Bitcoin 80 drop

JPMorgan CEO Jamie Dimon, for instance, made multiple comments throughout the year expressing his general antipathy for cryptocurrency.

Here's a BTC opinion - Bitcoin could surge to $300,000 then drop 90%

One theory that the U. Justice Department is reportedly looking into is that the digital coin Tether which is supposedly pegged to the U. This theory stems from an academic paper , which cast Tether in a very damning light. And it also led many to believe that the initial bitcoin craze was manufactured and destined to bust. This would be a path for more mainstream people in finance to dabble with blockchain; it would allow investors to dip their toes in bitcoin without owning the actual asset.

Not only that, but it would make bitcoin available on the most prominent financial markets.

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The U. Securities and Exchange Commission SEC , however, has yet to allow such a fund to exist—mostly because it is unable to monitor crypto-transactions in order to avoid market manipulation. The inability to get SEC approval really held back bitcoin and cryptocurrencies in general. Blockchains are decentralized, and democratic systems require buy-in from participants in order to keep the engines running.

In , this became apparent with the DAO hack. But DAO users had to agree to this change, and there were dissenters. Though the hard fork was approved, it created two active blockchains with two different sets of rules. Ultimately, this hack—coupled with the inability to deal with it—caused the DAO to end in This year we saw a similar fight break out—this time over bitcoin cash.

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This coin, mind you, is not bitcoin, though it is built on the same architecture. It was created by a group of miners who disagreed with some of the fundamentals of the initial bitcoin system, and so they forked a new blockchain and went their own way.

In terms of market capitalization, bitcoin cash has always been one of the top cryptocurrencies—in the ranks of Ethereum and XRP. This past autumn, the bitcoin cash community—which was created due to a technical disagreement with the larger bitcoin sector—started a civil war.

Essentially, bitcoin cash developers had diverging views on the software update for the system, and so they decided to implement another hard fork.

Bitcoin’s Value Drops 80 Percent In 24 Hours - Business Resource Center

This created two new bitcoin cash sects. Internally, the fork caused a lot of strife; one of the most popular bitcoin alternatives was unable to reach a consensus, and instead had to create two different paths that would essentially go to war with each other. When the hard fork arrived—and participants had to choose which path to take—the entire cryptocurrency market dropped.

What was a hot commodity has turned into a hot potato nobody wants to touch. Despite the realization that it was a bubble, even the toughest critics see some sort of a future. Meanwhile, even the most enthusiastic bitcoin evangelists are realizing that a retooling is in order.


Earlier this year, its value saw a significant boost due to turmoil in Cyprus when depositors flooded ATM machines to withdraw cash. The panic occurred after the European Union proposed a multi-billion dollar bailout contingent on an across-the-board tax on bank deposits. The heightened usage of Bitcoin, in addition to financial unrest in Europe, resulted in skyrocketing prices per unit, and reflected the promise that currency could reach a scale similar to global payment company PayPal or MoneyBookers.

A few saw signs of a massive bubble ready to burst, and some grew weary when the U. Treasury announced in March it would explore new laws to regulate Bitcoin.

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A report last week claimed the U. Commodity Futures Trading Commission sent subpoenas to the two firms after questions arose about the amount Tether really had on file. The issue is whether Tether was simply printing tokens when Bitcoin was falling to move the price.

A firm called Friedman LLP was meant to conduct such an audit, but that relationship now appears dissolved and the firm did not respond to a request for comment. However, some question whether a Tether crash would really hit the markets as hard as suggested. If this analysis is wrong, though, the crash could prove ugly.