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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Reasons Why You Are Much Safer When Crypto Trading on Dexes
While many cryptocurrencies aim to bring the change to the world by bringing full decentralization, one aspect of the crypto space still remains mostly centralized, and that is the way they are exchanged. Most crypto exchanges are centralized companies, where traders and investors need to deposit their coins for safekeeping. This is a risky way to handle the funds, as exchanges remain susceptible to hacks and theft, as many realized recently, after the hack of the world’s largest exchange by trading volume, Binance.
During the hack, around 7,000 BTC (over $40 million) was taken, and sent to multiple wallets, never to be seen again — for now, at least. The hack also came as quite a shock, as Binance was known for its efficiency, security, and high levels of confidence. It also made people realize that their coins are not really theirs if they need to rely on third parties, such as exchanges, to keep them safe. As a result, many are now turning away from centralized exchanges, and are heading towards decentralized ones — also known as DEXes.
Here are some reasons why you might want to consider doing the same.
1. True ownership of your coins
The crypto community has a saying: “not your keys, not your coins.” The saying is now more relevant than ever, but it does not apply on DEXes. Decentralized exchanges…
Crypto Billionaire Predicts Massive Price Growth by 2021
Crypto prices are once again going up, and Bitcoin has just passed a major resistance level at $6,000. With a situation like that, it is not surprising that everyone in the crypto community is looking forward to the future, wondering what to expect in years to come. Many experts have already given their predictions, some more optimistic than others, but almost all bullish.
Crypto billionaire Mike Novogratz has always been very supportive of cryptocurrencies, and very bullish on Bitcoin. He recently stated that he sees the coins’ prices triple in the following 18 months, meaning that Bitcoin’s return to $20,000 might not be far away, according to him.
He noted that Bitcoin is back to $6,000 after its price hit as low as $3,100 only a few months ago. These days, Novogratz does not believe Bitcoin will return to such lows unless there is a devastating exchange hack or a major shift in regulations. Of course, there was a big hack that had the potential to damage the coin’s price, only days ago. The world’s largest crypto exchange by trading volume, Binance, saw a significant security breach which resulted in a theft of 7,000 BTC.
However, so far, the coin did not react negatively to this incident. While Novogratz believed that such an event would shatter the new confidence in BTC, it simply did not happen. However, he…
TokenRoll (TKR) Platform Will Take Online Casinos to the Next Level
Corporate executives are turning to blockchain technology more than ever in an attempt to revolutionize the business world. Although blockchain is still a relatively new concept, that hasn’t stopped more and more companies from jumping on the bandwagon. This hot new technology has quickly gained a reputation for providing greater transparency, enhanced security, improved traceability, increased efficiency, and low costs. One industry that could certainly benefit from decentralization is the online gambling market, specifically, online casinos. TokenRoll (TKR) has developed a platform that appears to offer a promising alternative to centralized casinos.
Problems with Centralized Casinos
The primary reason why blockchain technology is being implemented so quickly is because it solves a lot of the problems typically associated with the traditional business model. And online casinos are no different. It still needs to be said that centralized casinos have proven that there is a great demand for online gambling. The market is growing faster than anyone could have predicted, and future opportunities appear very promising and lucrative. But industries are continually evolving and this one is no different.
A few of the problems facing centralized casinos include the following:
- Little to no transparency
- Consumer lack of confidence
- Privacy concerns
- 48-72 hour wait time for withdrawals
These are four monumental issues that need to be addressed quickly given the global growth of the market. Casinos need to…
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