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Bitcoin (BTC) – Catalysts that could propel Bitcoin to over $100k

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There has been debate for some time now about the future of bitcoin (BTC). On one side, there are bitcoin maximalists who believe that bitcoin will eventually whitewash the rest of the market, and emerge as the only relevant crypto. On the other hand, there are those who believe that the emergence of altcoins that are technically better than bitcoin will lead to its eventual irrelevance, and demise. While no one can really predict the future, it is easy to tell that bitcoin is not going anywhere. In fact, those who believe in its eventual monopoly might be right. Here are a few reasons why.

  1. Bitcoin (BTC) could eventually make privacy coins irrelevant

A good chunk of the cryptocurrency total market cap is made up of privacy-focused altcoins. However, bitcoin has the potential to make them irrelevant, thanks to coin mixers. Coin mixers work by shuffling the addresses between the bitcoin sending and the receiving address, thereby making such transaction pretty much untraceable. Considering that bitcoin is already well-known in the market as compared to the privacy coins, it then follows that in the long-run, most people seeking privacy will simply use bitcoin to make anonymous transactions. There is just no incentive for someone to use other coins, when bitcoin (BTC) can achieve the same end. The result is that the bitcoin network could see its market share grow significantly, and as market share grows, so will its value.

  1. Bitcoin is the ‘gold standard’ of the crypto market

Anyone who invests in crypto knows that there is a relationship between the price of bitcoin and the altcoins market. Altcoins generally tend to follow the price of bitcoin, which makes it easy to predict the general trend of the entire market by analyzing bitcoin. Even more noteworthy is the fact that anytime bitcoin performs so well, the altcoins market follows it, albeit slowly. That’s because people tend to push their investments into bitcoin since it is better known, and is more secure as an investment.

In essence, if bitcoin continues in its current trajectory of renewed growth, more money will flow into it, slowly increasing its dominance over the rest of the market. Prove to this is the increased attention that bitcoin is receiving now that it is close to the $10,000 price level. If it were to break above $20k, money would flow in huge volumes from the altcoins markets, thereby driving up its dominance, and rendering a good chunk of altcoins irrelevant. There is just no reason why anyone would speculate in some little known altcoin when bitcoin is more secure and offers similar, or even higher returns.

When most people think of smart contracts, the first thing that comes to mind are platforms like Ethereum, and many others altcoins are entering the market at the moment. However, most people don’t know that bitcoin can be used to create smart contracts. There have been successful Dapps created using bitcoin, one of them being Particl. The best thing about bitcoin smart contracts is that they offer the same functionalities as all the other platforms, but with the added advantage of unmatched security. Once bitcoin developers figure out a way to scale it, and they will, bitcoin will render most projects focused on the development of smart contracts irrelevant, and we all know what that means to its value.

With all these factors at play, it is not hard to see why bitcoin could end up making the rest of the market irrelevant, and emerge as the only relevant crypto. That’s why people who forecast that bitcoin (BTC) could get to $100k and above may not be exaggerating. The fundamentals are there for such a scenario.

Bitcoin

Bitcoin (BTC) Loses 1.13% Overnight; Value Falls Below $7300

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Bitcoin has been down by 1.13% over the last 24 hours, and it has shown three major price swings in the range of 7382 USD and 7175 USD. It is expected that Bitcoin may take things slower from now on.

Bitcoin Price Prediction

Bitcoin opened the day near 7315 USD, and over the next 4 hours and 37 minutes, it gained 0.91% and got placed at 7382.33 USD. It was followed by a huge decline in the value. Between 04:44 UTC and 17:59 UTC, Bitcoin fell by 2.80% and touched the lowest point of the day at 7175.77 USD. The last swing of Bitcoin happened between 17:59 UTC and 01:22 UTC today and in these 7 hours and 22 minutes, Bitcoin managed a hike of 0.83% that added 59.65 USD and pushed the value to 7235.42 USD.

BTC Price Prediction

There has been a marginal increment in the market cap of Bitcoin. Yesterday, the market cap was at 131.696 billion USD, and today, it has been increased to 131.829 billion USD.

Bitcoin’s 20 days MA stands at 7351.55 USD, and it’s 50 days MA is now at 8207.4 USD. The current price at 7232.98 USD is 11.87% and 1.61% less than the 50 days and 20 days moving averages, respectively. BTC’s next halt may come at 7386.08 USD in the coming few days as its next resistance.

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China Continues to Dominate Global Bitcoin Mining, But for How Long?

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New research shows that China’s dominance of the total Bitcoin hash rate continues to grow. The nation reportedly now accounts for around 66 percent of all the computing power supporting the Bitcoin network at present.

China has historically been the leader in global Bitcoin mining. However, with large mining operations coming online in the US and Russia in 2020, the industry this time next year might look quite different.

Two Thirds of Bitcoin Mining Happens in China, Says Report

A report by CoinShares, cited by Reuters, claims that Bitcoin miners located in China now control around 66 percent of the total network hash rate. Hash rate is a way of describing the amount of computing power supporting the network.

Total network hash rate has been rising rapidly during 2019. NewsBTC has reported several times about new all-time highs in terms of the amount of computing power supporting the Bitcoin network. With mining interests investing heavily in hardware, it’s clear that Bitcoin miners are confident in the future of the digital currency.

Chris Bendiksen, the head of research at CoinShares, attributes the rising hash rate to Chinese miners deploying higher powered hardware sooner that those located in other countries. Three of the largest manufacturers of mining hardware are from China: Bitmain, MicroBT, and Canaan. Despite how opaque the industry is it seems fair to conclude that a large proportion of the most cutting-edge mining hardware will be deployed in China first.

Although the mining industry in China is growing faster than in other nations, there are large operations in the works that allow other nations to catch up by this time next year. New mega mining farms are being planned in both the US and Russia at the moment.

Bitmain itself has just opened a huge mining operation in the state of Texas. The facility currently has a total capacity of 50MW. However, the Chinese mining giant says it has plans to increase this to 300MW at a later date.

Similarly, Layer 1, a San Francisco-based startup, also plans to launch a mining operation in Texas. This effort seeks to lower the mining industry’s dependence on firms like Bitmain by developing its own cutting-edge hardware and cooling systems.

Meanwhile, the Russian Mining Company (RMC), owned by the nation’s internet ombudsman also has plans to create a vast new operation in the province of Karelia. CEO of RMC, Dmitry Marinichev, claims that the new facility will command around a fifth of Bitcoin’s total hash rate when it is completed.

Meanwhile, the Russian Mining Company (RMC), owned by the nation’s internet ombudsman also has plans to create a vast new operation in the province of Karelia. CEO of RMC, Dmitry Marinichev, claims that the new facility will command around a fifth of Bitcoin’s total hash rate when it is completed.

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Bitcoin technical analysis: BTC/USD bears have forced a devastating daily closure below flag pattern

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  • Bitcoin price is trading in minor positive territory, up some 0.35% in the second half of the session. 
  • BTC/USD price action broke out and closed below a bearish flag via the daily chart view.
  • The next major daily support is eyed at psychological $7000 down to $6800 range. 

BTC/USD 60-minute chart

Price action is moving within a near-term bearish flag structure, to suggest another break south may be around the corner. 

BTC/USD daily chart

The price is trading just below a bearish flag structure, which leaves it vulnerable to further potential downside for now. 

Spot rate:                  7,387.68

Relative change:      +0.35%

High:                          7266.01

Low:                           7177.92

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Source: fxstreet

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