Bitcoin’s price has fallen over 70% since the beginning of 2019.
Cryptocurrency Bitcoin has been in the news a lot lately, and not for good reasons. Since the beginning of 2019, its price has fallen over 70%, from $13,000 to around $4,000. This fall is due to several factors, including increased regulation in China and South Korea and Facebook banning cryptocurrency ads on its platform. So why is Bitcoin going down? And how did it get so high in the first place?
What is Bitcoin?
Bitcoin is a cryptocurrency that was created by an unknown person using the alias Satoshi Nakamoto in 2009. Transactions are made without middlemen, so there are no transaction fees and no need to give your real name. More businesses are beginning to accept them: You can buy web hosting services, pizza or even manicures.
How does Bitcoin work?
“To understand what’s special about Bitcoin,” wrote tech writer Steven Johnson in 2014,” we need to understand how it works at a technical level.” Johnson goes on to describe it as “a kind of collective dream”:
“A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.”
“The result would be a financial system without banks or credit card companies or PayPal.
“Transactions would be nearly instant and free … Personal computers could act as banks.”
“Users could control their funds and transactions with passwords or keys stored on computer hard drives.”
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