{"id":49363,"date":"2021-01-22T17:55:46","date_gmt":"2021-01-22T21:55:46","guid":{"rendered":"http:\/\/stateofthenation.co\/?p=49363"},"modified":"2021-01-22T17:55:46","modified_gmt":"2021-01-22T21:55:46","slug":"this-is-why-bitcoin-can-never-ever-be-used-as-universal-currency","status":"publish","type":"post","link":"http:\/\/stateofthenation.co\/?p=49363","title":{"rendered":"This is why Bitcoin can never EVER be used as universal currency!"},"content":{"rendered":"

COIN CONUNDRUM Fears Bitcoin \u2018whales\u2019 could trigger crash with just 2,500 people controlling nearly HALF of market<\/h1>\n

Sun reporter<\/p>\n

BITCOIN ‘whales’ who hold staggering sums of the cryptocurrency could crash the market, experts have warned.<\/strong><\/p>\n

It comes as Bitcoin soars to record sums, currently valued at \u00a323,000 ($32,000) per coin.<\/p>\n

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Bitcoin is a private and potentially highly profitable way to trade<\/span>Credit: Unsplash<\/span><\/div>\n<\/div>\n<\/figure>\n
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And Bitcoin reached a record high of $41,973 on January 8 this year.<\/p>\n

In December 2018, a single coin was worth $3,300, and in November 2013, one coin was worth as little as $350.<\/p>\n

This phenomenal rise has made multimillionaires and billionaires of some investors.<\/p>\n

Now experts have told\u00a0The Telegraph<\/a>\u00a0how there are fears that Bitcoin “whales” hold too much sway over the market.<\/p>\n

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Some investors have become multimillionaires in just a few years<\/span>Credit: Unsplash<\/span><\/figcaption><\/figure>\n

“The Bitcoin trading market is very thin,” crypto-sceptic David Gerard said, speaking to The Telegraph.<\/p>\n

“There is not a lot of available volume to trade.<\/p>\n

“The big players can easily move the price.<\/p>\n

“And there are all kinds of trading shenanigans, which would not happen on a regulated market.”<\/p>\n

It’s believed that around 2,500 “whales” control roughly 40% of the Bitcoin market.<\/p>\n

Experts worry that single trades can make huge changes to the price of Bitcoin \u2013 swamping any movements by smaller investors.<\/p>\n

Gerard, who wrote\u00a0Attack of the 50 Foot Blockchain,<\/em>\u00a0added: “These big players have lots of Bitcoin and are very active in the market. Any one of them could crash it.”<\/p>\n

Some trades can have staggering values.<\/p>\n

It’s common to see dozens of single trades each worth tens of millions in a single day.<\/p>\n

And Bitcoin’s price is highly volatile, having dropped by around $10,000 from its high of $42,000 earlier this month.<\/p>\n

However, Bitcoin supporters argue that the coin has long-term value \u2013 evidenced by its enormous rise over the past decade.<\/p>\n

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What is Bitcoin?<\/h3>\n<\/div>\n
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BITCOIN got you baffled? Here’s what you need to know:<\/p>\n

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