Saturday, February 27, 2021

Index – Economy – In a single day, Hungary’s GDP disappeared from the crypto market


On Monday, the $ 1.7 trillion was scraped from below by the capitalization of the entire cryptocurrency market, which was only around $ 1,430 billion 24 hours later. This is a decrease of almost 15 percent,

about $ 260 billion minus a single day.

By comparison, Hungarian GDP in 2019 was $ 163.5 billion.

What is bitcoin?

Bitcoin is an open source digital currency from which a strictly defined amount can be mined. Its maximum inventory is 21 million, and by the time our article is published, there are just over 2.36 million extractable bitcoins. Bitcoin is not under the control of any central bank, the decentralized software system cannot be manipulated, it guarantees virtually free, immediate cash flow between users. On average, miners find a bitcoin every 10 minutes, based on which the last pieces of the 21 million bitcoins that represent the ceiling would be found in 2140. But based on the current upward trend in mining capacity, analysts put a date between 2040 and 2050 by which 99.9 percent of all bitcoin will be mined.

The price of bitcoin, the largest-capitalized cryptodevice, also plummeted on Monday, although last week, for the first time in its history, its capitalization exceeded $ 1 trillion and its share reached another record high of $ 58,000. And not only has bitcoin rallied huge in recent times, but smaller cryptocurrencies have also gone big – of course, bitcoin still accounts for a large portion of the crypto market, nearly two-thirds.

There are several reasons behind the big fall in the crypto market on Monday, and the Portfolio has bundled some of them.

  • U.S. Treasury Secretary Janet Yellen made negative statements about bitcoin: the former Fed president wrote that bitcoin is not a widely used transaction mechanism and cryptocurrency is an extremely inefficient way to execute transactions because the energy used to execute transactions is staggering. many.
  • In recent months, the proportion of highly leveraged open positions in the cryptocurrency market has risen sharply, with these positions being liquidated one after the other as exchange rates fall, and this effect has also accelerated the fall.
  • The cryptodevice exchange rate has risen sharply in recent weeks, making it “overshadowed” in all major time periods, on daily, weekly and monthly charts.

Bitcoin hovered around $ 47,000 around midnight on Tuesday morning, falling 15 percent in one day and more than 5 percent in a week, but still gaining nearly 44 percent over a one-month period.

The other cryptodevices are not doing well either: based on their market capitalization, the second largest Ethereum exchange rate was around 21 per cent minus 21 and the third Binance Coin was 23 per cent minus, as can be seen for similar declines for the other major cryptocurrencies.

(Cover image: Bitcoin coins. Photo: Ozan KOSE / AFP)





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