• Nigerian/African Tech
  • Start Up
  • Internet
    • App
    • Mobile
    • Software
  • Gadgets
  • Money
  • Video
Tech News, Magazine & Review WordPress Theme 2017
  • Home
  • Africa
  • Business
  • Video
  • Metaverse
  • AI
  • Gadgets
  • Earnings
  • Tips
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
  • Home
  • Africa
  • Business
  • Video
  • Metaverse
  • AI
  • Gadgets
  • Earnings
  • Tips
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
TechBooky
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Home Cryptocurrency

Bitcoin And Cryptocurrency; The Fight Against The Abyss

Ayoola by Ayoola
May 20, 2021
Share on FacebookShare on Twitter

It is no news that Bitcoin and in extension digital currency has been experiencing a devastating free-fall recently. Millions of digital currency users may have been in a state of despair the past few weeks most especially yesterday which went pretty wild of the mark.

Also On TechBooky

NFTs: The Year 2023 In View And Looking Ahead To 2024

Inside The Hack That Cost Crypto Exchange Patricia $2m

The Benefits Of Working With A Web3 Marketing Agency

Market Making In Decentralized Exchanges (DEXs)

How Cryptocurrency Has And Will Change The Gaming Industry

The price of the renowned digital currency fell as low as 30% in the wake of the China Banking Association warning to member banks of the risks inherent in trading with digital currencies. The decline stabled at below 10% in the afternoon but the damage didn’t end, Bitcoin had lost about $70 billion in market depreciation in the space of 24 hours.

The renowned crypto coin had hit a high of $64,800 around April but incidentally lost about 38% in market value, in what could be tad dramatic.

As if China’s warning wasn’t enough, Elon Musk of Tesla came with another bang-blow: Tesla would stop accepting Bitcoin and other digital currencies as payment on cars. Musk premised his decisions on what he termed as concerns about the “rapidly increasing use of fossil fuels for Bitcoin mining and transactions,” but added that Tesla may accept other digital currencies if they are less energy-intensive than Bitcoin. He further posited that his company would not be selling its Bitcoin.

To add salt to injury, the Chinese Banking Association was very vivid as it posted on its website advising financial institutions to “resolutely refrain” from providing services through the use of digital currencies occasioned by their volatility.

The CBA’s announcement jolted the crypto world as Bitcoin and other crypto-currencies had a fall in stock after the statement.

By Wednesday afternoon, Bitcoin was around $40,310 per coin as it went down more than 7%. Other renowned crypto-currencies like Etherium lost between 7% and 22% of their value.

Digital currencies swinging and falling is not an unusual occurrence but Bitcoin falls around $20,000 in just 24 hours is way too extreme.

The Elon Musk Influence

Tesla Chief Executive had raised the stocks of Bitcoin in February when it announced that Tesla had invested as much as $1.5 billion in Bitcoin. This was greeted with elation among crypto users, especially with the reality that Tesla has started accepting Bitcoin as payment. Bitcoin became a beautiful bride as its fortunes rose up exponentially with the digital currency going on a free high jump.

But the joy was short-lived with Elon Musk performing a decision reversal when he announced that Tesla would be halting the acceptance of Bitcoin as a legal tender for electric cars payment. His reason vis-a-vis potential environmental damage from the mining of Bitcoin was greeted with mixed feelings. The singular announcement had the crypto-currency falling below $50, 000, a development that spread to other popular crypto-currencies.

It is on note that in a study by the Technical University of Munich and the Massachusetts Institute of Technology in 2019, it was discovered that the network of Bitcoin generates an amount of value that is similar to a large Western city or a whole developing country like Sri Lanka.

Conversely, Last year a study at the prestigious University of Cambridge estimated that on average; about 39% of ‘proof-of-work’ mining through crypto was powered by renewable energy, which is majorly hydroelectric.

There were also fears in some quarters that Tesla may later on sell some or all of its shares in Bitcoin but Elon Musk assured in a tweet that Tesla would still hold on to its investment but this was not enough to allay fears as the panic heightened.

 The Indifferent Ones

Africa’s giant, Nigeria via its Central Bank had restricted cryptocurrency transactions with major banks months back with the growing scepticism of it not being traced to a source and the ability of hackers, terrorists to latch on its use without being traced. Although the move heralded wild condemnation from the youths of Nigeria, who have found solace in Forex trading with the use of crypto, the government stood its ground.

Digital currencies were projected as the new world replacement of paper money but it hasn’t fully transitioned into the mental agreement of the generality of the world population with scepticism coming from its volatility a major impediment. US Federal Reserve Chairman, Jerome Powell had said that the central bank prefers to call crypto coins “crypto-assets” because of its limited ability to store value, a primary currency function, occasioned by its volatility.

We can hence deduce that cryptocurrency hasn’t yet convinced the world that it is a better option to paper money.

The Heavy Hand Worries

In the United States, officials in Washington have not minced words in advocating for digital currency regulation and this may be a bigger worry as America seem to have a crucial role to play in swinging world opinions to the viability or otherwise of a project.

