What is Bitcoin, Price Prediction and Why recent fall down happened?

In this article, we will sell insights regarding the Bitcoin journey, how it began when Bitcoin got famous, Bitcoin dominance, and why unexpected tumble down happened. As we know Bitcoin is a decentralized digital currency.

WHAT IS BITCOIN?

Bitcoin is one of the most popular Cryptocurrencies which was announced in the year 2008 and it was launched in 2009 by an unknown personality i.e. Mr. Satoshi Nakamoto. Bitcoin is based on the BlockChain technology. Bitcoin supply is limited, unlike normal currency that is restricted to 21 Million only. According to sources around an 18.6million+ bitcoins have already been mined by bitcoin miners. Bitcoin has the largest market cap in the Cryptocurrency market.

Bitcoin can be earned by investing in cryptocurrency exchange platforms or you can get it through peer-to-peer and it is also given as a reward for miners for finishing the verified transactions on the blockchain that contains math puzzles. Bitcoin transaction takes place on a public ledger which is accessible to everyone but the transactions are irreversible. Bitcoin is accepted by some countries while other countries banned it by considering it as illegal.

Bitcoin started getting popular in the year 2011 when its price became 1$. A person named Laszlo Hanyecz placed the first transaction by exchange of 2 pizzas for 10,000 bitcoin that cost about $30 in the year 2010 while now it would be around $34,000+. Bitcoin became very much popular because of acceptance and adoption by major companies like JPMorgan, PayPal, Goldman Sachs, etc.

BITCOIN MINING:

Bitcoin mining is one of the processes to acquire bitcoin without putting any genuine currency and furthermore new bitcoins will come into circulation. Bitcoin mining implies solving extremely complex math problems. It will take around 10 minutes to solve a numerical problem in order to mine the bitcoin. If a miner solves those difficult problems he/she will receive bitcoin as a reward.

MOTIVATION BEHIND BITCOIN:

Bitcoin, the first virtual currency created for transferring money directly from one person to another over the internet depending on the SHA-256 algorithm to reduce the transaction fees without any centralized network through bitcoin wallets or any other. The real price of bitcoin in Indian currency not only in rupee but in every currency surges daily from one point to other because it doesn't have any intrinsic value.

WHAT IS BITCOIN DOMINANCE?

Bitcoin Dominance can be identified as the entire flow of the bitcoin market cap compared with all other cryptocurrencies. This dominance helps in understanding the rally of entire altcoins in the bitcoin(BTC) pair. If bitcoin dominance decreases then altcoins will rise in BTC pair and if bitcoin dominance increases then altcoins fall down in BTC pair. Suppose if bitcoin dominance decreases below 40% at the current time then we can see a good rise in altcoins 

WHY RECENT FALL DOWN HAPPENED? 

Bitcoin jumped down almost 30% to near $30,000 in the past week and it's continuing in the same rally around $30k-$35k. Elon Musk declared in February that his company Tesla had put $1.5 billion in Bitcoin. In March, Tesla began accepting Bitcoins as payments. Then the bitcoin price run-up very high near to $64k. Later it stopped accepting Bitcoin. crypto experts claim that due to tweet of the Elon Musk that Tesla no longer accepts Bitcoin because of environmental issues surge the price falls down.

And there is news of China ban on mining of crypto also one of the reason. Many whales also exited from the market may be a possible reason too. These Bitcoin prices falling down also affected Altcoins too. Almost every Altcoin surged to more than 40%. Bitcoin dominance also rapidly increased and continuing. Experts say that Bitcoin will rise again because this dip already happened in past as well.

Previous Bitcoin Dips:

In 2011 : $35 - $2

In 2013 : $220 - $70

In 2013 : $1000 - $200

In 2017 : $20000 - $3000

In 2021 : $64000 - $30000*

From the History whenever Bitcoin fall down it raised to a new all-time high. Industry experts said that after a such large rally in this type of volatile market there should be a correction that should take place and also mentioning that it will rise again to a new all time high.

PRICE PREDICTION OF BITCOIN:

Crypto investors claiming that the bitcoin has potential to reach $100,000 by the end of 2021 if the bull market continues to happen. Experts expecting that if the markets run in a positive way then the bitcoin price would be around $275,000 by the end of 2023-2024.

If the market continues to rally high it has possibility of reaching $500,000 at end of 2025. When we expecting highs there would be lows too. sometimes market crashes and anything may happen as it is a volatile market no one can predict proper price.

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