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Ever since 2022 came into focus, Bitcoin along with other cryptocurrencies like Ethereum, Cardano and Dogecoin have been crashing tremendously. Crypto holdlers may not be happy, but some companies like Microstrategy took advantage of the situation and bought $91 million worth of BTC. So why is Bitcoin crashing, and how is it doing so?
According to thesun.com, experts suggest the drop is linked with Kazakhstan (Country in Central Asia) cutting off it's internet to supress recent violent protests against the government and their president. Kazakhstan is a very important role in this situation, because it's one of the largest Bitcoin Mining countries in the world. Roughly 18% of Bitcoin's hashrate is located there, so the impact caused Bitcoin to drop by 12%.
Bitcoin mining is surrounded by controversy because of the sheer amount of fossil fuels needed to mine the cryptocurrency and the negative impact this has on the environment. There has been a recent uncertainty about whether Bitcoin is bad for the environment, as Bitcoin-mining operations worldwide now use energy at the rate of nearly a hundred and twenty terawatt-hours per year. This is about the annual domestic electricity consumption of the entire nation of Sweden. According to the Web site Digiconomist, a single bitcoin transaction uses the same amount of power that the average American household consumes in a month, and is responsible for roughly a million times more carbon emissions than a single Visa transaction.
Countries like South Korea pledged to tackle the rise in money laundering taking place via cryptocurrency, after multiple Crypto scam centers have been found. Bitcoin has continued to rise and fall as other global administrations and regulators think about laws to curb increased crypto activity often attributed to laundering and crime.
Bitcoin fell bellow $41,000 on January 8th, 2022, and the 24-hour trade volume jumped to $1.93 billion due to panicking investors. As the cryptocurrency keeps crashing, panicking investors sell their crypto hoping for the best.......or is it?
