During the early part of 2021, cryptocurrency reached its highest ever value with Bitcoin valued at $63. Six months later the volatile cryptocurrency is demonstrating a slightly different story for the high hoped investors. Consequently, there have been several factors which have affected the slump in cryptocurrency value.
Aspects alluding to a volatile currency in 2021
Elon Musk and social media – Having gained lots of media attention about his investment into cryptocurrency via his Tesla car company in January 2021. Elon Musk was quick to draw attention once again in May when he announced that he would no longer accept bitcoin for car purchases. These outspoken changes communicated via social media have supplemented the volatile currency.
Chinese Influence – China has also sent a wave through the cryptocurrency landscape, when it announced during May of this year that it was outlawing cryptocurrencies including the mining and trading of crypto. With China providing 65% of Bitcoin’s hash rate according to University of Cambridge, this has the potential to create a large decrease in the value of crypto, according to a recent article by theverge.com.
Environmental Concerns – Earlier in June the media gave focus to campaigns about the environment and climate change during the annual G7 meeting whereby world leaders met to discuss topics of interest. Mindsets around energy use and improvements in energy use have attracted a lot of attention and in terms of cryptocurrency, there is a growing concern with regards to phenomenal amount of energy used in the process of crypto mining.
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