The rise of the world’s most renowned digital currency has been great news for many folks. However, the possible beginning of the dark days started a while ago as this virtual currency experienced a drop in value.
The drop comes not too long after Bitcoin experienced an all-time feat by crossing the $50000 mark. What exactly does this drop mean for the powers that be?
Affirming the Fact that Bitcoin Is a Speculative Transactional Option
The moment Bitcoin achieved the uncommon feats of reaching $50000, many tongues were wagging in its favor. Many sources claimed that this virtual currency is the new face of credible and safe asset deposition.
However, the sharp drop in value moments after it achieved its major feats is a wake-up call for many. For instance, it gives credence to political administrations that have been very strict and reserved towards the use of this digital currency for transactional purposes.
Examples of such national administrations are Nigeria and India. The powers that be in these nations are strongly opposed to the use of this electronic blockchain transactional method. One of the lawmakers in Nigeria was even reported to have said Bitcoin can be blamed for the current devaluation of the nation’s currency.
While this can pass as an unfounded theory, the position of this digital currency as a safe asset deposition platform is up for questioning.
Who Is Mostly Affected by the Bitcoin Situation?
For one, the sharp drop in the fiscal value of Bitcoin has cost the likes of Elon Musk very much. For one, he is no longer the world’s richest man considering the number of losses recorded as a result of the drop in the digital currency’s value.
Furthermore, the situation has also affected the share prices of electric vehicles in the United States and the world at large. So, Tesla’s fiscal position has been negatively affected as things are and this has, in turn, affected the rating of Elon Musk as the World’s richest man.