Bitcoin resumes its bloodbath. The crash in cryptocurrencies resumed once again. Bitcoin even fell below $10,000 once again. This is a fall of more than 50% from the peak. The latest trigger seems to be the allegations against the cryptocurrency tether. Investors are worried that Tether is actually not backed by US dollar as was claimed by the developers of the cryptocurrency.
Tether, Bitfinex is false
More and more users are actually coming out against this cryptocurrency. If indeed, such a large cryptocurrency which is backed by the founder of a cryptocurrency exchange as well, Bitfinex is false, many investors would actually lose confidence in the cryptocurrency space. This would again lead to problems in the cryptocurrency space. This is one of the main reasons why the confidence in cryptocurrencies is consistently decreasing as well. Most of the investors do not know what they should believe in the cryptocurrency space and what they should not believe. Even when the founders of some of the most reputed cryptocurrencies are caught lying to the investors, they are actually not sure whom to believe as well.
New investors are not coming up in such large quantities
Moreover, after the recent astronomical rise in Bitcoin prices, the flow of new money in into Bitcoin is not able to sustain the prices of Bitcoin. The truth is that according to an estimate at least $18 million need to flow into Bitcoin quickly in order to stabilize the prize as well. The problem is that the new investors are not coming up in such large quantities. Moreover, when you’re looking into tether you would realize that the amount of US dollars which they claim to have as a backing for the cryptocurrency is not possible to have without any kind of notice. That is why, either they need to create a third-party audit in order to assure the investors or they would actually lose the interest and the confidence of the investors.
Investors would not trust the other cryptocurrencies as well
The problem is that if that happens, most of the investors would not trust the other cryptocurrencies as well. Owing to this very reason, it would be a losing situation for not just that particular cryptocurrency but the other cryptocurrencies which are legit as well. This is one of the main reasons why investors are not holding the cryptocurrencies as it would lead to another huge crash as well. This is leading to the price of not only Bitcoins to fall but the other cryptocurrencies like Ethereum as well as ripple are consistently falling as well.