The Chairman of the Securities and Exchange Commission, Mr. Gary Gensler had inferred last month that digital currency markets would be a major beneficiary from more oversight in the protection of investors.

Facing the House Financial Services Committee earlier in the month, Gensler had said neither the Security and Exchange Commission or the Commodity Futures Trading Commission has the “regulatory framework” for making trades via digital currencies yet. He further posited that he feels the Congress may have to later address the situation as according to him, “there is really no protection against fraud or manipulation”.

The Future Is Not As Bleak

All may not be that bleak and bad as Social Media giant, Twitter CEO, Jack Dorsey together with his digital payment company, ‘Square” are big fans and investors of Bitcoin. Jack has not hidden his love for Bitcoin and despite its current dip, he is actively pushing Twitter to promote its use. Renowned brand, Overstock.com accepts Bitcoin while US oldest bank, BNY Mellon has announced it would infuse digital currencies as a payment pattern for its teeming customers. MasterCard has also indicated it would start certain crypto currencies on its large customer base.

Bitcoin would certainly not go down into oblivion, at least for a long time as more than a whopping 300,000 transactions on average happens in a day, with the probability that it would surpass that in the soon future.

Tags: crypto fallcryptocurrency
Ayoola

Ayoola

Ayoola Faseyi, an Abuja based Journalist with interest in Technology and Politics. He is a versatile writer with articles in many renowned News Journals. He is the Co-Founder of media brand, The Vent Republic.

BROWSE BY CATEGORIES

Freshly Squeezed

  • LimeWire’s Unexpected Transformation From Music Piracy To Generative AI September 20, 2023
  • The iPad Is Finally Getting The WhatsApp App – Sort Of September 20, 2023
  • Elon Musk’s Neuralink Gets Green Light For First Human Trial for Brain Implant September 20, 2023
  • iPhone 15 vs. Top Competitors: A Comprehensive Comparison September 19, 2023
  • Elon Musk Says X Is Moving Towards Subscription Fees September 19, 2023
  • Google’s Bard Gets Big Changes, Now Connects To Gmail And Other Services September 19, 2023

RSS More from TechBooky Africa

  • The Best Android Smartwatches of 2023.  September 13, 2023 Eni Emeka
  • “Crypto vs. Taxes” — The Blockchain Association of Kenya Takes on the Government. September 2, 2023 Eni Emeka
  • Chargel Is A Catalyst for Transformation in Cote d’Ivoire’s Energy Landscape. September 2, 2023 Eni Emeka
  • Black Ostrich Ventures’ $20m Equity Funding for Pre-Seed & Other Early-Staged Start-Up Investment Grant. September 1, 2023 Eni Emeka
  • MTN Nigeria Commercial Paper Deal Impact The Gravity Of Adequate Working Capital Equity For Businesses & The Industry. August 31, 2023 Eni Emeka
  • Airtel Uganda Projectile IPO Estimated Worth, Hovers At $215 Million & Above. August 31, 2023 Eni Emeka
  • Bank of Ghana Issued Eganow Operational ePayment Service License, …is Disrupting The Country’s FinTech Industry. August 30, 2023 Eni Emeka
  • Plural AI Opens Shop In South Africa & Nigeria To Track Public Policies. August 30, 2023 Eni Emeka
  • TymeBank is Making Banking More Affordable and Convenient With “Zero Transaction Fee” Via “PayShap” August 30, 2023 Eni Emeka
  • HIGHLIGHTS — Techcrunch Disrupt Equity Battlefield Got Start-ups Pitching Innovative Tech Solutions Per Africa’s Biggest Challenger. August 30, 2023 Eni Emeka

Receive top tech news directly in your inbox

Loading

RSS More from TechBooky Business

  • Instacart’s Strong Nasdaq Debut Sees 12% Stock Surge At Closing Yesterday September 20, 2023 Femi Balo
  • DoorDash To Move Listing from NYSE to Nasdaq September 15, 2023 Femi Balo
  • Arm Holdings Gains Continue On Nasdaq Debut Week September 15, 2023 Femi Balo
  • Oracle Faces Investor Concerns as Q1 Earnings Disappoint September 15, 2023 Femi Balo
  • HP Faces Investor Concerns as Q3 Earnings Fall Short of Expectations September 2, 2023 Femi Balo
  • Klarna Shows Strong Progress Toward Profitability With A 67% Reduction In Losses September 2, 2023 Femi Balo
  • Salesforce Surpasses Expectations With Strong Quarterly Earnings September 2, 2023 Femi Balo
  • OpenAI On Track To Make $1b In Revenue In 12 Months August 30, 2023 Femi Balo
  • BYD’s Remarkable Profit Surge and Electric Vehicle Triumph August 29, 2023 Femi Balo
  • Baidu Reported A Strong Q2 Performance August 29, 2023 Femi Balo

Browse Archives

September 2023
M T W T F S S
 123
45678910
11121314151617
18192021222324
252627282930  
« Aug    

About Us

TechBooky

TechBooky is a social Tech blog with a special focus on the budding African Technology sector. TechBooky is currently based in Abuja, Nigeria.

