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Why is Bitcoin price going down again?

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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.

Image courtesy of Maxpixel.net

Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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ICTE May Bring About Sweeping Changes for Cryptocurrency Exchanges

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Cryptocurrency has taken the world by storm during the last few years. An entirely new financial market was created almost overnight which has captured the imagination of all its participants. Cryptocurrency is even starting to attract institutional money from investment banks, hedge funds, and other proprietary trading firms. Despite the rapid growth, traders remain extremely frustrated by having to deal with the fragmented nature of centralized crypto exchanges.

A Change is Needed

When cryptocurrency first began, there weren’t many participants and the trading volume was relatively insignificant. But, over time, that has radically changed. Some tokens now have a capitalization in the billions and are being traded 24-7 by institutions all over the world. Despite the volume, significant problems exist with the current way that exchanges work. Some of those problems include the following:

  • Constant fear of hackers
  • Exchange manipulation
  • Fragmented liquidity
  • Risk of identity theft

One of the biggest issues regarding centralized exchanges is the risk of being hacked. These hack stories seem to always be circulating around the internet. While experienced traders may have the tools to avoid becoming a victim, potential new traders have zero interest in dealing with this. And it’s not just the small exchanges that are at risk. Even large exchanges, such as Mt. Gox and Binance, are subject to being hacked.

Another huge risk is having to deal with…

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SonicX and Dash Could Challenge Facebook’s Libra for Global Payments Market Share

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When Satoshi Nakamoto unveiled Bitcoin to the world, the dream was always for Bitcoin to serve as a new universal currency.  It would be free from the bureaucracy of governments.  And free from the tyranny of the old-world financial cartels.  Although the dream hasn’t yet materialized, it comes closer and closer with each passing day.

One of the biggest roadblocks for Bitcoin has been scalability.  At a speed of approximately 7 transactions per second, Bitcoin lags behind other cryptocurrencies like Ripple and global payment processors like Visa.  Many expect the lightning network to have a positive impact on Bitcoin’s TPS but until that comes to fruition, mass adoption will likely need another significant development.

Libra Currency Announcement

One development that could help pave the way toward mass adoption is the launch of the Libra currency.  Libra is expected to go live during the first half of 2020 according to Facebook’s June announcement.  According to Facebook, Libra will make sending money online cheaper and faster.  It will also have a hand in improving access to financial services, especially for the unbanked.  Given Facebook’s global reach, including many third world countries, providing financial access to the unbanked could provide a huge spark to global economies.  Additionally, it could provide the growth spark that cryptocurrency needs.

Facebook’s most popular messenger, WhatsApp, has approximately 1.5 billion monthly users.  This application is…

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