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Crypto-Market Rallies End, Crypto-Coin Prices Falls

The cryptocurrency market felt a huge shock in the coin market after Bitcoin and other top cryptocurrencies dipped on Tuesday’s trading.

The king of cryptocurrencies, Bitcoin, has fallen from last week’s high of nearly $14,000 to below $10,000 today. The price decline has broken through the $12,000 and $13,000 resistance level.

After going down to approximately 30%, the dynamic movement of the currency continues after the cryptocurrency market was shocked by Facebook’s plan to create Libra.

Other major cryptocurrencies have also taken a dip. The top three in the crypto market under Bitcoin –Ethereum, Ripple’s XRP and Litecoin also lost 5% to 15% each.

In the recent months, Bitcoin and other crypto coins have surged over 200% after some of the world’s biggest tech companies expressed their interest in the cryptocurrency world. Those companies include Apple and the social media giant, Facebook.

A senior analyst said that the heavy pullback is a big splash of ice-cold water to the crypto market that is currently getting too hot. Adding that the sudden nonstop surges in prices had some traders feeling uneasy.

Bitcoin has already gone under wild rides in the past. In 2017, coin prices bounced from under $1,000 to a whopping $20,000 in just less than 12 months. After a hot run in 2017, the crypto coin fell hard the next year, hitting levels around $3,000.

A critic of the cryptocurrency has said that it is not impossible for the coin to fall to zero. Stating that due to the coin’s ‘toxic externalities’, it will eventually get to zero in due time.

Facebook’s take on cryptocurrency is giving investors hope on the sector. Meanwhile, critics and security experts are scrutinizing Facebook as the social media mogul has just faced security scandals.

Critics’ Uneasiness Over Libra

After the announcement of Libra, the chair of the House Financial Services Committee, Maxine Waters said in a statement, “Facebook has data on billions of people and has repeatedly shown a disregard for the protection and careful use of this data”. Adding that the company is “…continuing its unchecked expansion and extending its reach into the lives of its users.”

Facebook has been linked to different security scandals in the past. CEO Mark Zuckerberg was previously under fire after appearing to be connected to some uncovered emails. Critics are saying that the company has problematic privacy practices.

And just this year, the number of Facebook users have declined followed by a series of data, privacy and hate speech scandals. A 2018 report says that there have been 50 million accounts breached in just the month of September.

Concerns over Libra’s privacy and policies were expressed by both United States and United Kingdom’s officials.

According to Facebook CEO Mark Zuckerberg, the Libra is designed to help millions of people who do not have bank accounts. This means giving them access to the banking world through their mobile phones.

Unlike other major cryptocurrencies such as Bitcoin and Litecoin, Libra’s goal is different. Facebook’s take on digital money is tied to global assets, preventing volatility which is common in the cryptocurrency world.



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