5 reasons why Bitcoin can collapse

Baku. 23 January. REPORT.AZ/ The world's most popular digital currency, bitcoin is now sold at $ 10,500 after reaching $ 20,000 at the end of last year (50% cheaper).

Report informs citing the Russian media, if at that time the share of bitcoin in the capitalization of the aggregate credit market was 85%, and now it fell to 34%.

Analysts are not so hopeful about the future of bitcoin. Here are five reasons why:

1) Low speed transactions - Decrease in the number of transactions made within 1 second led to the creation of 2 units, such as Bitcoin cash and Bitcoin gold.

2) High commission fee - up to beginning of 2017, every transaction in bitcoin costed not more than $ 1. At present, this figure has reached $ 25 because of the increase in demand. For comparison, in Ripple the commission is less than $ 0.01.

3) Toughening of normative regulation - Last year there was a need to regulate the price of "bitcoin", which increased 20 times last year. Countries such as South Korea and India have said they will apply strict bans on it. The Chinese government also joined these calls. Analysts believe, in the background of desire to control the crypto-currency market by central banks it can lead to a sharp decline of prices.

4) Problems for Miners - Chinese government has announced that it will fight with the miners. Notably, 60% of world's crypto currency miners are in this country. If such a prohibition applies, chaos may occur in the crypto currency market.

5) Anonymity loss - Previously, the attractive feature of bitcoin was its anonymity, while tax authorities and regulatory authorities are now pushing traders and demanding all information from them. This can significantly reduce the demand for bitcoin. Bitcoin can give leadership to Ripple, Dash and NEM.