Don't be fooled, when you say that the price of a bitcoin is a million rupees in the international market, you become a millionaire with 77 bitcoins!
So with such a virtual currency called Bitcoin or online currency, these youngsters with a passion for technology and computer knowledge became millionaires in just 1-2 years.
You may have heard of many success stories of cryptocurrency millionaires in the last two years. This virtual currency had been growing steadily for the past two years, when it had captivated everyone.
But, as fast as this currency has risen, a big drop has been seen in Bitcoin and other virtual currencies this week. The currency has depreciated by 30% in the last two days. What are the reasons for this decline, so let's understand why there is a reason to panic ...
# Why is Bitcoin falling?
Bitcoin has fallen as much as 38 percent since April 13 and is now well below 40,000, up from 1 million at one time.
So if you had a bitcoin, you could make a million dollars selling it. But in the last month alone, investors have lost nearly 65,000 worldwide in a bid to make a lot of money.
In general, currency in all countries means that the money we use is converted into currency by the country's central bank. It is also controlled by the bank. But, there is no such bank that gives bitcoin. So the transactions that take place in it are between two people, secure and through computer. They are free because they have no control over the bank or the country. That is why this virtual currency is popular among the youth.
In addition, in the last few years, it has been accepted as a currency in many places in the United States and other countries. That means you can use Bitcoin to buy it online from Burger, pay your electricity bills, phone bills. So the popularity of Bitcoin increased.
Bitcoin is a cryptocurrency. I.e. virtual currency. They are created online through a computerized system called 'Mining'. And then these bitcoins become available on online platforms for buying and selling. We can also buy it in US dollars or other currencies.
Let's see today why this virtual currency, which is becoming popular all over the world, is suddenly declining.
# Chinese central bank warning
As mentioned above, many financial institutions accept Bitcoin as a currency. It also deals with international transactions. However, the Chinese Banking Association wrote on its website on Wednesday that financial institutions in the country should avoid trading in Bitcoin in view of the fluctuations in Bitcoin prices.
China is, in fact, the only country that has ever promoted cryptocurrency or digital currency. Instead, they are trying to bring the national digital currency to market. Surprisingly, the Chinese bank's warning did not seem to be a warning to people around the world. Investors began withdrawing their money from Bitcoin.
Similarly, in Bitcoin or any other virtual currency, fluctuations of one thousand value can easily happen in one day. This currency is risky. However, the current decline is more sustained than ever.
# Tesla's Elon Musk also sold his bitcoins
Even before China issued the warning, an incident was taking place in the United States. Elon Musk, owner of the electric car company Tesla, is actually a proponent of cryptocurrency.
He announced in February that Tesla had accepted Bitcoins and some other cryptocurrencies for car sales. So immediately the price of Bitcoin went up.
But, they’ve been on the move lately. He reversed his decision to accept Bitcoin, saying it was harmful to the environment. They also sold some of our bitcoins. Done. Bitcoin sales in the US began. That's when the international currency fell to 50,000 in April.
# What happens next?
The current decline in Bitcoin is temporary, according to experts around the world. And those who invest in the long run need not panic, says the CurrencyCoin website.
The big fluctuations are the stability of this currency. Experts do not believe that the current decline has eroded the credibility of the currency. Because, according to him, people still have 1,730 billion invested in Bitcoin.
In a nutshell, Apple has a turnover of 2,000 billion and Amazon has a turnover of 1,700 billion.
This means that if you are a long-term investor in Bitcoin, you have nothing to worry about, say experts.
