Ransomware virus sweeps the world, Bitcoin price drops by nearly $100

Something happened to the price of Bitcoin yesterday that has not happened in a long time - a triple-digit drop in 24 hours.

According to the Coindesk Bitcoin Price Index (BPI), this kind of continuous one-day plunge has been quite rare in the past month. In the past period of time, due to the stimulation of various positive factors, the price of Bitcoin has been in the red most of the time.

The pause in price gains might be surprising if only because Bitcoin has been hitting new highs in recent trading sessions.

For example, analyst and trader Jacob Eliosoff shrugged off the magnitude of the drop, noting that bitcoin has gained significantly overall. The price of bitcoin is up more than $700 so far this year and is nearly $1,300 higher than this time last year.

Elisoff pointed out that data shows that Bitcoin's historical price corrections have come quickly.

He told CoinDesk:

“A natural question is, when the price correction comes, how low will it go? I don’t know, but based on history, it’s been big.”

Others predict that bitcoin prices will begin to stabilize after their intensive rally, and OTC trader Charlie Shrem agrees.

Shrem pointed to Bitcoin’s long-term value projections as evidence that the market is “not satisfied” with Bitcoin’s current price.

Expansion concerns

As Bitcoin’s momentum fades, some are concerned that past Bitcoin problems will reappear. For example, with Litecoin’s successful Segwit activation, the Bitcoin scaling debate could heat up again.

Angel investor and entrepreneur Vinny Lingham said:

“I think Bitcoin will reach $5,000 to $10,000 in a few years, but the premise is that we must end the debate on scaling. Short-term price surges will only delay us from solving the scaling problem.”

Lingham went on to say that any price surge would likely make Bitcoin’s limited throughput more apparent, pointing out that “Bitcoin’s block rewards keep going up.”

According to data from Bitnodes, the cost of clearing a transaction on the Bitcoin network is currently about 240 satoshis, which means that the average transaction fee is now higher than $1.

Charles Hayer, CEO of digital currency data site CryptoCompare, agreed with Lingham.

“Bitcoin is at its limit in terms of transaction capacity, and Litecoin is way ahead of Bitcoin in terms of forward thinking and governance.

While still speculative, these comments all point to potentially troubled waters ahead — and if Bitcoin can solve its scaling issues, perhaps it can still see big gains.

The reason for this plunge: Bitcoin was caught in the crossfire

Since last night, a global ransomware attack has made headlines in the global media. In April this year, the hacker group Shadow Brokers stole multiple Windows hacking tools from the US National Security Agency (NSA) and released them. This round of attacks was launched using "EternalBlue". The scale of this attack is unprecedented, affecting more than 90 countries around the world, including important countries such as China, the United States, Taiwan, and Russia. Many universities across China have been attacked by this ransomware, and students' computer files have been encrypted by the ransomware.

It is worth noting that the hackers demanded a ransom in Bitcoin, otherwise the files would be deleted. The computer systems of various hospitals in the UK suffered a large-scale cyber attack, which affected the operation of the hospitals, prevented patients from receiving treatment, and cancelled the originally planned surgeries.

The ransomware is usually spread through emails. Once the user clicks on the link or attachment in the email, the computer will be infected soon. The ransomware then encrypts the user's computer system, files and hard drive. To remove it, the user must pay the amount of Bitcoin they specify. According to previous reports, a British hospital was blackmailed for 300 Bitcoins (about 3 million RMB). Otherwise, the hacker threatens to destroy the computer data. Generally speaking, the victim has no choice but to pay the ransom.

This ransomware attack that swept the world has once again made Bitcoin the focus of attention. It is inevitable that some people will use Bitcoin to vent their anger, but Bitcoin is also a victim. However, this is not the first time that Bitcoin has been used by hackers to extort ransom. In the past, such incidents did not have a big impact on Bitcoin. However, this attack has affected the world, and we will continue to pay attention to its subsequent impact.