Bitcoin was formed shortly after the global financial crisis of 2008. At the time, there was global anger regarding the role of regulators and central banks. When Bitcoin was unveiled as a decentralized currency with no centralized control it was a deliberate act to cut out the middleman.
The earliest adopters of the new currency were people involved in the dark web, a part of the internet often connected with illicit activities like drug dealing and accessible through browsers such as Tor. Silk Road was one of the biggest dark web websites then making more than $1 million a day when it was shut down.
As Bitcoin continued to grow, its use was also adopted in other businesses. Many companies, including Microsoft started to accept Bitcoin. This interest caused the price of Bitcoin to rise significantly and at the beginning of this year, the price reached $19000. In total, the cryptocurrencies industry at its peak was worth more than $700 billion.
Today, the ideas that pushed Bitcoin that high have been challenged. First, the security of Bitcoin – and other cryptocurrencies – is in question. Just this year, cryptocurrencies worth more than $700 million have been stolen. Yesterday, a smart contract on an Ethereum-based adult entertainment site was breached leading to a loss of more than $38,000 worth of cryptocurrencies.
In addition to this, the privacy promised by Bitcoin creators has not been there. Today, governments are able to trace some of the transactions. In addition, many companies have stopped accepting Bitcoin because of the worries of its price fluctuations.
Today, the BTC/USD pair is trading at 6500. This is lower than yesterday’s high of 6525. This month, the pair has moved sideways as traders wait for the next move. If the downward trend continues, the pair is likely to reach the important support of 6300.
