“The value of crypto is based solely on what one person decides how much another person is going to pay for it,” says Microsoft co-founder Bill Gates
The cryptocurrency market is down 1.8% in the last 24 hours (3 p.m. June 7, 2022).
After gains and record highs in 2021 crypto Currencies go through a turbulent period with unpredictable price changes.
- Bitcoin (BTC) -5.71% (£23,590.76)
- Ethereum (ETH) -7.09% (£1,407.14)
- Tether (USDT) +0.34% (£0.8)
- BNB (BNB) -7.76% (£224.69)
- Cardano (ADA) -2.72% (£0.48)
- XRP (XRP) -2.34% (£0.31)
- Binance USD (BUSD) -+0.09% (£0.80)
- Solana (SOL) -11.42% (£30.87)
- Dogecoin (DOGE) -3.77% (£0.0638)
- Dotted (DOT) -6.31% (£7.27)
- Packaged Bitcoin (WBTC) -5.56% (£23,660.61)
- TRON (TRX) -2.52% (£0.0645)
- Avalanche (AVAX) -10.62% (£19.16)
- SHIBA INU (SHIB) -4.49% (£0.00000850)
The recent drop is attributed to comments by Bill Gates on Reddit, in which the Microsoft founder said: “I like investing in things that have value. The value of companies is based on how well they make great products. The value of crypto is based solely on what one person decides how much another person will pay for it.”
It follows a loss of confidence in the crypto market amid economic pressures around the world caused by Russia’s invasion of Ukraine and the post-Covid lockdown.
And the recent crashes caused by Tesla making a U-turn in accepting Bitcoin as payment for its products, and China pushing back on initial coin offerings and block exchanges, warning against speculative trading.
Another blow was dealt when, in a recent spate of crypto restrictions, China ordered a complete halt to bitcoin mining in its Sichuan province and also asked banks to stop supporting crypto transactions.
Now the country’s central bank, the People’s Bank of China, has effectively banned digital coins after announcing that all cryptocurrency transactions are illegal.
The decision has already impacted the global crypto market.
Why is the crypto market down?
An uncertain economic outlook for many countries around the world has crept into the deregulated digital currency universe, resulting in a lack of confidence in the market.
It follows China’s crackdown on crypto markets and Musk’s shocking announcement when he seemed in favor of Tesla accepting bitcoin as payment for its services.
The electric car company bought $1.5bn (£1.06bn) worth of bitcoin stock, which in turn sent the market price of both crypto and Tesla skyrocketing, but those days are a distant memory for traders .
The billionaire entrepreneur said, “We are concerned about the rapidly increasing use of fossil fuels for Bitcoin mining and transactions, particularly coal, which has the worst emissions of any fuel.”
In his Twitter post, Musk reiterated his belief that cryptocurrencies have a “promising future” but “cannot result in a high environmental cost.”
Musk has long been a proponent of cryptocurrencies, and the Tesla decision was felt across the market, while other digital tokens plummeted in price.
What is the price of Bitcoin and Ethereum?
Bitcoin’s price stood at £23,590.76 after the recent price drop (June 7th). coin base.
Ethereum is now valued at £1,407.14.
Cryptocurrencies are seen as an alternative to traditional banking methods as they are cheaper to move money as they are not regulated by the government or their banks.
The decision announced by Tesla and announced by Musk was viewed by some as an insult credibility of cryptos to become a viable means of payment against physical currencies.
Which Crypto Prices Have Dropped?
Bitcoin wasn’t the only cryptocurrency to feel the initial impact, with most of the top 10 falling in value.
Dogecoin, which was originally created as a hoax in 2012 before its shares skyrocketed, is also down, while Solana has seen its market price rise more than 8%.
Musk’s influence cannot be underestimated, even if companies like PayPal, Mastercard and Facebook Supporting cryptos, the Tesla announcement still rocked the market.