Why you do not need to wait for new records bitcoin in 2018? 5 reasons

0

2018 – not the best for bitcoin. Sluggish market demand and fluctuations in investors led to decrease of the asset price. Captainvalor Tuur Demeester sure that in 2018 there is nothing to wait for new records cryptocurrency.

Some investors and advisers, including Lee, believe that $5700 is the bottom of bitcoin, and now the asset is simply obliged to grow rapidly! Economist Turr Demeester hold opposite positions; for instance, there a clear side and a downward trend, and reversal is not expected.

The analyst said that the rapid rally, when bitcoin rose to $20 000 actually started in August of 2015 (when the asset was worth less than $200). The market needs time to review such a record.

Demeester called 5 reasons for limited growth of bitcoin:

  • Miners. Growing hash rate on the background of reducing the cost of the asset makes the mining process costly and unprofitable. Those who could not upgrade their hardware and find the cheapest electricity tariffs, retired. Bitcoin mining is concentrated in the hands of large mining farms that will soon be able to manipulate its course.
  • The decline in trading volume. Bitcoin still interested, but not so intense as before. Unlike last winter and spring, the trading volume decreased by 30%.
  • The lack of interest. American Institute of Gallup in the last quarter conducted a survey. It turned out that less than 0.5% of investors from the USA ready in the near future to invest in bitcoin. Google Analytics also confirm the decrease of people’s interest in cryptocurrency.
  • Bias of institutional investors. Funds not willing to invest large amounts, as dissatisfied with the conditions of storage and security of cryptocurrency.
  • The lack of ETF bitcoin. The economist believes that exchange traded funds (ETF) for bitcoin this year did not appear. When this happens, the assets will be available for retail investors. After the launch of ETF growth is to be expected the first cryptocurrency, because when there was a gold ETF, the price of precious metals increased by 350%!
  • Previously on this topic in the news:

    06.06.2018: “Bitcoin will not be a global currency” – CEO of Ripple

    CEO Ripple brad Garlinghouse in an interview with CNBC stated that bitcoin will not become a world currency. Previously, the Apple co-founder Steve Wozniak said he hopes that bitcoin is a true digital gold, and could claim the role of a global currency.

    Garlinghouse have your opinion on this subject: “Bitcoin will not be a panacea and will not solve all problems. XRP transaction a thousand times faster, bitcoin very slow. Faith in the future of one currency is maximalist ideology“. Ripple CEO added that in the cryptocurrency world will be a lot of winners. He has previously stated that the influence of bitcoin on the price of other digital currencies will weaken.

    How is the situation really

    It is true that bitcoin can not boast of a quick transaction. According to statistics, the average time of a transaction, BTC – 42 minutes, the same Ripple effect is 4 seconds. Although it is worth noting that the trading volume and capitalization of the first cryptocurrencies are much higher than XRP. However, the transaction rate of bitcoin is the result of using blockchain technology, which has not yet been scaled with the expectation of a larger number of users. Ripple uses a completely different technology. The company primarily positions itself as a payment service and actively cooperates with major financial institutions.

    If bitcoin and no longer the world currency, this role is not destined to Ripple. Bitcoin at least is a decentralized system, while 60% of tokens XRP belongs to the company-developer and don’t like it for many investors.

    News

    21.05.2018: 5 factors that affect the price of bitcoin

    The price of bitcoin has always had tremendous volatility. 2 months of 2017, the rate has increased by 223%, and just as easily fell by 60% in January-February 2018. What factors provoke the UPS and downs of the digital currency, and affect its value?

    5 factors affecting the price of bitcoin:

  • Supply and demand. Like any currency, bitcoin is affected by supply and demand. Mining bitcoins is similar to gold mining. Gold supplies are limited: to bring it to market, people need to get it. Also with hashing: the more people want to get bitcoin (and at the moment produced 17 million coins) – the higher its price.
  • Media. Fiat currency is less influenced by newsthan cryptocurrency. Positive news contributes to higher prices, the negative can derail the course. Stores that accept cryptocurrency as payment, companies that adopt the bitcoin system known investors who believe in digital assets – such news is going to benefit and enhance the credibility of virtual money. For example, the operator BitPay recently announced that it will be possible to pay taxes in Bitcoin.
  • The policy changes. Bitcoin is not controlled by the government and financial institutions – that’s why people paid attention to it. However, an official ban of the use of cryptocurrency (Pakistan, Kazakhstan, China, India and other countries) contribute to the depreciation.
  • State regulation. Decision regulating the use of digital currency can cause major fluctuations. For example, when Japan has recognized bitcoin as legal tender, the price of the asset began to grow rapidly. While the official means of payment bitcoin recognized a few, mostly the government equates it to the property.
  • Change the rules of the system. We will focus on hardforce – branches from the already existing cryptocurrency. There is a new currency, with similar characteristics, but working by different rules. Typically, the hard forks , the demand for bitcoin increases.
  • Experts believe that due to the fact that a reduced amount of bitcoins will continue to grow demand for them. Many predict that by the end of 2018, the first cryptocurrency would cost $20 000.

    News

    28.04.2018: the Three main directions of development of bitcoin

    Crypto enthusiast Nick Szabo has published in his Twitter the 3 main, in his opinion, the directions that are necessary to develop the field of cryptocurrencies in the near future.

    The most important development of cryptocurrencies over the next few years:

    • More secure storage (key management);
    • Decentralized exchanges;
    • Make the second level more friendly to the user, especially through automatic routing, while not sacrificing the minimization of trust

    He commented on these provisions as follows. In his opinion, the keys should be maintained throughout a person’s life and can be inherited, and needs to be found solutions for their wider use.

    Regarding the decentralization of exchanges, Nick Szabo, believes that Bitcoin is the most secure financial network on the planet. But peripheral companies are among the most unsafe.

    His words are confirmed by the recent events on the next breaking of the exchange and cryptocell.

    As regards the third item, first of all, he meant “add-on” Lightning Network in the bitcoin blockchain, which has undoubted advantages (fast transactions with minimal fees), but it requires technical expertise that deters potential users.

    Previously, Nick Sabor criticized by numerous experts and analysts who have a negative attitude towards cryptocurrencies not understanding their essence and hang different labels, like “biggest bubble” and the next Tulip mania.

    He is confident that by giving such a cliche, such experts oppose the new asset by inertia, because they are too lazy to understand the nuances of the functioning of the cryptocurrency market.

    News

    Leave A Reply

    Your email address will not be published.