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Mining City Reviews Why is Crypto Crashing?

Unlike the stock market, which is relatively stable, cryptocurrency can fall heavily when it does decide to crash. This is because it is decentralized. While decentralization can be good for many reasons, it also provides a lot of danger, and the crypto market is one of those areas that can be dangerous. 

Unfortunately, that is what we are seeing now in the market. Some investors are selling equities and refusing to make certain asset purchases, which is affecting demand for all alternative assets, including cryptocurrency.

Keep reading below to learn more about the factors that influence the cryptocurrency market, and why it is crashing now. 

What Factors Influence the Crypto Market?

Unfortunately, cryptocurrency values are very volatile. Since they aren’t centralized, the fluctuations can impact the market heavily. 

Seven main factors influence the cryptocurrency market. These are:

  1. Node Count. The node count is how many wallets that are currently being used are on the same network. This shows you how powerful the community is, and how strong and decentralized the whole network is. 
  2. Count of Production. It costs a lot of money to mine cryptocurrency. Not only do the computers have to be able to handle the workload, but they also have to use a lot of electricity. The harder it is to mine a currency, the less the currency might be worth. Some currencies are working to make the mining process easier by allowing you to play games or use browser extensions instead of mining crypto using complicated math problems. 
  3. Amount of Exchanges You Use. While this doesn’t necessarily affect the crypto market, there is a fee that occurs with every crypto exchange that you use. If using one cryptocurrency involves going through multiple exchanges, then it can lower the worth of the currency as people are less likely to buy it, and it is more of a hassle and higher fees to get to. 
  4. Competition. There are a lot of currencies on the market. From small little celebrity tokens to major ones like Bitcoin. The competition, depending on how popular it becomes, can have a lot of influence on other currencies as people switch from using one to another. 
  5. Regulations by Government. Since cryptocurrency is such a new situation, a lot of government agencies are unsure of how to deal with this. Some places, like China, have outright banned the mining of cryptocurrency, though trading and selling are still possible. Other places, like Japan, are starting to use them more so that you can even buy and sell regular goods with cryptocurrency. 
  6. Scarcity. Though it is an online, digital currency, it is also theoretically scarce and there is a limited supply. The more coins already in circulation, the more expensive the cost is. This is why it can be a good investment to purchase some cryptocurrencies early before they start to increase in price due to scarcity.  
  7. Social Media/Influencers. Since cryptocurrency raises n value based on the number of investors and the demand, having the social media hype behind a currency is important. However, depending on the news released, you can have social media be a good or a bad thing. For example, if a big company backs out from using a certain cryptocurrency, it can scare people and cause them to back out. 

Is the Crypto Market Crashing? 

Yes, the crypto market is heavily crashing right now, and it is due to a lot of the factors above. The reason it started was due to the massive selling of the currency by inventors. This, in turn, scared a lot of those using the currency, who are in turn selling theirs as well. 

Also, these same investors are currently avoiding making any risky purchases, which can harm the market as well. Specifically, Elon Musk is one of these investors that has caused a huge fear in the general population. 

The fear is so great that some lending services such as Celsius are pausing withdrawals for their customers. 

As of June, $2 Trillion in the market has dropped. In the last few weeks alone, Bitcoin has dropped over 7%. However, it isn’t just crypto markets crashing. In this last year, most of the stock market has faced a serious downturn. This is because interest rates are increasing and the money supplies for the stock are getting narrower. 

Will Crypto Bounce Back?

Currently, it is unknown if crypto will bounce back. With only a decade or so of history, and nothing with a crash this high during that time, it can be difficult to determine how the decentralized market will handle this situation. 

A lot of experts are assuming that many small cryptocurrencies will not bounce back from this. If anyone were to recover, it would likely be the major cryptocurrencies such as Bitcoin and Ethereum. Some say that over 90% of all cryptocurrencies out on the market right now will likely not survive the crash. 

Right now, even the major ones are hurting and are currently in the red for their stock market profits. 

Can Crypto Drop To Zero?

While crypto can drop to zero, and many smaller currencies might experience this, it is very unlikely that major ones will drop that low. 

It is also impossible for the values to drop below zero. Even if you don’t make money from selling the crypto, or lose out as you are selling for more than you bought it for, you will never have to pay for someone to purchase the cryptocurrency from you.

What is Mining City? 

Mining City is a platform that provides mining plans, giving users access to hash power and mining rewards. The idea for the platform was conceived in October 2019 by Greg Rogowski, the brand owner of Mining City and the CEO of Prophetek.  

Prophetek is the company behind the Mining City platform. It is based in Cyprus, a country with clearer cryptocurrency regulations than many other European countries.  

A technological process, combining low electricity costs with storage and miner improvements, known as “Smart Mining,” became an effective way to obtain BTC.

Is Mining City Legit?

Mining City provides real hash power for users. Mining City also leaves banned markets and takes a compliant approach to new laws and regulations, adjusting to global markets.

There have been many widespread scams and attempts to defraud cryptocurrency customers over the past several years, which has prompted increased regulation and efforts by responsible companies to deter fraudulent activities and scams.  

The cryptocurrency and crypto mining industries are new and gradually become more and more regulated markets. As new regulations go into effect, reputable market players, like Mining City adjust.  This may mean leaving markets where crypto-related activities face new bans. That may also mean having to adjust products or services to stay in line with new laws.  

You can follow Mining City’s official social media portals on Facebook, Instagram, Telegram, YouTube and Twitter to observe what Mining City undertakes to adjust to new regulations and requirements and to give Mining City your support in their efforts to become fully compliant.


Cryptocurrency is very variable and volatile, thanks to the decentralization of the market. This helps to keep people’s information safe, reduce government influence, and allow people to step away from banks. 

However, when people get scared, the market can drop hard. This is what we are seeing now, and people are unsure of how long this crash will continue or how it will affect the crypto market long term. 

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