In October, people saw the decline in Bitcoin prices for the fourth straight month. It is mainly due to the increasing concerns from investors regarding this digital corporation. A declination of 12.8% was recorded in October for Bitcoin. According to the Coin Desk Bitcoin Price Index, they closed at 336.8 as on October 31st.
The popular digital currency has presently traded down by 1.72%, thereby bringing it to 331.02 dollars as on 1st November, 6:26 AM, GMT. Bitcoin has been declining for quite some time now as indicated by the 19.2% decline in September, 17.8% August and 9.1 percent in July after the small increase of 2.6% in June.
Bitcoin was launched back in 2008 and is now traded within a worldwide network of computers. They can be transferred without being admitted to any banks or clearing houses and performed without any associated fees. This is because virtual currency is never backed up by country or central banks. Earlier, we saw merchants publicly stating their support for Bitcoin.
Many Bitcoin businesses started their operations in October. Even then, the investors have remained largely pessimistic regarding the future of this digital currency. Earlier, we saw Microsoft co-founder Bill Gates talk about his support for Bitcoin. Furthermore, former SEC chairman Arthur Levitt declared that he would be advising Vaurum and BitPay, two different Bitcoin firms.
Presently, regulatory issues have been the major source of concern among the investors. The currency is completely banned in Russia. Furthermore, the Chinese government has ensured that the Bitcoin business will not rally any support from the nation’s banks. New York’s Department of Financial Services has proposed rules by which the free-wheeling nature of this digital currency will be curtailed. Critics are reporting that the rising adoption of Bitcoin payments by merchants is responsible for the fall in Bitcoin price.
The merchants are repeatedly converting their Bitcoin payments into US dollars, thereby increasing the fear of their prices falling further. In addition to that, the fall of many Bitcoin companies have damaged the morale of digital investors. For example, Bitcoin Trader, one of the most popular arbitrage services in the digital currency, collapsed earlier, when attacked by hackers. The Bitcoin prices are seemingly being coordinated across the various continental divides.
Falling prices in one location is affecting the others. Presently, questions are arising as to why the public wants to tolerate these scams? If Bitcoin was either useful or desirable, they would consider the people responsible for the sustenance of their network. The people involved are namely the Bitcoin miners who possibly operate at a loss when prices fall below $400.
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