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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

Why Bitcoin Price Remains Stable Before the Expected Hike

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The cryptocurrency rallied a few days back, but now, it has moved closer to 38.2% Fib level. Investors are enthusiastic that as it remains at this level for some time, and stabilize. The next move in Bitcoin price will take it to the 61.8% Fib level. This is when the hike in the price of the cryptocurrency will occur towards $4,200. However, after the surge in price, the upcoming weeks will see the Bitcoin falling swiftly to $3,000.

The truth is that if this move fails to occur, there may not be an improvement in the value of the digital currency. Also, this movement will enable the “bullish gartly pattern” we saw on the BTC/USD 4H chart to become a reality. Also, we are expecting that the Bitcoin price will decline the same way it has been recovering since early February.

Why this week’s closing price matters

Presently, Bitcoin price is still trading above what the intrinsic value is showing on larger time frames. However, we can see adequate room to accommodate short-term rallies. The price at which Bitcoin closes this week is very critical. It will be a clear indication as to how the digital currency will move in the coming weeks.

If Bitcoin closes at a price above $4,000, we are hopeful that the correction may come from early next week. On the other hand, any…

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Stanford Lecturer praises XRP over Bitcoin

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The world of cryptocurrencies continues to cause controversies even now, particularly when it comes to matters such as the superiority of one coin over others. According to recent reports, one student from Stanford University has stated that one of Stanford’s guest lecturers — Dr. Susan Athey — bashed the first and largest cryptocurrency, Bitcoin, while praising XRP.

Does guest lecturer go anti-Bitcoin?

In late February, Stanford’s student called Conner Brown came out publicly with a claim that Athey described Bitcoin’s network and protocol inaccurately, and that she also used the opportunity to make unfounded criticism. Athey, who also sits on Board of Directors at Ripple Labs — XRP’s parent company — supposedly also stated that XRP provides solutions to all issues mentioned in regards to Bitcoin.

According to Brown’s comments on the matter, the lecture in question took place over a month ago, and after attending it, he wrote an open letter to Standford, explaining the incident. In the letter, Brown claims that Athey inaccurately presented Bitcoin’s consensus protocol and overstated several issues, such as the threat of a 51% attack on the coins network, as well as Bitcoin’s mining centralization.

However, the main problem with the lecture, as Brown sees it, is the professor’s claims that XRP presents a solution to these problems.

The claims caused Dr. Athey to respond publicly via Twitter, stating…

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Bitcoin Chasing Green — First Positive Month Since July In Sight

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The crypto market has started seeing gains in mid-February, with Bitcoin (BTC) following the bullish trend as well. In fact, the largest coin was on its way of seeing the first positive month since July of the last year. Even though its price was struggling to permanently overcome the major resistance at $4,000, the coin kept trying, and as long as its price doesn’t drop below $3,414, this goal can still be achieved

The return of the bearish trend which briefly overtook the market on February 24th caused a lot of damage, although Bitcoin managed to remain above $3,800. Following the crash, BTC started seeing minor gains once again, indicating that the bears have withdrawn for now.

What does the future hold for BTC?

As mentioned, Bitcoin can only complete a positive month if its price remains above $3,500 until the end of February. At the time of writing, the price sits at $3,807 according to TradingView, with an increase of 0.58% in the last 24 hours. As things are right now, it is likely that BTC might succeed in doing this, as its price performed relatively well ever since January 11th, even though it remained between $3,300 and $3,700.

Chart courtesy of TradingView

The recently-emerging bullish trend took it beyond this, and while the price…

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