A bleak future for the cryptocurrency market
Our current era is witnessing a huge and accelerating scientific and technological boom, and one of the products of the technological revolution is the so-called cryptocurrency.
Since the launch of cryptocurrencies, many investors thought that these currencies would bring them quick riches, but there is no doubt that this belief has been shaken and shaken in recent times. In fact, the idea of cryptocurrencies is not new today, but appeared a long time ago. Its idea is to use complex coding systems through which it encrypts data transfers to secure its exchange units, in addition to its ability to hide the identity of its dealers, which makes transactions, transfers, and money flows Anonymous in order to achieve the principle of privacy.
Its supporters seek to get rid of the usual cash transactions in favor of electronic transactions and payments.
Rather, the past period witnessed an increasing acceptance of cryptocurrencies, and their prices jumped to unimaginably large record levels.
And made its way in international financial dealings due to its acceptance by some countries. And due to the insane rise in the prices of some cryptocurrencies, it encouraged many investors to invest strongly in this type of currency, as the price of Bitcoin, for example, reached a record level of approximately $69,000 on November 9, 2021, to evaporate suddenly and with a sharp decline of $18.5,000. Approximately on November 9, 2022, meaning that it lost approximately 73% of its value.
Since the collapse of the “LUNA” currency in June 2022, there have been many setbacks on the cryptocurrency market. The popular cryptocurrency platform FTX witnessed a mysterious loss of nearly $662 million in cryptocurrency in just one day on November 11 of this year. Traders withdrew $6 billion from the platform in just 72 hours. This led to the company filing for bankruptcy, after the founder of the platform lost about 94% of his wealth in one day. One of the most important reasons is the company’s manipulation of investors’ money and using it for borrowing without any sufficient financial cover to pay off the customers’ withdrawals that poured into the company for fear of collapse.