Bitcoin, the very popular cryptocurrency in every country of the world, is facing criticism nowadays. Even though the general masses accept bitcoin on a large scale, the governments of different nations are not in favour of the same. Also, due to the economic instability and hands by the bitcoins, there could be severe problems in the future. Therefore, many nations like the United States of America, India and others are looking forward to imposing rules and regulations on cryptocurrency transactions. Also, they want to regulate bitcoin and other cryptocurrencies like ETH and SOL.
Towards the ending of 2021, there were a lot of positive events going on, which led to the rise of bitcoin. In 2021, the prices of bitcoins started to decline. However, there were several reasons which led to these things. First of all, China became the country that led to the fall of cryptocurrency mining operations. They imposed strict regulations on the cryptocurrency mining operations, and therefore, the company shifted from China to other nations. Therefore, Kazakhstan became the second-largest hub for cryptocurrency mining operations. It was supplying almost about 1/5 of the total bitcoin mining supply to the whole world. There was a significant event of accepting bitcoin as a legal tender by El Salvador, but it did not significantly impact the whole cryptocurrency space. Therefore, the bitcoins prices declined in the mid of 2021, but they started to recover soon. In November, it reached $69,000, and bitcoin was then at the highest price of all time. You may click the Official Bitcoin Revolution site to know more about bitcoin prices.
Kazakhstan incident
As mentioned above, Kazakhstan became the second most popular cryptocurrency mining operation providing country after the United States of America. It came into effect after China banned all kinds of cryptocurrency mining operations. Before that, China banned cryptocurrency trading altogether, and bitcoin was a significant currency under target. However, the cryptocurrency traders and miners did not stop by this. They changed their trading and mining location, but the operations continued. Therefore, there were many moments in the cryptocurrency market because of these events.
Now, Kazakhstan is an essential country in the life of a bitcoin because it supplies 1/5 of the total money supply. However, due to the recent increase in fuel prices, the people of Kazakhstan are on the rage for the government. They are on the road and rioting against the government because of the increasing fuel prices. On the contrary, they are stopping the protests by force. It led to a sudden cut in Internet supply in the whole nation. The cryptocurrency mining operations widely depend on the Internet itself. Therefore, due to the curb down of internet supply, the mining operations are also down now. It led to the downfall in bitcoins’ prices, which is a severe concern for cryptocurrency traders.
Regulations
Many nations of the world are looking forward to imposing regulations on the cryptocurrencies like bitcoin. Any government or financial body does not impose controls over the movement of BTC. They move freely in the market, and they can severely damage the economic system of different nations. According to some leaders of the whole world like India, cryptocurrencies are a significant attraction for the country’s youth. If they keep on investing their money in cryptocurrencies, the bonds issued by the government will not be purchased by the people, and therefore, the government will not have money to do welfare for them. Therefore, the concerns are ever-increasing. People are not aware of the severe threats they are getting because of the bitcoins, and hence, the prices of bitcoins are declining now.
Criticism
Criticism is an essential factor that leads to cryptocurrency prices declining or increasing. Yes, whether you accept it or not, the prices tend to fall whenever there is a criticism about bitcoin. The same is happening right now. Due to some experts sitting in different corners of the world, bitcoin is just a bubble, and it will blow up eventually. Therefore, the criticism is leading towards declining prices of bitcoins. People are less optimistic because of the adverse events, and they are withdrawing their investment from this incredible digital coin.