Just as it is not easy to understand the swings of the stock market, it is not easy to understand what happens in the world of cryptomonedas and their sudden increases and falls. However, the ideal is to understand this virtual market not as an isolated fact, but as a response to what is happening there, in the outside world.

The reality of fiduciary currencies, the instability of the world economy, even the political changes in some countries may be answers that explain the price collapse. But not only that, but also the behavior of the domestic market and its actors, those who buy and those who sell, can give answers. Also in the world of the criptomonedas there is an additional explanation: that comes from the same technology.

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Explanation 1: China

Most experts and media have pointed out that the main cause of the increase in cryptomoneda is the Chinese market. It is worth noting that the first big rise occurred on May 28 when it exceeded the $ 500 barrier. This was precisely a response to the fear of exchange control and the devaluation of the Chinese currency, the yuan. In fact, if you compare prices between the different exchanges, it can be seen that the Chinese always take the lead, with prices higher than the other exchange houses, which shows that they are the ones that are carrying the coin up.

Explanation 2: US and European Union

Many media have echoed two news that will occur on June 23 and that could affect investors and mobilize the various stock exchanges in the world. In the first place, the US Federal Reserve will announce its decision on whether to initiate its delayed interest rate hike, a rather hot topic among Americans. The other big issue is that this coming Wednesday the British will vote whether or not they continue within the European Union. This decision could destabilize the European economy in the medium term.
In fact, some classic assets have gained price for these two reasons, according to the Chilean daily La Tercera. For example, gold has seen its biggest rebound since four decades ago and on Friday saw its biggest rise since mid-March. Equally, people are taking refuge in two currencies: the Japanese yen, which has seen a 12.39% increase against the dollar and the Swiss franc with a 3.86% increase. Undoubtedly, even if the mainstream media do not report it, the world of cryptomonedas has also become, for many, the perfect space to safeguard its money from likely falls in both the dollar and the euro.



Explanation 3: Block Size

This is the explanation that takes more force among technologists: The price increase is nothing more than the response to an event to come: Increasing the size of the block to 2 MB. The code would be ready in July this year.

The problem that many have pointed out is that mining would see its rewards cut in half, from 25 bitcoins to 12.5 bitcoins per mine block. This decision to lower the profit of the miners (which is done every 4 years) is given to limit the number of bitcoins in the market, to avoid overproduction.

It is the answer given to CoinTelegraph Oleg Khovayko, Emercoin's main developer. He explains:

"I assume this is the effect of preparing mining for halving. Instead of fiduciary coins, such as dollars, euros, etc. , Where the issuance of money is unlimited, ie the central bank can print as many new bills as it wishes (and thus steal some community values ​​for its own pocket), Bitcoin's issuance is transparent and limited , And this makes it impossible to print unlimited new money. "

But the most certain thing is that the current phenomenon is but a reflection of these three explanations that in their whole are affecting to the market of the criptomonedas. As we write, at this moment the prices of these continue to the clouds.