banks are in favor of banning cryptocurrencies.
The Prime Minister of India, Narendra Modi recently said that if cryptocurrency goes into the wrong hands, the future of our children can be ruined. Even before this, the Government of India has taken a tough stand on cryptocurrency. Recently the Central Bank of Russia has also advocated a ban on cryptocurrencies. Apart from this, countries like China Bangladesh Nepal Cambodia have banned cryptocurrency. In the coming time, if more countries also ban cryptocurrency, then its prices may fall.
The biggest problem with cryptocurrency is that there is no control over it. Due to which there is always a risk of it falling into the wrong hands. Cryptocurrency is very popular among cybercriminals. Because he is able to commit crimes safely.