3 Major Factors That Might Impact The Future of Bitcoin - Global Coin Report
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3 Major Factors That Might Impact The Future of Bitcoin

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For over a decade now, Bitcoin has been developing and constantly getting stronger. However, it is still far from being out of danger, and there are multiple factors that may impact the future of Bitcoin in a negative way.

Bitcoin, and cryptocurrencies in general, have made a serious move forward in the last two years, mostly due to the increase in awareness. There were a lot fewer people in the global crypto community before 2017, and even the authorities paid barely any attention to the trend. These days, however, there are talks of mass adoption and mainstream usage.

However, the bear market of 2018 has also made an impact. Digital currencies have lost a lot of their value, and many have started claiming that investing in them is a waste of money and time. However, experts and analysts disagree, as well as the large majority of investors.

Despite the fact that this is not the first time that Bitcoin has lost the most of its value, there are still a few aspects that might prove to be too damaging for it to survive.

1. Miners giving up

Even those who know nothing about Bitcoin apart from its name have likely heard of crypto mining. This is a process so tightly connected with most digital currencies that they cannot exist without it. Bitcoin mining exploded in 2013, and ever since then, the interest was only getting bigger with each passing year.  The enthusiasm was fueled by constantly growing prices, as well as by larger rewards at the time.

However, in mid-November, a hash war which followed BCH hard fork reduced Bitcoin’s own hashrate, which continued to drop for years, going as low as 40 EH/s, which is around 30% below its highest point. However, while it is easy to blame BCH for this, there are also additional causes for this. One such cause is a recent trend of giving up on mining, which has led to the closing of entire mining farms.

Not only that but the hydroelectric power of China — where the majority of Bitcoin is being mined — is getting scarcer, which only adds to the problem. While mining can be extremely beneficial, it is also very expensive. In the meanwhile, the price of electrical power goes up, while the value of rewards decreases due to bear market and market crashes.

2. Hacking attacks and scams

While Bitcoin prices remain either stagnant or on a decline, obtaining these coins for free is still more than worth it. This is why hacking attacks, scams, and theft still remains a very large threat, despite the bear market.  While hacking attacks on exchanges and wallets have been a part of the crypto world right from the start, their number seems to be increasing significantly.

This is damaging crypto reputation because cryptocurrencies claim that their biggest advantage over traditional financial systems lies in security. This security is constantly challenged through hacking attacks, and in a lot of cases, hackers end up stealing millions of dollars worth of crypto. While the bear market did leave an impact on the crypto popularity, hackers have a much greater influence.

3. The lack of investment money

One of the greatest factors that may negatively impact the future of Bitcoin is the lack of investments. Recently, investors around the world enjoyed numerous investment opportunities, which was made possible due to an entire decade of robust economic growth. Liquidity was high, money was in large supply, and it went everywhere — even into the still young crypto space.

These days, however, the situation is beginning to calm, and even go in the opposite direction. There is less money around, and investors are not as careless with it as they used to be. If the situation continues, the ecosystem may end up drying up, which might damage Bitcoin permanently, and prevent mass adoption from ever becoming a reality.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Bitcoin

As Global Tensions Grow, Bitcoin Price May Go Higher

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BTC Surged Again as A Safe Haven Asset During Global Tensions

  • India – China Border Conflict

After weeks of squabbling and brawling along their long-disputed border, hundreds of Indian and Chinese soldiers engaged in a deadly clash Monday in a river valley that’s part of the region of Ladakh last week. Troops had massed on both sides of the border in recent months in the northern India region of Ladakh and the southwestern Chinese region of Aksai Chin, causing global concerns of a potential escalation between the two.

  • North and South Korea Clash

Last Tuesday, North Korea destroyed the liaison office it jointly operates with South Korea in the city of Kaesong, just north of the demilitarized zone that separates the two countries. 

North Korea also said it would send troops to now-shuttered joint cooperation sites on its territory, reinstall guard posts and resume military drills at front-line areas in a violation of separate 2018 deals with South Korea. Jeong said South Korea will take “immediate, swift and corresponding” steps to any North Korean provocation.

The tensions grown in Asia and the potential “second wave” of coronavirus in the United States may add more difficulties to the global economic recovery. Thus, Bitcoin, as a safe haven asset, attracts more investors to…

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CoinFlip Continues to Dominate the U.S. Cryptocurrency ATM Market

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Although cryptocurrency has brought in a lot of traders seeking the dream of overnight wealth, cryptocurrency is a lot more than just striking it rich.  Cryptocurrency is about creating a new market with companies that are building cutting edge technology in an effort to continue elevating our way of life.  As the crypto market continues to expand, several companies are involved in creating ways for more people to participate.  One such company that appears to be making all the right moves is CoinFlip.

CoinFlip is the world’s leading cryptocurrency ATM operator that currently allows users to buy and sell 10 different cryptocurrencies including BTC, ETH, LTC, DASH, TRX, KMD, LINK, BNB, XLM, and USDC.  Due to the company’s quick growth, CoinFlip has quickly gained a reputation of being the place to go for all crypto ATM transactions.  In addition to its massive geographic coverage, there are four advantages that CoinFlip currently offers over its competitors:

  • Lowest fees of any cryptocurrency ATM in the world
  • Lightning-fast transactions that are typically completed between 10 and 30 minutes
  • Extremely easy customer verification
  • 24/7 customer support through phone, text, and chat

Given the global pandemic currently facing us, many companies have been struggling just to survive.  CoinFlip, on the other hand, is not only surviving but thriving.  The company has had an exciting few months and has even bigger plans…

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Cryptocurrency Fraud is Evolving; Bitcoin ATMs Mitigate Risk 

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Cryptocurrency Fraud is Evolving
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In one of the more overlooked aspects of the crypto ecosystem, it appears that the bulk of illicit activities are shifting from hacks and thefts to cryptocurrency fraud and scams.

CipherTrace, the crypto-surveillance, and analysis firm released a report at the end of Q4 2019 that revealed hacks and thefts had decreased by 66 percent in 2019 while fraud and misappropriation of funds surged by 533 percent. And beneath the COVID-19 hysteria of 2020, hacks in the crypto sector have been eerily isolated. 

Outside of a few exploited flaws in P2P exchanges and DeFi flash loan vulnerabilities, the headline-grabbing hacks of exchanges for hundreds of millions of dollars have been absent so far this year. Is the industry due for another massive hack, or are stringent KYC/AML processes, regulatory crackdowns, better security practices, and blockchain surveillance working? 

KYC/AML Improvements Are Reducing the Appeal of Crypto Exchange Laundering 

2020 is far removed from the no-KYC wild west days of the early-mid 2010s where anonymous altcoin casinos preponderated and the Dark Underbelly of Cryptocurrency Markets thrived. 

Today, bitcoin and the crypto ecosystem is becoming institutionalized with a surfeit of derivatives (e.g., options, futures, perp swaps, etc.) available on…

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