Abstract : Xinhua News Agency’s report titled with Bitcoin Plunged, How Big the Blockchain Bubble is concluded the main causes of Bitcoin’s decline.
November 26 (ChainDD) Bitcoin’s recent plummet was caused by multiple , according to Xinhua News Agency’s report titled with Bitcoin Plunged, How Big the Blockchain Bubble is. The report concluded the main causes of Bitcoin’s decline as the following three: First, quite a lot blockchain projects nowadays have significant bubbles. Even the blockchain infrastructure was not complete and health, people working in the industry continued to increase the market’s expectation to the unrealistic level, which eventually was stroke by the reality and weakened the confidence constantly. Second, Bitcoin market relies on the fund and is relatively small in scale. The market capitalization of the whole cryptocurrencies is no more than that of a listed Internet giant. Therefore, when the Bitcoin user with large holdings sold out, Bitcoin price is so easy to volatile greatly. Third, from the objective side, the recent Hash War in the cryptocurrency filed shocked some insiders’ confidence, and resulted in some users’ panic and voted with their feet, thus leading to more volatility in the market.