Subscribe to TechBooky

Enter your email address to subscribe to TechBooky and receive notifications of new posts by email.

Join 17,656 other subscribers.

Receive top tech news directly in your inbox

Loading

Popular Tags

AI (307) amazon (96) android (304) app (664) Apple (500) artificial intelligence (332) business (419) china (117) cloud (141) cryptocurrency (164) ecommerce (112) enterprise (257) facebook (482) gadget (498) gaming (177) google (579) government (403) guest post (109) instagram (147) internet (387) ios (262) iphone (220) microsoft (282) mobile (321) new feature (329) nigeria (282) privacy (146) research (134) samsung (153) security (387) smartphone (257) social media (716) software (460) startup (272) streaming (149) telecom (159) tips (351) transport (109) twitter (250) united states (205) users (157) videos (116) website (166) whatsapp (136) youtube (110)

Quick Links

  • Home
  • Africa
  • Business
  • Video
  • Metaverse
  • AI
  • Gadgets
  • Earnings
  • Tips

RSS African Tech News

  • The Best Android Smartwatches of 2023.  September 13, 2023 Eni Emeka
  • “Crypto vs. Taxes” — The Blockchain Association of Kenya Takes on the Government. September 2, 2023 Eni Emeka
  • Chargel Is A Catalyst for Transformation in Cote d’Ivoire’s Energy Landscape. September 2, 2023 Eni Emeka
  • Black Ostrich Ventures’ $20m Equity Funding for Pre-Seed & Other Early-Staged Start-Up Investment Grant. September 1, 2023 Eni Emeka
  • MTN Nigeria Commercial Paper Deal Impact The Gravity Of Adequate Working Capital Equity For Businesses & The Industry. August 31, 2023 Eni Emeka
  • Airtel Uganda Projectile IPO Estimated Worth, Hovers At $215 Million & Above. August 31, 2023 Eni Emeka
  • Bank of Ghana Issued Eganow Operational ePayment Service License, …is Disrupting The Country’s FinTech Industry. August 30, 2023 Eni Emeka
  • Plural AI Opens Shop In South Africa & Nigeria To Track Public Policies. August 30, 2023 Eni Emeka
  • TymeBank is Making Banking More Affordable and Convenient With “Zero Transaction Fee” Via “PayShap” August 30, 2023 Eni Emeka
  • HIGHLIGHTS — Techcrunch Disrupt Equity Battlefield Got Start-ups Pitching Innovative Tech Solutions Per Africa’s Biggest Challenger. August 30, 2023 Eni Emeka

RSS Business Tech News

  • Instacart’s Strong Nasdaq Debut Sees 12% Stock Surge At Closing Yesterday September 20, 2023 Femi Balo
  • DoorDash To Move Listing from NYSE to Nasdaq September 15, 2023 Femi Balo
  • Arm Holdings Gains Continue On Nasdaq Debut Week September 15, 2023 Femi Balo
  • Oracle Faces Investor Concerns as Q1 Earnings Disappoint September 15, 2023 Femi Balo
  • HP Faces Investor Concerns as Q3 Earnings Fall Short of Expectations September 2, 2023 Femi Balo
  • Klarna Shows Strong Progress Toward Profitability With A 67% Reduction In Losses September 2, 2023 Femi Balo
  • Salesforce Surpasses Expectations With Strong Quarterly Earnings September 2, 2023 Femi Balo
  • OpenAI On Track To Make $1b In Revenue In 12 Months August 30, 2023 Femi Balo
  • BYD’s Remarkable Profit Surge and Electric Vehicle Triumph August 29, 2023 Femi Balo
  • Baidu Reported A Strong Q2 Performance August 29, 2023 Femi Balo

Recent News

LimeWire’s Unexpected Transformation From Music Piracy To Generative AI

LimeWire’s Unexpected Transformation From Music Piracy To Generative AI

September 20, 2023
WhatsApp Will Now Allow Improved Preview For Documents

The iPad Is Finally Getting The WhatsApp App – Sort Of

September 20, 2023
Elon Musk’s Neuralink Gets Green Light For First Human Trial for Brain Implant

Elon Musk’s Neuralink Gets Green Light For First Human Trial for Brain Implant

September 20, 2023
iPhone 15 vs. Top Competitors: A Comprehensive Comparison

iPhone 15 vs. Top Competitors: A Comprehensive Comparison

September 19, 2023
Elon Musk Says X Is Moving Towards Subscription Fees

Elon Musk Says X Is Moving Towards Subscription Fees

September 19, 2023
Google’s Bard Gets Big Changes, Now Connects To Gmail And Other Services

Google’s Bard Gets Big Changes, Now Connects To Gmail And Other Services

September 19, 2023
  • About TechBooky
  • Submit Article
  • Advertise Here
  • Contact us
  • Privacy Policy
  • Disclaimer
  • Login

© 2021 Design By Tech Booky Elite

Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
  • Home
  • Africa
  • Business
  • Video
  • Metaverse
  • AI
  • Gadgets
  • Earnings
  • Tips

© 2021 Design By Tech Booky Elite