CoinDesk explained that people around the world are competing with each other to mine bitcoin using powerful computers. They solve complex math problem and the winner receives a certain amount of bitcoin. The bitcoin miners will then write and confirm those transactions to the online blockchain ledger.
Currently, bitcoin is not yet widely accepted as a payment system despite its popularity and its high value. It went up to nearly $20,000 in December.
The value of the largest cryptocurrency remained high at $11,371.50, its closing price on Wednesday. However, market technicians believe that the rout is not yet over. They predicted that bitcoinwill fall to as low as $8,000.
Right now, investors are concerned about the increasing regulatory scrutiny around the world.
Blockchain entrepreneur warns day traders
In an interview with CNBC, Dan Novaes, a blockchain entrepreneur warned that people should not enter the bitcoin market for the first time with an aspiration to get rich quickly. He thinks that some sees the bitcoin crash as an opportunity to invest and make lots of money.
