Since its peak last weekend, Bitcoin and cryptocurrency have lost almost $400 billion as traders panic. Last week, the bitcoin price touched $60,000 per bitcoin. However, it has plummeted nearly 25%, making it $43,000. Even with this fall, bitcoin remains 50% more than it was at the start of 2021.
The cryptocurrency exchange Coinbase has now released its documents ahead of the initial public offering (IPO). The company fears that certain events could destabilize the price of bitcoin and ethereum, which could undermine its business.
Developments in quantum computing and regulation affect cryptocurrencies. Risk factors include disruptions and forks, the splits in the underlying network. The filing read, “The future development and growth of crypto are subject to a variety of factors that are difficult to predict and evaluate.”
The filing also claimed that the identification of Satoshi Nakamoto, the pseudonymous person or persons who developed bitcoin, is a potential risk. Nakamoto’s Bitcoin transfers also amounted to $30 billion. Fears are that the identification of Nakamoto can damage bitcoin’s decentralized nature and reputation.