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#cryptocrash: Here Are Reasons Cryptocurrency Is Crashing

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Crypto Crash: Many Won't Survive, EU Regulator Warns

#cryptocrash has become the hashtag for trending information about the dip of cryptocurrency.

 

…..In this report, you will also read about: …Reasons for the #cryptocrash

 

Meanwhile, specifically on Twitter, tweeps are even tweeting funny memes and jokes about reasons cryptocurrency is crashing.

Also, note that the value of cryptocurrencies has been plummeting in recent times, leading to the frequent use of the hashtag, #cryptocrash.

It went from an all-time high of above $40,000 to a disastrously all-time low of below $20,000.

With this step, almost vertical dip, many investors lost a huge chunk of their investment values.

ALSO READ: Scammers Hack Binance, Steal $100m Worth Of Crypto

READ ALSO: How To Register Your Crypto Business In Nigeria Under SEC’s Rules

Consequently, most people sold their assets and others took the opportunity to buy more.

Among the causes of the #cryptocrash is the collapse of some crypto exchanges.

But below are funny memes and jokes Tweeps are making about #Cryptocrash and why it is trending:

Meanwhile, here are the reasons for the #cryptocrash:

1. Small Miners Liquidating As Bitcoin Mining Is Too Expensive:

Mining Bitcoin has become too expensive. This is because, mining Bitcoin has become very competitive.

Many investors are investing in cutting edge mining hardware technology to mine and they are also discovering new blocks.

This high competition has led to miners adopting faster and more efficient hardware for mining, leading to further stiff competition.

Meanwhile, with this competition, small miners who cannot cope are closing shops. They often liquidate their BTC hence, causing #Cryptocrash.

So, miners shutting down operations due to increased costs of mining leads to the #cryptocrash.

2. Bitcoin ETF Denial Disturbs Investors:

You may not be familiar with Bitcoin ETF. But a quick explanation will suffice.

ETF is an investment tool and stands for exchange-traded fund.

ETFs allow investors to purchase shares in a group of assets like stocks or bonds through a single security—it makes diversification easy.

One can use ETF to invest in stock and cryptocurrency markets.

You can also use ETF to protect investments against cryptocurrency volatility.

However, the denial of Bitcoin ETF by some governments further leads to #cryptocrash.

3: Scammers And Hackers Making Investment in Crypto scary:

Before 2022, the blockchain was touted as unhackable. However, we have seen many cases where even crypto exchanges have been hacked by fraudsters.

The frequent hacking and scams involving crypto are further scaring investors away from investing in crypto.

Scammers are making it harder for people to trust that they’re investing in legitimate cryptocurrency projects.

Scammers are taking advantage of the anonymity and privacy features built into cryptocurrencies to steal money from investors.

These frequent scams are making investors to shy away from investing in crypto, leading to #cryptocrash.

 

Anthony Chinonso Ogbonna is the editor of Techuncode media. He is a seasoned journalist whose stint cuts across broadcast, print and, especially, the online media. A graduate of Mass Communication from the University of Nigeria, Nsukka (UNN), Anthony holds a Masters Degree in Multimedia Journalism. He aligns his belief with those of world tech communities, holding tenaciously that the world is solely driven and can only be best with tech. Furthermore, Anthony believes that technology is simple, fun and is not what one, especially Africans, should be scared of, hence, his passion for telling compelling stories about tech in ways relatable to the ordinary user. He has his hobbies in reading and designing (new hobby though.)

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