The decrease in the dominance index of bitcoin has been triggered by the rapid rise in popularity of cryptocurrencies such as Ethereum, Ripple, Bitcoin Cash, Cardano, along with digital tokens from initial coin offering (ICO) projects. "It's the same as sending an email as far as how it functions".
"And other bitcoin mining companies have said they are moving their operations elsewhere, where regulation is friendlier and still cheap energy".
To be clear, the incident was by no means a pump and dump scheme lanced by the software company. The digital currency was founded in 2009 by an unknown person or persons. Investors who think Bitcoin is expensive are switching to alternative cryptocurrencies. Only a day after that, however, Microsoft released a statement claiming that the announcement was inaccurate and "inadvertently posted", before promptly reinstating bitcoin as a payment method.
Relatively slow transaction times and high processing fees for bitcoin payments have led to many merchants rethinking their decisions to accept cryptocurrencies. The fresh surge in demand was evident when bitcoin futures began trading on Cboe Global Markets ( CBOE ) and CME Group ( CME ) exchanges, the former of which experienced website outages amid insane volume. Last month, gaming platform Steam also stopped accepting payments in bitcoin, citing "high fees" and "volatility".
Bitcoin price took a hit after the Chinese Government chose to target bitcoin mining amid concerns of power usage and South Korea proposed to ban local cryptocurrency exchanges.
The Seattle-based firm added the option for payments in Bitcoin around three years ago, in December 2014.
The popularity of bitcoin has also led to the launch of its futures contract on two of the largest United States exchanges-the Chicago Board Options Exchange (CBOE) and the Chicago Mercantile Exchange (CME)-in December of previous year.
Since the transaction fee for each transaction is measured in bitcoin itself and not a fixed fiat amount, the rapidly appreciating price of the cryptocurrency has also resulted in absurdly high costs.
Other popular and highly valued cryptocurrencies are also facing similar issues, with Ethereum being the only competitor to have fees in the double digits now.
New York Fed President William Dudley called bitcoin "not a stable source of value", and JPMorgan Chase (JPM) CEO Jamie Dimon has been one of the most vocal critics of bitcoin, though he recently walked back his comments about it being "a fraud".