Crypto market takes a bashing
As the holiday season approaches, it is time to start reflecting back over the past year. Bitcoin is going to generate some fascinating conversations ever since the BTC mania this time last year.
At that point, college grads were returning home with news of the all-new digital cash, and of course, this sparked interest. From those turkey dinners BTC spiraled to its all-time highs, and now it has crashed to all-time lows since those first conversations. Crypto market levels have dropped but now they appear to be on a more realistic level, and one thing for sure, there won’t be as many relatives clambering to get in on the action.
Now, all but eight of the top 100 crypto tokens are down in value with losses averaging around 13-14% at the time of writing.
BTC is now well under $4000 and heading south the longer time goes on. Ethereum is trading a little over $100, and Litecoin has broken through the $30 marker but in the downward direction.
Now it is a question of when it will all stop, and all the coins will hit the bottom, and for some, there won’t be a base just an exit door into obscurity.
It might just be crypto volatility is still there, only at the wrong end of the crypto spectrum.
Bitcoin payments drop by 80%
This information is citing Chainalysis data via Reuters. According to them, BTC retail payments were down 80% during the month of September. In this comment, there was no hint of a rebound, and maybe this was a sign of the current value of BTC?
A few things have been blamed for this and the first one being scalability and the expense associated with it. Then there is the volatile nature that is associated with Bitcoin itself. Mass adoption requires stability, and if the coin is only there for investors to grab hold of and hang onto, it isn’t much use to anyone.
There is also the adoption by retailers to accept BTC as a payment method, and for that to happen, then there are certain conditions that need a meeting. From the retailers POV there must be an added value, and so far there isn’t any.
BitPay has taken steps to attract customers to its service who ask for the US dollar value of any sales protected. As a solution, BitPay has added three stablecoins to give retailers a more flexible option, hopefully. They also have the chance to accept BTC payments but cash out in dollars.
Foreign stock markets drop, is there a connection to crypto?
As we speak, the crypto market continues to slide downward. At the same time, the US, South Korea, and China all have high losses in their respective stock markets. Cryptos were seen as a means of long-term investments in the eyes of millennials. However, the past few weeks have shown that cryptos are still affected by real-world stock markets and the weakening of the global economy.
All the things that were said wouldn’t affect the decentralized coins, but it appears there is some impact because it was then that crypto’s dropped by 35%.
In the US they are experiencing one of the worst stock market sell-offs, and this is coupled with a decline in the Chinese stock market due to Trump’s trade war between China and the US. Because of the weakened position in these two markets, South Korea has also taken a hit, and couldn’t be timed any worse because they are struggling with their own growth rate.
No matter which market is affected at the moment, investors are expecting the Chinese and US precarious position to continue. The question is, how is this going to impact on the crypto market in their time of uncertainty?
Genesis CEO says BTC won’t bottom until it hits $3000.
Michael Moro of Genesis Trading believes that Bitcoin will continue to drop until it reaches the low $3000 mark. He states there is lots of pressure from late arrivals into the crypto scene to sell off while they can. He also pointed out that this support has twice been tested over the past few days.
There is an expected floor in the value of BTC because of the power and equipment needed to mine the coins. It was at this point it was stated that BTC is already below the break even point, and the large mining pools will run at a loss until there is a difficulty adjustment and the break even cost adjusts itself over time.
The network attempts to produce one block every ten minutes, and in two weeks it is thought they can mine 2016 blocks. If these are mines in less time than this the difficulty increases as does the mining cost.
If it takes longer than this time, then the difficulty is decreased. This is self-regulating because as the hash rate falls, then the difficulty levels are adjusted and can reduce the costs of mining.
It was also stated BTC has been in this situation before, and they aren’t interested in the value of BTC now because they are looking at 3 – 5 years further on.
The battle for the name Bitcoin Cash has ended
It was a hard fork in more ways than one, and it appears neither of the two factions wants to keep the Bitcoin Cash name. A statement on CoinGeek claims Bitcoin Cash SV will continue as a spate entity and that coin is, in fact, the original Bitcoin.
Now they have split and are both operating as separate coins with the second being Bitcoin Cash ABC.
All this being said BCH ABC has taken over the title of Bitcoin Cash, but they have ditched the consensus created by Nakamoto. Whatever happens between the two coins, it definitely affected the entire crypto market. One surprising outcome was the third coin accidentally created, Bitcoin Unlimited.
Up until the point where dust was finally settling, it was reported that Bitcoin Cash ABC was outperforming Bitcoin SV regarding hash rate. At the time many exchanges suspended Bitcoin Cash trading and withdrawals, but now trading is slowly getting back on the road.