Disclaimer: This is a paid guest post
Bitcoin is now officially in a longest bear market ever. In Oct 2018 stock market dropped hastily. Bitcoin is a cryptocurrency form of digital money not handle by the central bank, an individual can do transactions or can send money user to user, peer to peer without a single administration. Some companies or apps help you to do safe Cryptocurrency Exchange through their platforms. A cryptocurrency exchange or digital exchange allows customers to do trading.
What Does Bear Market Mean and Since Long Why Bitcoin are in Bear Market?
Bear market means share prices continuously falling in the market. With recent update, Bitcoin has now officially been into a longest bear market. Bear market 1 says Bitcoin declined with 93% out of 165 days. Bear market 2 says Bitcoin decline with 86% out of 410 days. Bear market 3 says Bitcoin declined with 82% out of 411 days and more. This says that you should get out of the market immediately. But we as an investor don’t know what direction the market will move next it is unpredictable it can go high and can go in a bull market or can also go in a bear market. We can have a recession or expansion.
November 30, 2013 to February 21, 2017 the price hits at ATH of $1,101.9 and crashes after a massive exchange hack to $191.36 losing 83% of its value in the process.
As the share market is unpredictable Bitcoin market is also unpredictable. You never know it can grow or it can go down. Bitcoin before 10 years was highly in demand, for example, one guy purchased 2 pizzas at 10,000 BTC and now it has been vice versa he purchased 10,000 pizzas at 2 BTC.
Back in December 2017 when Bitcoin was valued $20,000, it was like it will hit the market, but a year later things looked quite different Bitcoin is now trading below $4,000 and it continuous towards downward side over the last year. Bitcoin is not the only cryptocurrency that had fall down last year but Ripple and Ethereum felled in the past year.
Reasons Why Bitcoin is in Bear Market
- One of the biggest problems with Bitcoin is its acceptance as a method of payment. Digital money is a great idea but what if no one uses it for purchases.
- Another major reason is transaction fees and transaction completion time.
- People are not adopting this as the payment method
- A transaction fee is much higher than the amount we transferred
As per the above graph, Bitcoin is growing it was down in 2017-18 and now since May 2019 it is growing. It was down because of many reasons like the number one problem is it is unscalable. As a global current Bitcoin is bound to fail. With every transaction, file gets bigger because every transaction in Bitcoin history is recorded and kept forever. It is working pretty well for now. It will probably rise again as long as the average users can download and hold. Eventually, it will completely fail.
Government Policy for Bitcoin in Denmark, Europe
The Central Bank has refused the use of Bitcoin within the borders of Denmark, but there are few startups still working on the exchange of Bitcoin. After Denmark announces its plan to completely go cashless in 2015, the trading of bitcoin has shown steady growth in demand for the cryptocurrency.
Currently, Bitcoin is not legal in online casinos as per government rules of Denmark. The financial services and government of Denmark have announced that the business dealing into bitcoin have to pay taxes. Bitcoin popularity is high in Denmark. The Danish Central Bank says that bitcoin is not protected by any national laws or guarantees, such as deposit guarantee. The Danish council in 2018 declared that losses on sales of bitcoin purchased as an investment are tax deductible and that profit is subject to income tax.
Scope of Bitcoin
According to the tax agency of Denmark trading of bitcoin will be taxed in Denmark. The bitcoin market is now going up since May 2019; initially, it was down in the year 2017-18 and was in a bear market since long. The bitcoin market is unpredictable it can go up if the number of people trading more for cryptocurrency and it can go down if a number of people trading less for cryptocurrency, it is like demand and supply chain.
Bitcoin cannot be used as cash in the market to purchase something and is not legal to use in Denmark market. If we are making a profit with the trading of bitcoin the profitable amount is taxable in Denmark.
There are many companies and startups in Denmark who has app and companies website to allow people to trade for cryptocurrency, they act as a mediator. Cryptocurrency exchange, monero bitcoin exchange, ripples exchange, etc. can be traded safely on this platform. These platforms do not charge for exchanging bitcoin or cryptocurrency, instant exchanges can be done. You can also track exchanges on their platforms.
Disclaimer: This is a paid guest post. This is primarily meant for educational purposes. It might contains forward looking statements, and might contain advertising or promotional material. Koinpost.com does not endorse nor support any product/service mentioned in the post. KoinPost.com is not responsible for or liable for any content, accuracy or quality within the guest post. Do your own research related to the promoted company or any of its affiliates or services mentioned in the guest post. Koinpost.com does not hold any responsibility for your damage or loss. The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. KoinPost does not hold any responsibility for your personal financial loss.