The past months have seen a steep decrease in the value of bitcoins with occasional increase in the value of this cryptocurrency. People are losing hope in online trading that is in turn affecting the cryptocurrency firms. The reasons for this fall in the value of bitcoins are worth discussing.
Ban of online advertisements
Google and Facebook make up a huge proportion of online advertising platforms. Facebook had previously decided to restrict the advertisement of cryptocurrencies on its site when it felt that cryptocurrency advertisements are promoting illegal use of the digital cash. Google and Facebook agree to the fact that bitcoin advertisements portray a false sense of secured income in people’s minds. They felt that it would harm the economy of the state.
Half of the adds banned have been from Bitcoin Gambling dice sites like BetKing.
Thefts and scams
It is depressing when some online trader fools you into believing that your investment would become two folds in the next year and a half. The recent scam activities in the market of online trade have given a hard blow to the reputation of bitcoin as a safe bargain to invest in.
Awareness among people
The past year has made people aware about the possibilities of scams breaking out in the world of cryptocurrency. Financial advisors have warned their clients from laying their hands on digital money and predicted about the fall in its value earlier. The US Securities and Exchange Commission warned the citizens about the degrading effects that bitcoin had caused in the global economy.
Decrease in demand
One of the main reasons for the decrease in the value of bitcoins is that the demand of bitcoins has lessened in the past few months. People have been interested to get involved in other forms of income than investment in bitcoins.
Unpredictability and volatility
Bitcoin has seen its worse days in the past few months when the prices oscillated drastically day after day. A study showed that the news of the inflation in bitcoin prices was untrue and fake. Bitcoin in 2017 fell to a record low of 7000 GBP and ever since then the picture has not improved. People have realized that bitcoin’s growth is not certain and the prices vary considerably each day.
Can it get better?
Many of the financial experts believe that bitcoin will have an increase in its value in the recent years. It seems that at the beginning of 2018 it amounted to 8000 GBP and would cross 10000 by the end of 2019. If the pictures improve then you may have a go at this mysterious cryptocurrency affair.