Because none of the positive predictions has become reality: three main reasons for the collapse of Bitcoin


The stability of Bitcoin and other cryptocurrencies is a big question. At the moment, everything that the cryptocurrency does in a stable way is plunging into hell.

Infernal flight started on November 14th at 11:34 UTC. At that time, the BTC rate was around $ 6 365, and the ETH was $ 206, second CoinMarketCap.


At the time of writing this article, on November 20 at 11:00 UTC, the same resource updated the data at an even more disastrous rate: the cost of a BTC is $ 4 459 and ETH $ 132.

At the same time, the Coin 360 monitoring resource shows a BTC rate of $ 4 460 and an ETH $ 131.


Apparently, the collapse in the rate of coins will not stop, and this clearly indicates that a fatal event happened in the cryptic industry, which brought down the market.

Because of the specificity of cryptocurrency, it is impossible to determine now what exactly is the main reason for the fall in prices. However, The shark of the coin conducted its own independent investigation and identified three more logical versions of why crypts "tend to zero".

Thus, the reasons for the market crash can be:

1. The division of Bitcoin Cash into BCH SV and BCH ABC;
2. The refusal of the Chinese authorities to provide miners with cheaper electricity;
3. The theft of 600 BTC from the Bitmain company.

Now, let's consider every reason in a more detailed way.

1. The splitting of the Bitcoin Cash rigid fork

It is possible that the sudden collapse of the market is a consequence of the Bitcoin money hard forks. History has shown once again that serious network updates cause panic within the crypto community. Especially among investors, who are starting to sell their coins properly. Panic attacks are not so unprecedented, but rather very thoughtful. If a malfunction occurs during the fork, it is guaranteed to have an impact on the future of the encrypted market.

Presumably, the cause of today's "successes" of cryptocurrency is a backdoor, which hackers manage to discover and make a hash deviation from BTC.

We want to remind you that Bitcoin Cash is now divided into Bitcoin ABC and Bitcoin SV.

In this regard, Australian programmer Craig Wright wrote on his Twitter:

Also the founder and CEO of BKCM, Brian Kelly, believes that Bitcoin Cash is involved in the collapse of the rate of BTC and other cryptocurrencies. He shared this during an interview with CNBC Fast Money.

Most likely, this pseudo-war between BCH SV and BCH ABC in the near future will cause a decrease in the hahrate in BTC, which in turn will reduce the speed of the network.

"People are worried that both Bitcoin and Bitcoin Cash markets, their networks may slow down, may not work as well, software upgrades may fail or if they end up, we'll end up having a bit of chaos: people started selling, making stops happen, everyone got worried, the whole market calmed down – in my opinion, a very short-term event ",explained Kelly.

2. Insufficient speed of the Bitcoin network

The authorities in the provinces of Xinjiang and Guizhou stopped to provide electricity to cheap Chinese miners. Now the miners are forced to look for an alternative method to extract Bitcoin and other cryptocurrencies.

For this reason, the main mining structure, located in China, suspends their activities in order to find an alternative resource for the mineral cryptocurrency. This caused the decrease of the Bitcoin hashin network by almost 20%.

3. Theft of 600 Bitcoins

A great Chinese company, Bitmain, he announced that his account has been violated in Binance's cryptic exchange. At the time of the hack, more than 600 BTCs were stolen – which corresponds to about 2.7 million dollars at the time of writing this article. The hacker has not yet been found, but it is known that he tried to increase the speed of a cryptocurrency MANA with the help of this money.

This type of news has already changed the mood of the market, reducing the rate. It is likely that this particular incident could undermine Bitcoin and other digital coins.

Why did none of the positive forecasts come true?

It is impossible to predict the cryptocurrency rate in advance, as can be done on the usual market for Fiat. On the cryptographic market, we see the result and only the reason. For example, the dollar rises after increasing the discount rate in the United States, but the cryptocurrency is not. Because, its rate does not depend on the ordinary economy and the decisions of the authorities.

The cryptocurrency rate is not supported by anything. It only depends on the supply and demand. Therefore, it is impossible to predict the rate behavior in advance. For example, exactly one year ago, on November 20, 2017, the Bitcoin rate was $ 8 039.


After just one month, the tariff set the first historical record – $ 19 440.


Based on the situation of the last year on the encrypted market, it can not be said that this year will be the same. This market is sensitive and unpredictable.

In relation to the worsening of situations, all cryptocurrency owners are worried – "What to do next?" – this is a good question. But unless the real reason for the rate collapse is revealed, there will not be an exact answer. For now we can only imagine how the events will be discarded.

For example, a financial analyst, Alexey Polovinkin, in an interview with OBOZREVATEL, shared the opinion that the world's most massive cryptocurrency rate by capitalization will increase by $ 40,000 for a currency. The expert explained that Bitcoin will grow due to the possible legalization of cryptocurrencies, which will have an effect on institutions and investment companies. According to Alexey's point of view, they will start by considering the placing of cryptocurrencies in the marker in a large amount. We want to remind you that Polovinkin predicted the growth of Bitcoin in 2017.

In addition, a venture capital investor Tim Draper is trying to make a good forecast, reports The Daily Hodl. The investor is confident that in 2022 the price of Bitcoin will rise to $ 250 thousand. While, an investment banker and millionaire Mike Novogratz, makes more modest forecasts, stating that the rate will reach only $ 10 thousand.

Not all sharks in the encrypted world are optimistic about the future of the market. In this regard, CEO of the BitMEX exchange, Arthur Hayes, say that the next 18 months will not be the best time for cryptocurrency. He is confident that interest in digital money will diminish, which will affect the rate of coins.

Vinny Lingham, CEO of the American startup Civic, state that Bitcoin had no possibility of existence. Even if its rate increases, it will still fall to $ 100 for a BTC.

"I think we'll have another bubble? Probably, because people just do not learn." When it comes back to $ 20,000, it will return to $ 100 or something, " "said Lingham.

As you can see, the estimates are different and there is no clear idea on the growth or imminent reduction. Therefore, any provision should be reasonably judged. Until then, cryptocurrencies continue their infernal way to stop "anti-record rate of 2018".

Subscribe to The Coin Shark Facebook news:

[ad_2]Source link