Why does BTC price collapse
according to coinsmart, the highest price of BTC this month is $6533.4, while the current price is $4480.87, which once fell to $4100, a new low of this year, with a decrease of about 30%. The market value of bitcoin once evaporated by nearly one third, with a current market value of $548.1 billion
the overall market has fallen so miserably that some of the investors directly involved have lost tens of millions in this market
affected by bitcoin, the mining machine market also suffered. At present, the current price of bitcoin is lower than or close to the mining cost price in many areas, which means that the profit will be greatly reced or even the cost will be lost. Due to the unbearable losses, many players resell "mining equipment", and withdraw from the coin circle. At the same time, e to the currency decline, the income from "mining" can not make up for the hard expenses such as electricity charges, so that some loss making mining machines can only be cleared.
According to the latest data of bitfinex, poloniex, gdax and other trading platforms, the price of bitcoin continued to decline for six consecutive days. The latest price has reached the $14000 mark of Tiepo, which has dropped more than 30% from the highest point
Once people realize that's how it works, they start selling it, he says. The old bitcoin network may not work
Oldenburg admits that buying, selling or trading bitcoin is not a problem nowadays, but when bitcoin transactions are recorded in the blockchain, that is, when each transaction is recorded in the digital ledger, the problem will come to the surface. The crux of the problem is that you can only process a limited number of transactions per second in a bitcoin network, which in turn depends on the "block size" of memory in which the transactions are stored. Aldenberg said that would lead to the scarcity of liquidity and the unavailability of cryptocurrency
All in all, aldenberg doesn't believe that bitcoin will become the currency people use everyday. As long as the network is run by this group [in the old bitcoin network], these solutions will be found in bitcoin cash, where I will see the future, he saidRoger Waugh, an early investor of bitcoin and known as "bitcoin Jesus", believes that compared with the traditional version of bitcoin, bitcoin cash is faster, cheaper and more reliable. Some people in the market have predicted that bitcoin cash will replace bitcoin as the big boss of cryptocurrency, because bitcoin cash is more suitable for the efficient market
However, on Tuesday, coinbase, the leading bitcoin trading platform in the United States, announced that customers could buy and sell bitcoin cash freely, which prompted the rapid rise of bitcoin cash in the past two days, more than doubled in two trading days and set a record high of US $4300said in a weekly "House View" report: "what we think is all the characteristics of bubbles: high trading volume and little practical use, which indicates that many traders are seeking speculative returns. Although the supply of bitcoin is limited, there are many more widely used cryptocurrencies, and there are now thousands of potential substitutes. "
the report from UBS's chief investment office of wealth management reiterated the bank's attitude in October. UBS said at the time that it believed that the whole encrypted money market was in the "speculative bubble". p>
in this week's report, UBS wrote: "we do not recommend customers to invest in bitcoin or short bitcoin. In principle, the irrational time of these markets is much longer than you can tolerate."
in addition, the underlying reason is that the world does not recognize the monetary payment property of bitcoin, but regards it as an investment commodity similar to gold, and even has large-scale capital participation in speculation.
for the bitcoin market, some people say it will collapse soon, because the price is too high.
some people say that bitcoin will continue to rise, and the price will reach 10W, 20W US dollars.
you don't know which viewpoint to believe, I don't know who is right.
the best way is to study the bitcoin market, understand what bitcoin is, and then make your own judgment
bitcoin has dived into US $8000 in the day. The main reason why bitcoin is so powerful is that its price is high, its valuation is high, and investors make huge profits. Bitcoin itself does not generate profits, but its total market value is several trillion. Any rash will make investors realize their profits
with the continuous improvement of science and technology, the continuous development of the Internet and the emergence of emerging instries, bitcoin has gained more development in our times. As an emerging instry, bitcoin has attracted many people's attention, and its price has increased tens of thousands of times in a few years, which is the performance of wealth legend. Bitcoin's price is high and its valuation is also very high. Investors have made huge profits in the short term. Bitcoin itself does not proce profits, which leads to the deviation of valuation. The total market value is as high as several trillion. This shows that the chips have been loosened. This is also the reason why bitcoin's price is so strong
3. Can bitcoin the bottom
bitcoin's intra day plunge of US $8000 is indeed very volatile, but for ordinary investors, I do not recommend bottom hunting, because bitcoin is a high-yield and high-risk investment variety, and the fluctuation range is as high as RMB 45000 a day. In this way, not all legal persons can bear the fluctuation. There is no sign of stabilization for this position, so bottom hunting bitcoin is not recommended, In particular, general investors are not recommended to participate, so the risk is relatively high