Bitcoin plummets due to AI concerns! A beginner's guide

Cryptocurrency Information Bureau News Bitcoin falls below $9! A thorough, introductory guide to the behind-the-scenes story of a market shaken by AI fears. It could change your investment strategy. #Cryptocurrency #Bitcoin #AIEconomy

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👋 "Have you given up on Web3 News because it's too difficult? Today, I'll explain it in a super easy-to-understand way!"

Have you been watching the recent cryptocurrency news and wondering, "Has the price dropped again? What will happen in the end?" Today,It fell below $90,000.We'll explain market fluctuations, focusing on major news stories! We'll use familiar examples to explain how this applies to your daily life. First, we'll look at how concerns about AI are shaking up the stock market and spreading to virtual currencies.

Bitcoin crashes! AI fears hit the cryptocurrency market

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First of all, what has been inconvenient so far?

When you watch the news in the world of cryptocurrencies, you never stop hearing stories like "price has crashed again!" But why does this happen? First, let's look back at the inconveniences of the traditional financial system. For example, when you try to transfer money at a bank, the process can take several days and you have to pay high fees. If you compare this to a "congested highway," if everyone drives at the same time, it causes a huge traffic jam and delays arrivals. The cryptocurrency market is similar, and popular ones like Bitcoin in particular react sensitively to stock market movements. In this case, AI-related stocks (e.g. Broadcom)10%When the price of cryptocurrencies crashes, it causes a chain reaction that leads to a drop in prices of virtual currencies as well.

Furthermore, market instability is a major concern. For example, if investors try to sell at once, the price will fall sharply.Over $200 millionIn some cases, losses of up to 100,000 yen can occur. This is similar to when everyone rushes to buy a sale item at the supermarket at the same time, causing it to sell out. Traditional finance is controlled by central banks, but virtual currencies are decentralized, so these types of fluctuations become more intense. Behind the news, concerns about the AI ​​boom (will growth slow?) have shaken the stock market and spread to Bitcoin.

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Even elementary school students can understand! This evolution's key points

The crux of this news is the price fluctuations of Bitcoin, but let's compare this to a "shared notebook managed by everyone." Bitcoin uses a system called "proof of work," where everyone competes to calculate and protect the ledger. This makes it susceptible to being influenced by stock market movements. On the other hand, Ethereum uses "proof of stake," where everyone deposits and protects their money, so it is a little more stable. In the news, Ethereum$ 3,000 or moreand institutional investors$571.8 millionWhat's noteworthy is that they are also buying

Also, "unlocking" a token like CHEEL is like taking a new candy from storage. There's a risk that the supply will increase and the price will fall. Circle's USDC is a "digital currency that fixes the value of money" and aims for stability like traditional money, but there are concerns that falling interest rates could reduce revenue.

▼How will this change things?

The future standard! Usage scenarios

Let's imagine a story about how this news will affect our lives. First, from the investor's perspective: If you're an office worker and have invested a small amount in Bitcoin, you might think, "Oh no, I lost money!" when it drops this time. However, if institutions are buying it, like Ethereum, there's a chance for recovery in the long term. To put it in perspective, it's like large companies buying up stocks when they crash, which gives you a greater sense of security.

Next, for creators: If you're making a game using a token like CHEEL, even if the supply increases with unlocking, you might be able to stabilize the price by stacking (a system where you deposit money and receive rewards). It's like attracting customers with a sale even if an online shop has more stock. Circulating funds through DeFi (decentralized finance, like a bank created by everyone) will make it easier to create new works.

From the perspective of the average user: Using stablecoins like Circle's USDC makes international remittances cheaper and faster. Imagine sending a birthday gift to a friend in just a few seconds! Compared to traditional banksLow feesThat's right. Now your daily payments will be smooth.

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Check it out for yourself (DYOR)

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The future of Web3

Web3 will surely become more familiar in the future. Even with fluctuations like Bitcoin, the growth of Ethereum and the stability of stablecoins will change everyday finance. For example, international remittancesCompleted in secondsThis may be the case in the future. However, don't forget about regulatory changes and the risk of hacking. For added security, be sure to use two-factor authentication.

Summary: Start with a small amount!

This news clearly shows the turmoil in the cryptocurrency market. The drop in Bitcoin may be temporary, but we need to be wise in gathering information and respond accordingly. If you want to automate your information gathering,Make.comTry setting up your news feed with this. Start with a small amount and be DYOR!

👨‍💻 Author: SnowJon (WEB3/AI Practitioner/Investor)

He is a researcher who uses the knowledge he gained from the University of Tokyo's Blockchain Innovation course to practically disseminate information on WEB3 and AI technology.8 blog media, 9 YouTube channels, and over 10 social media accountsHe also personally invests in the fields of virtual currency and AI.
His motto is to combine academic knowledge and practical experience to translate "difficult technologies into something that anyone can use."
*AI was also used to write and compose this article, but the final technical checks and corrections were made by a human (the author).

Reference links and information sources

• Original news article/official website: Bitcoin Plunges Below $90K as AI Worries Drag Nasdaq, Crypto Stocks Down
• Related White Papers/Documentation: Ethereum Whitepaper
• Reference media articles: Bitcoin dips below $90,000 as AI worries dent risk appetite
• Additional reference: Crypto Markets Today: Bitcoin Retreats as Federal Reserve Decision Takes Center Stage