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Two Major Catalysts Will Push Bitcoin Prices Up
October 17, 2018

You may found that Bitcoin prices have been at historic lows throughout 2018 if you have checked the bitcoin history graph, with current resistance at $10,000, $8,000 and $7,000. Regardless of what is the low point of Bitcoin, its stability at $6,000 is optimistic. In addition, there are two major catalysts may significantly boost bitcoin prices in the next two months.


1.Strengthening of cryptocurrency infrastructure

At present, the central banks of the United Kingdom, Singapore and other countries exploring the issue of encrypted digital currency. Under the circumstances of accelerated exploration, the construction of critical infrastructure is still the focus and difficulty of the issue of encrypted digital currency. Therefore, countries are working hard to strengthen the construction of cryptocurrency infrastructure in 2018.


In early 2018, two Russian states were prepared to accept cryptocurrency mining infrastructure to help the industry become an industry; in August, the German stock exchange launched an “end-to-end” cryptocurrency infrastructure, the global Bitcoin ATM machine has broken through 3,000 units this year, etc,.


The founder of Give Byte said: Better cryptocurrency infrastructure will promote bitcoin price recovery. Especially Bitcoin ATM, e-commerce payment gateway, mobile wallet, POS terminal accepts encrypted goods, and supervision.


2.Institutional investors who are afraid of missing opportunities

As bitcoin currency and a large number of altcoins set a new record high in December last year, a severe market adjustment followed, and the market began to stabilize until the middle of this year. However, after July this year, there are more and more encouraging signs that institutional investors are changing their attitudes again, suggesting that the adoption of mainstream investors is coming.


Let’s take a look at the Wall Street giants who seem to be laying the groundwork for a massive entry into the cryptocurrency market. In July of this year, BlackRock, the world’s largest exchange-traded fund (ETF), announced the establishment of a working group to assess the potential of investing in Bitcoin. This cross-industry working group is exploring a variety of investment options, but it is understood that Bitcoin futures will be put on the agenda. BlackRock’s move can be described as a huge opportunity for fear of missing cryptocurrencies.


In addition, Goldman Sachs Group is advancing into the cryptocurrency market. Goldman Sachs executive Rana Yared confirmed that the company intends to sell and buy bitcoin coin next month. On September 26, Goldman Sachs and Google raised $25 million for a bitcoin payment company. Several former executives of Goldman Sachs have also entered the cryptocurrency community.


These two factors are catalysts for the bitcoin price recovery in the next two months. It is expected that bitcoin prices will soar by the end of this year, just as at the end of 2017.

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Is the Bitcoin Price Drop Caused by Big Bitcoin Holders’ Selling?
October 16, 2018

Since entering the bear market this year, bitcoin prices are generally declined, from $20,000 at the end of 2017 to the current more than 6,000 US dollars, which you can check with the btc to usd chart history. This has caused many investors in the cryptocurrency community to speculate that the bitcoin price drop was caused by the secret sale of bitcoin by big bitcoins.


In response to this suspicion, blockchain research firm Chainalysis conducted a research survey, which showed that the big bitcoins are not the “culprit” that causes high volatility in currency prices. The study looked at 32 of the most-capitalized bitcoin wallets, holding a total of 1 million BTCs worth about $6.3 billion.


Big Bitcoins refer to individuals or organizations that hold large numbers of BTCs that are considered to have an impact on market volatility. However, the data from Chainalysis shows that the big bitcoins are a diverse group, and only one-third of them are active traders. Although the trading activities of these large households are indeed enough to shake the market, they are actually keen on the reverse operation and buy when the bitcoin trading price falls, which is we called “buy on dips”.


During the research, the company divided the 32 wallets into four groups. There are nine of the most active wallets, which are regularly traded on the exchange. This group of Bitcoin holders has more than 332,000 BTCs worth more than $2 billion, but only one-third are willing to have the habit of trading frequently. Most of this group of traders entered the market in 2017.


The second group of wallets belonged to miners and early adopters of bitcoin, consisting of 15 investors with a holding capacity of 332,000 BTC. The trading activity of this group is very low. However, most of them have been sold BTCs when bitcoin prices rose between 2016 and 2017.


The remaining two groups are the “criminal” group with 3 wallets (holding more than 125,000 BTC, worth 790 million US dollars), and the other group is “lost bitcon” wallet, holding more than 212,000 BTC. It is worth about $1.3 billion. Studies have shown that since 2011, the group who lost bitcoin wallet has never traded.


After analyzing these big bitcoin holders, Chainalysis found that they did not cause currency fluctuations. In the past two years when bitcoin prices fell, they even bought in large quantities. This kind of activity proves that the big players did not sell Bitcoin in large quantities, but instead added Bitcoin in late 2016 and 2017. This shows that they are almost always bought when bitcoin falls, so they bring stability factors to the market, not instability.

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Bitcoin prices fell by 70% because of Impossible trinity

It is well known that the Impossible trinity exists in traditional economics, proposed by the American economist Paul R. Krugman. Impossible trinity means that when a monetary sovereign state establishes monetary policy, it is impossible to achieve a balance between its monetary policy independence, exchange rate stability and free capital flow. Usually only one of the independence of monetary policy, exchange rate stability and free flow of capital can be achieved. A maximum of two of them are guaranteed.

Blockchain technology also has Impossible trinity: “high efficiency, low energy consumption”, “decentralization”, and “security”. Combined with the characteristics of traditional currencies, Bitcoin may become the digital currency of the world’s mainstream currency in the future. The core of its underlying technology architecture, blockchain technology, will be the focus.


First, the pursuit of safety and high efficiency and low energy consumption can not be decentralized

According to the concept of “decentralization” of Bitcoin, to achieve decentralized storage and management of all information, it is possible to avoid large problems caused by the failure of the central organization. However, the reality is that most of the business services and application ecosystems based on the Bitcoin application ecosystem are central. Many businesses that offer crypto business services and operations run at specific locations, specific devices, and specific people. And the important point is that the legitimacy of the platform is also worth considering. For example, monopolize the bitmain of Bitcoin mining.


Second, the pursuit of “high efficiency” and “decentralization” must sacrifice “security”

For example, a large number of video apps installed in mobile phones are facing high “security” risks while pursuing performance and decentralization. Assuming that there is an explosive topic in a video software, the flow of people on the website will increase dramatically, and the central server will face tremendous pressure, causing stagnation and sluggishness. The website usually chooses to download a video to a third party at the same time as downloading the video. Each node is both a downloading end and a server, so that the pressure of the central server can be alleviated and the video data is realized. “Decentralization.” However, there is a risk of disclosure of various data.


Third, the pursuit of “decentralization” and “safety” can not achieve “high efficient”

In designing the overall structure of Bitcoin, Nakamoto chose a combination of “decentralization” and “safety” technology to weaken the efficiency. According to the characteristics of the data structure, Bitcoin adopts a time-stamped “block + chain”, which ensures the traceability and tamper resistance of information and data, and also promotes the synchronization of distributed data. However, when the system verifies and queries the data, it needs to “traverse” all the data on the chain. Due to the redundancy of a large amount of data, this process brings a great workload and becomes “efficient processing”. Become a problem. Bitcoin has experienced about 10 years of development and there are still few transactions that can be processed per second.


I think that Impossible trinity cannot be overcome with current technology. This may be why bitcoin prices have fallen from $20,000 to $6,300. But we will continue to focus on the development of blockchain technology and cryptocurrency. Many ICO projects boast that their projects are free, safe and efficient. Before you invest, be sure to keep in mind Impossible trinity to prevent being deceived!

Click here Live Market of Bitcoin know about the lastest bitcoin price


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