Last month was a good month for Bitcoin. It went from 6,300 USD to 8,400 USD in only a few weeks. That’s a far cry from the 17,000 USD it reached last December, but it was still a good run. The problem is that it could be over.
Over the last two days, Bitcoin has fallen drastically. At the time of writing the price is at 7,422 USD which is well below the eight thousand psychological level. The currency still reaches daily highs beyond 8,000 every now and then, but the overall performance remains inconsistent if we go by data provided by Coinmarketcap.
The whole cryptocurrency market is still under a bearish trend, as it’s been for most of the current year, but the other coins have not had even the little bull run Bitcoin experienced. Ethereum, XRP and Bitcoin Cash have lost around 5% in the last few days.
Why is it going down?
Politicians all around the world are starting to notice cryptocurrencies at last, and that has affected prices. South Korea, for instance, is one of the most critical places in the world for digital assets because of the many exchanges it hosts and the high trading volume it has, especially for Bitcoin. The South Korean government is pondering whether to start taxing cryptocurrency exchanges which have enjoyed tax benefits until now.
Hong Seong-ki, who heads the Korean cryptocurrency response team South Services Commission said that “cryptocurrency transaction brokerage is not effective in generating added value. In his words,
“While crypto markets have seen rapid growth, such trading platforms don’t seem to be well-enough prepared in terms of security”
Mr. Seong-ki then added that,
“We’re trying to legislate the most urgent and important things first, aiming for money-laundering prevention and investor protection. The bill should be passed as soon as possible.”
Then there was the news about Ledger Connect. It’s a blockchain-based software that is going to start trials in nine of the world’s most prominent financial institutions (Barclays and Citigroup, for instance).
This software is backed up by IBM, whose reputation is still tremendous within in the technology industry, in partnership with CLS, a currency trading utility. While this services will be based in cryptocurrencies and blockchains, it takes demand away from Bitcoin. Another issue is power.
Mining Bitcoin blocks take a vast amount of electricity; current estimates seem to point at the fact that Bitcoin’s mining nodes are using as much power as the whole country of Ireland. Governments are noticing this as well and trying to manage it.
A spokesperson from the New York State Department of Public Service was quoted on this subject,
“These companies are using extraordinary amounts of electricity – typically thousands of times more electricity than an average residential customer would use. The sheer amount of electricity being used is leading to higher costs for customers in small communities because of a limited supply of low-cost hydropower.”
So Bitcoin is entering a mining energy crisis, and that can be a crucial point in its history. Other bad news for Bitcoin was that Martti “Sirius” Malmi, a computer programmer who is believed to have worked alongside the enigmatic (and still unknown) Bitcoin creator, Satoshi Nakamoto, is joining a team of developers that are producing a new digital asset that will be called Axe.
But despite those challenges, there’s been much good news as well for both Bitcoin, and many other cryptocurrencies so let’s review some of them as well. The US SEC (Securities and Exchange Commission) is analyzing the possibility to approve a new bitcoin exchange-traded fund.
This initiative came from VanEck and SolidX and was filed through the Chigaco Board of Exchange. A decision is expected to be announced this month, but SEC is not in a hurry so the final decision could take several months anyway.
In another subject, a new study has found that the cryptocurrency investment market, especially the piece that has to do with Bitcoin, still has a lot of room to grow.
It consisted of a survey done among a couple of thousand American investors. Only two percent said they own Bitcoin and not even one percent have it in their wishlist. Most of the investors surveyed expressed no interest at all in buying Bitcoin but a fourth of all said they are fascinated about it.
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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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Aluna.Social is a Compelling Social Platform for Crypto Traders and Investors
When one thinks about the social media landscape, the companies that first come to mind are most likely Facebook, Instagram, LinkedIn, and Snapchat. These platforms are a great way to stay connected with friends, families, and colleagues, especially when geographic distance is a factor. But, in addition to just chatting about life in general and sharing pictures, social media can be used to bridge the information gap that exists within the investment community.
Over the last decade, many trading offices have been established in large cities all over the world which allow solo traders and investors to pay a monthly fee in exchange for a workspace. The real benefit to trading in these offices is to participate in the free flow of trading ideas and information. Proprietary trading is one of the most challenging careers to be successful at and the exchange of ideas is almost required in order to succeed. Traders at hedge funds and investment banks work in teams so why shouldn’t remote traders?
While these trading offices are a great way to help bridge the information gap, Aluna.Social may provide an even better way, especially as it relates to cryptocurrency trading.
Aluna.Social, founded by Alvin Lee and Henrique Matias, is a multi-exchange social trading terminal for crypto traders and investors. The goal of the platform is to help newcomers shorten their learning curve,…
CoinFlip Scores Big with BRD Wallet Partnership
As the crypto markets move closer to mass adoption, one of the keys for future success will revolve around attracting as many market participants as possible. While many crypto users are extremely tech oriented, a lot of those on the sidelines are not. The cause of waiting on the sidelines could be due to a variety of reasons such as fear of the unknown, lack of knowledge, age, or a combination of all of the above. In order to entice new users to join the crypto revolution, crypto ATMs are rising up across the country. Of those, the largest and most influential crypto ATM company by a significant margin is CoinFlip.
In early October, CoinFlip announced on its Twitter that it had officially partnered with BRD Wallet to re-introduce their crypto ATM map. Now, BRD wallet users will be able to locate their nearest CoinFlip ATM and receive a 10% discount for both buys and sells. BRD brand awareness is growing quickly within the crypto community thanks to its innovative and entrepreneurial spirit. The team strongly believes in the value of financial freedom and independence, and want to empower people across the world by leveraging the possibilities that Bitcoin and other cryptocurrencies provide.
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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle. Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance. One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess. That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS. These projects have managed to find a foothold in the market and have a better chance than most of staying there. While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.
What is a Cryptocurrency CDP?
In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount. There are several examples of this in our day to day lives. Auto title loans from large companies like TitleMax are extremely popular with consumers. Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has. The consumer can continue using their car as long as debt payments are made.
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