When the term “cryptocurrency” first burst onto the scene about 13 years ago, many social media users—including regular people—did not give it any weight. However, as time went on, its significance began to grow.
Then, at one time, Bitcoin rose to a value of several thousand dollars. Bitcoin is now being used in numerous websites and wallets. New currencies similar to Bitcoin are being introduced to the market. In addition to Bitcoin, today many cryptocurrencies, including Ethereum, Litecoin, and Dogecoin are being used. Moreover, in the past year, Bitcoin has gained extraordinary fame and popularity.
However, Bitcoin started to depreciate in November 2021, and it kept on decreasing. Following various scandals and thefts in the crypto world, Bitcoin is now at its lowest level.
Experts believe that cryptocurrency is going through its worst crisis since its inception. And it may get worse. Following the FTX scandal that came to the fore last month, millions of people who have invested in cryptocurrencies are in trouble as the crypto market began to slide further.
The founder of FTX, Sam Bankman-Fried, has been in custody. He is accused of defrauding millions of people, according to US officials.
Professor Carol Alexander foresaw the crash of the Bitcoin market last year. He said that things were happening in such a mysterious manner that was even surprising to him.
While quite a few cryptocurrencies thefts have come to light, the value of two digital currencies fell dramatically in May, indicating that investors withdrew $400 billion from the market. The Ronen network hackers stole more than $60 million in cash from the crypto market. Major enterprises going bankrupt and currencies with declining value have started to turn away both small and large investors. The price of a Bitcoin coin has so far dropped by 70 percent, to 16,722 US dollars, according to the most recent data.
The Binance platform saw 1.4 billion dollars in withdrawals from the cryptocurrency market on Tuesday, but the company’s founders claim that business is continuing as usual. According to experts, exchanges’ continued existence in the current economic climate depends on their ability to persuade investors that the cryptocurrency market is still a secure place for investment. Cryptocurrency redemption might not be feasible with anything less.