Krypto Klimate
Reality Of
Crypto
An educational website informing you about the political and environmental effects of decentralisation and blockchain technology covering topics such as cryptocurrencies, Proof of work and Stake algorithms and the politics of cryptocurrencies and what the future holds.
Crypto?
Cryptocurrency is a digital or virtual currency that uses cryptography for secure financial transactions. It is decentralized, meaning it is not controlled by any government or financial institution. Bitcoin, the first and most well-known cryptocurrency, was created in 2009. There are now thousands of different cryptocurrencies, all with their own unique features and uses.
How it Works?
Cryptocurrencies have no central authority or government body to dictate its price. The value of crypto is made by people agreeing that it is a valuable asset thus driving prices up or down depending on demand and trust. Cryptocurrency such as Bitcoin have a maximum supply causing a big supply & demand trend that is highly volatile. The worldwide trust in blockchain technology and movement is the reason for Bitcoins general success. What if there was a way to discredit and hack alternate coins built on Bitcoins technology? Will trust still be there for investors?
Value of Bitcoin
Cryptocurrencies have no central authority or government body to dictate its price. The value of crypto is made by people agreeing that it is a valuable asset thus driving prices up or down depending on demand and trust. Cryptocurrency such as Bitcoin have a maximum supply causing a big supply & demand trend that is highly volatile. The worldwide trust in blockchain technology and movement is the reason for Bitcoins general success.
What if there was a way to discredit and hack alternate coins built on Bitcoins technology?
Will trust still be there for investors?
Downfall?
The trust of Bitcoin and crypto is in its technology of encryption. FTX however was a test on how investors would react when the trust is misplaced. In July 2022, you can see from the data visualisation above that there was a dip in the price of Bitcoin caused by a financial scandal of a crypto trading platform FTX and its own cryptocurrency FTX Coin. The CEO of FTX deliberately misappropriated customer deposits to cover up personal expenses and debts.
During the occurrence, CEO CZ Zhao of Binance the worlds biggest crypto exchange decided to sell all their FTX Tokens which is around 5% of total marketshare valued at ($580M USD) causing the market to crash and FTX exchange to file for brankruptcy this in turn caused many cryptocurrency coins to plummet in value.