Various events in recent weeks have caused the cryptocurrency to lose value significantly.
2 min read
Experts say that the drop has to do with China banning the use of the currency. Banned areas like Xinjiang and Mongolia are attractive to miners because electricity is so cheap. Last Friday, 26 bitcoin mines were ordered to close, which generate about 90% of the currency in the nation. In addition, China accounts for 65% of the world’s cryptocurrency production, according to the University of Cambridge.
Although people like Elon Musk and Donald Trump have spoken out against bitcoin publicly, some investors came out to defend it. Musk stopped accepting cryptocurrency payments at Tesla and Donald Trump told Fox Business that the coin “appeared to be a scam.” The United States has shown its concern with the misuse of it since several groups of cyberattacks use it to launder their money and it becomes a “massive enabler”.
However, Mark Cuban, owner of the Dallas Mavericks, tweeted defending cryptocurrency, saying it was better than gold. Mike Novogratz, CEO of Galaxy Digital is another major cryptocurrency investor and was also upbeat saying that prices may still recover.