Bitcoin crash scares cryptocurrency investors

With the very high volatility in the field of digital assets, which continues to be present, the Bitcoin appeared to reverse this downward trend when investors, which in turn were shaken by the current financial market scenario, once again withdraw their assets. The factors that must explain this move are both internal and external.

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The return that came from Bitcoin mining, an activity carried out to validate transactions and network security, showed a very large drop in the last year. According to research conducted by Arcane Research, miner rewards, which used to be as high as $62 million per day, have dropped to around $18 million per day.

This absurd drop in the reward causes miners to leave the scene, which makes the network slower and, as a result, less secure. In a way, this does not directly influence the spot price of the cryptocurrency, but it can reduce liquidity and increase the volatility of quotations in the short term.

In addition, investors follow the news released about employment in the United States. And even more important, the data that point to a recession all over the world with the rising interest rates of North Americans, and the international scenario.

So that you can better understand, cryptocurrency mining, as mentioned earlier, is a way to validate network data and preserve it from fraud. However, it is through this activity that new crypto units are found on the market.

Mining also has the responsibility of keeping the entire blockchain running. The miner, in a sense, acts like a bank by checking Bitcoins and other types of coins in one account and checking whether the other could receive that amount of coins.

For those who don't know, blockchain is a system for tracking information that is sent or received over the internet. They are online codes that carry the data that is connected. This makes it possible to carry out cryptocurrency transactions. Furthermore, the network contains the entire history of the crypto market.

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