Hit enter after type your search item
Home / Discover / Business / As crypto markets plunge $400 billion, coinbase reveals major bitcoin and ethereum price risks

As crypto markets plunge $400 billion, coinbase reveals major bitcoin and ethereum price risks


The future of Bitcoin and Ethereum might be riskier than sportsbetting 24. Why? The cryptocurrency market saw a plummet of about 25 percent due to the spread of panic among many traders.

As a result, Coinbase, the cryptocurrency exchange, has released its public debut documents on the Nasdaq stock exchange stating that there is the possibility of the destabilization of Bitcoin and Ethereum prices.

Here’s how:

As it stands, Bitcoin and Ethereum provide Coinbase with most of its revenue through transfer fees. This is 56 percent of the total trade volume on the exchange. Currently, the Coinbase Company is valued at over $100 billion.

Nevertheless, there are certain factors that might affect the price of both Bitcoin and Ethereum in a meaningful manner. These factors include:

  • Hacks
  • Disruptions
  • Forks or splits in the network
  • Quantum computing development
  • Cryptocurrency regulations

This shows that the future of Bitcoin and Ethereum lies on factors that cannot be predicted or evaluated long term. Because of their unpredictability, Bitcoin and Ethereum are feared to plummet at any given time.

Another significant factor that threatens Bitcoin’s life force is the realization of the person that developed the cryptocurrency. Known as Satoshi Nakamoto, the Bitcoin developer is said to possess Bitcoins that are valued at $30 billion.

As such, many people believe that if and when Nakamoto comes forward, the decentralized nature of Bitcoin would be ruined, not to mention the cryptocurrency reputation. As a result, Nakamoto has been the subject of much debate and scrutiny in the media.

However, no investigation has proven successful in identifying the Bitcoin developer. And, individuals like Craig Wright, an Australian entrepreneur, have continuously failed to prove that they are indeed Bitcoin’s developers.

So what does this mean for Bitcoin and Ethereum?

It is no secret that Bitcoin has always been an extremely volatile currency. For instance, the price of Bitcoin climbed to $20,000 in 2017, but in 2018, it crashed and was valued at $3,000. Last year alone, the price of Bitcoin reduced to under $4,000 in March only to rebound through the summer.

By October, the price of Bitcoin had again skyrocketed past its high in December 2017. Why? The digital assets had become a point of interest for many of the institutional investors. Let’s look at 2021.

At the start of the year, the combined value of bitcoin tokens in circulation was estimated to be around $500 billion. By last week, this value had doubled to reach $1 trillion – this is the first time the recorded bitcoin value in circulation has reached a trillion dollars – only to plummet further by $400 billion.

This saw the price of one bitcoin rise to $60,000 and then decline rapidly to $43,000. Therefore, the only sure bet in the Bitcoin and Ethereum is the volatility of the prices due to the cycles in the cryptocurrency industry. But, Coinbase remains hopeful regardless of these fluctuations because the long-term perspective is what matters concerning cryptocurrency.

Other articles from totimes.caotttimes.camtltimes.ca

COVID-19 Vaccine

More than 36,000 vaccine doses have been given to Toronto residents over 80

  • Facebook
  • Twitter
  • Linkedin
  • Pinterest
  • Reddit
This div height required for enabling the sticky sidebar