JK Rowling: I don’t understand bitcoin. Please explain to me.
Bitcoin fell to $ 9,400, with bulls struggling to find support levels. Free cryptocurrency appears to be in freefall.
A new upside hope arises with the legendary writer, J.K. Rowling, author of Harry Potter, showing interest in Bitcoin.
Rowling did asked for explanation about BTC on Twitter only. The tweet already has more than 8,000 likes and has received a lot of attention from the crypto community.
“I don’t understand bitcoin. Please explain to me.”
Rowling received an interesting response from Vitalik Buterin, creator of Ethereum. In a small series of tweets, Buterin explained Bitcoin in simple terms to Rowling and said that people find it interesting because there is ‘no central authority that controls the network’.
“It is a digital currency. There are ~ 18 million units. It is not backed by anything, it is valuable because it is, like collectibles.
There is a computer network (in which anyone can participate) that maintains a decentralized global Excel spreadsheet of how many currencies each person has. ”
It is not clear whether Rowling is planning to buy Bitcoin or if she is simply interested in understanding how it works. Anyway, we know that this is not necessarily a bullish signal, as it could mean that there is a lot of FOMO accumulating.
This usually happens when Bitcoin is skyrocketing ($ 3,700 to $ 10,000) and ordinary people see it as a good investment, because it is thriving so fast. Unfortunately, this means that buyers are not very experienced and are only investing because they expect to make a lot of profit quickly. Eventually, Bitcoin starts to fall and most people start to panic because they have no experience in trading.
Bitcoin is already falling and the inexperienced are already panicking. Will this crash reduce Bitcoin to $ 8,000?