Fall and rise in the value are the two most common types of aspects of digital currencies like bitcoins. The individuals who are able to understand the difference between these two elements are the ones who can easily make good revenues through bitcoins. Sometimes bitcoin can also face a very high fall or rise, which can affect the entire market in a couple of moments. A downfall like this has recently occurred with bitcoins, which has badly affected investors all over the world. Even the Indian investors are in worry whether to invest in the bitcoins or wait for some to prevent a serious loss.
Actually, no one was expecting that announcement by Elon Musk, and China’s statement could result in a more than 30 percent fall in the value of bitcoin. A surprising incident occurred with the crypto investors of India on 17th May when the top-rated exchange platform like WazirX got crashed. They actually faced downtime because of the impossibility of handling the high trading volumes over the forum.
What has affected the huge number of investors?
The report suggests that Fear, Uncertainty, and Doubt or FUD have affected the interest of Investors in Bitcoins. Everyone is aware of the digital currency from the name of bitcoins because it is termed as the most valuable asset which faced a serious fall in its value on a single day. The main reason behind the decline in the value of the world’s best cryptocurrency occurred due to a statement released by Elon Musk, who is the owner of Tesla.
He mentioned that Tesla would not accept the payments in bitcoins because there is a wastage of lots of fossil fuels to conduct the bitcoin transaction, which badly impacts the environment. The value of bitcoin shortfall to $32,000 from $57,000, and now it has started recovering, which is offering some hope of rising to the investors. Even the warning shot released by Chinese banks has also led to a partial effect on the value of bitcoins. Keep reading how you can earn money with bitcoins.
- There is no idea about investors of other countries, but one thing is confirmed that Indian investors are in shock after experiencing such volatile nature of bitcoins. As new and new users are investing in bitcoin, these are the main people who have not yet shared such a situation in the past. Previously, these investors have faced hindrances in making withdrawals and performing trading due to some uncertainty of regulations with the partnered banks.
- The domestic crypto exchange was not letting investors take an opportunity of the moment by buying the bitcoins and other digital currencies at the time of fall. They mentioned a reason behind this downfall which is because their platform is incapable of handling the huge volumes of trade.
- If we discuss the position of bitcoins for the last many years, there has been a huge rise in their value which is attracting a large number of investors on a regular basis. It is a good thing for digital currency, but these types of investors are spooked by the fall in the value of bitcoins. The downtime faced by the WazirX occurred when there was a 400% rise in the traffic of investors than a usual time. It is really very huge traffic that can simply crash any time of platform within a few seconds. This would not have occurred if another trading platform named CoinDCX was undergoing maintenance which shifted all investors to the WazirX platform.
- It has been noticed that many investors are considering it a buying opportunity, but one should not make that mistake. They should better research and go through all the aspects as that how much time bitcoin will take to become normal. The Zerodha CEO warned the users to invest a huge in the bitcoin at low prices because they may face a very serious loss which cannot be bearable by them. According to his point of view, one has to keep a diversified portfolio as a portfolio having a high concentration of the same digital currency will only raise the proportion of loss which is the worst thing for the investors.
So, the investors should have some patience and wait for the moment when everything will become normal rather than selling their valuable bitcoins.