The impact of China's real estate giant, Evergrande, on the crypto market shows how cryptocurrencies are falling short of being ‘digital gold’.


While investors and traders are looking to keep liquidity on hand, miners have been raking up their reserves over the past 6.5 months — despite Bitcoin getting more difficult to mine.


Analysts peg that it’s not Bitcoin or other private cryptocurrencies at risk but stablecoins like Tether.


The crypto market is volatile, even the slightest bump in the status quo can send the price of the biggest cryptocurrencies — yes, including Bitcoin — through the roof or down in the dumps. So, it’s not surprising that something like China’s real estate giant running out of money to pay off its debt has the world of cryptocurrencies in a tizzy.


According to leading analysts, the downturn in the crypto market is nothing but investors rushing to liquidate their crypto funds for fear of China’s crisis disrupting the largest global financial balance. Moreover, professional traders are using the volatility to book profits by buying the dip and selling during recovery.


Bitcoin miners, on the other hand, are holding on to their funds for dear life — or HODLing — even as it gets more difficult to mine for the cryptocurrency. Moreover, it’s not private currencies under attack right now. If any cryptocurrency has something to worry about, it’s stablecoins like Tether.


Can you really call Bitcoin ‘digital gold’?


The crypto market has dipped below the $2 trillion market for the first time in two months with leading cryptocurrencies like Bitcoin, Ether, Cardano, Solana and others taking heavy hits.


The first downturn was brought on when El Salvador went live with its new Bitcoin Law but the latest crash is due to instability on the other side of the world — China. The country’s real estate giant, Evergrande, has racked up more than $300 billion and is unable to shell out enough for the interest payments.



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