Bitcoin's dying, too many companies going bankrupt

Many businesses saw their growth fate and then their drop with Bitcoi's and some people lost their homes.

Bitcoin achieved its highest value a year ago, reaching over 15,000 pounds in several exchanges. Since then, the digital currency has dropped 80% and is estimated at less than 3,000 pounds.

Sky News has learned that hundreds of businesses have gone down with the value of Bitcoi, and there are mortgages and even marriages. Dreams of getting rich about some who spoke with Sky News were not particularly based on productivity notions.

Many of Bitcoin's investors recognized their opportunism and expected that the bubble would come out and the price would fall later, but they were expected to sell it.

Others confessed that they were blinded by fear of loss. Even if they enjoyed random conversations about how the future of the global exchange, of course, was with a decentralised currency, they just waited to get rich quickly.

In general, this has not happened.

Analyzing data from the Companies House and OpenCorporates, Sky News has found that at least 340 companies dealing with cryptovaluta or blocks were distributed or liquidated this year, compared to 139 in the preceding year.

More than 200 of these companies were injected with Companies House during 2017, when Bitcoin's value rose 1,500% to its peak in December.

Hugh Halford-Thompson, an early enthusiast of digital currency and founder of several blockchain companies, told Sky Ness that the influx of inexperienced investors during this period had disturbed him.

We had an ATM Bitcoin that we set up in Shoreditch in a place called Vape Lab, an electronic cigarette cafe. That was in 2013, when the price was initially about 250 and later reached 1,200 pounds,” shows it.

When the December round came, he went abroad and had no access to his funds to sell at the peak of the Bitcoin, which he describes as “a shame” But even then there were other people who wanted to enter the market.

There were a lot of people going in, and I think for the first time I felt there were a lot of people who really didn't understand what they were getting into. So every Uber driver had invested or thought about doing it. I had people who really asked me what the right currency was to introduce their children's university funds. That's not good. I didn't follow them, but I hope they didn't, Thompson claims.

For the first time, many normal people who did not understand investments were involved and lost their money. There were a lot of people trying to learn how they could get in four days before the big crash”, said Halford-Thompson.

Bitcoin lost half its maximum value by March 2018 and has continued to decline, a decline that affected many companies. The value of Bitcoin has since continued to sink to less than a fifth of its peak value and 60% of its 340 companies closed in 2018 cut off operations between June and November.

For the first time, the number of new registered companies is growing slower than the number of closed businesses. Speaking of owners of small businesses and investors, a particular tragedy was seen as typical.

The decline of bitumen also cost some of them to break their marriage because they had invested without the knowledge of the family.

One of those who broke up with the woman told Sky News that she had received loans to invest in cryptovaluta. He now says he would like never to hear about Bitcoi.

He and many other investors and businesses refused to be identified, explaining that they were afraid of making fun of friends and relatives.

During 2017, enthusiasts began to buy Bitco and other cryptovalus as customers became more and more interested in them.

When prices fell and consumers decreased, many businesses reduced losses and closed. Perhaps they did not get to the roof, but some left the wild journey with little extra money.

A small business owner says he was not ready to close the business. Despite his losses, he hoped his experience would benefit potential clients, even though he was not prepared to identify himself or his business.

Last December, the interest in Bitcoin seemed to be separate from any knowledge about technology supporting it except the name.

Stocks at a non-profit company Long Island Iced Tea rose up to 289% when it was renamed at Long Blockchain even though this company was later canceled by the Nasdaq Stock Exchange.

Of businesses that haven't closed, Sky News has found more than 50 of them changing names in Bitcoin, Blockchain or other digital currency.