The price of Bitcoin has dropped by 11% today, on January 31, and once again, the cryptocurrency market is struggling to recuperate from its preceding corrections. Other major cryptocurrencies like Ripple, Ethereum and Cardano have also dropped by 8 to 13 percent and have triggered the cryptocurrency market crash.
Performance of Bitcoin:
In December, the valuation of the cryptocurrency market fell by more than 30%, and since the cryptocurrency market crash, most of the cryptocurrencies have struggled to record hefty gains in the cryptocurrency market. So, we can say that the crash in the performance of bitcoin is not exclusive to bitcoin.
Bitcoin is among one of those few major cryptocurrencies (excluding Ethereum), that hasn’t recorded a 50% drop from its all-time high. Whereas, other cryptocurrencies like Bitcoin Cash and Ripple, have dropped by almost 60% from their all-time highs. Apparently, the current price trend of bitcoin shows that the cryptocurrency isn’t performing well in terms of adoption and user activity.
Robinhood is a US-based financial services company that allows individual investors to invest in publicly traded companies and the stock market. Robinhood recently announced that it is going to launch a cryptocurrency exchange and a bitcoin, also, it will allow traditional finance market investors to trade in the cryptocurrency sector.
It is expected that the Robinhood’s cryptocurrency trading platform will launch in February. Above 998,000 users have already signed up to get the early access to Robinhood’s cryptocurrency trading platform and that is almost 10% of the user base of Coinbase.
Multiple hedge funds have expressed their sanguinity this week towards the short-term trend of bitcoin. There have been many rumours in the market that the institutional investors in the finance sector have sold huge amounts of bitcoin in an attempt to lower the price of bitcoin purposely.
Acceptance by Retailers & Other Financial Sectors:
South Korea’s one of the largest e-commerce platforms “WeMakePrice” have started to adjust twelve cryptocurrencies into their present system in partnership with Bithumb. Soon, cryptocurrencies like Bitcoin, Bitcoin Cash, Qtum, Ethereum, Litecoin and EOS will be accepted by WeMakePrice, which will make it South Korea’s first retailer to accept cryptocurrencies.
Right now, the cryptocurrency market is endeavouring to reflect this speedy adoption of cryptocurrencies by retailers and large-scale companies, which bitcoin sceptic, Howard Schultz (Starbucks chairman), has labelled as the only essential feature for the progress of cryptocurrency market.
As the major cryptocurrencies in the market such as; Bitcoin and Ethereum, continue to be adopted by retailers and other major financial sectors, within few weeks, the valuation of the market would certainly upsurge.
Buy a Bitcoin?
A lot of people today, looking at the progress and boom of bitcoin want to invest and buy bitcoin. But bitcoin is not a company or a stock. So, what do all these people mean by investing or buying Bitcoin? Bitcoin is a currency. How do you want to invest in a currency? If it meant appreciating the value or trading it, we need to have a closer look at the insight first.
Buying and holding
Buying Bitcoin in hope that you will avail the opportunity cost or the value will appreciate, is known as ‘Hodling’. If this is the intention then you need to do your homework yourself beforehand. Study the nature and behavior of the currency. Study and observe the reasons it fluctuates and reacts according to the changing socio-economic natures around the world. Few points to account for;
- It is a risky task to perform. Always risk the amount that you are okay loosing too. The tables are not always on your side.
- Always transfer currency to the personal wallet. Never leave it on the exchange. It may result in scam or fraud.
- Always choose reputable exchangers.
- Use the method of cost averaging to buy Bitcoins.
If your aim is trading than it means you are an active participant in buying and selling the currency. You buy the cryptocurrency at lower rates and sell when the rates go up. Trading gives reward only through knowledge and practice.
Investing in Mining
If you are interested in Bitcoin mining and needs to invest in equipment to mine more Bitcoins, it’s not that easy of a task too. There is a lot of scams included in this act too. You may come across complete scams eating away all your currency. Or you may end up in bad investment companies by paying the sites for more coins. It’s basically all surrounded by risks and risks.
Investing bitcoin companies
If a company claims to double to your coins or give the reward that is too good to be true then maybe it is not true. These companies are mostly scams or HYIPS (High Yield Investment Programs). These sites promise untrue rewards and start by creating a referral program or a big buzz around on the site. Entertaining a few startups for a few months, these companies will vanish in the air in no time. There will be no compensation and people will be left crying over the lost bargain. You cannot trust a site fully to say it legit or trustworthy to the fullest.
Is it late to buy bitcoin?
The answer to this is not that simple yet not so complicated too. It totally depends on the understanding and knowledge of the currency. A decentralized, peer to peer electronic currency, controlled by no one but just by the consumer, can be so unreliable to put the bid on. The important is to know how to invest rather than thinking whether to invest or not. The only way out is to know the currency. To understand the knowledge and nature of the currency, its fluctuations and variations are all that counts to invest and make reward out of that investment.
September isn’t even over yet and bitcoin has already shown three different reactions. From starting off with a $5,000 hit, then falling by 40%, and then recovering back to the $4,000 mark by Monday morning.
This post is going to add more light to some of the major bitcoin crashes we’ve experienced regarding bitcoin. In the end, we might be able to come up with possible reasons as to why bitcoin is so volatile and what predictions can be made for it in the future.
April 2013 – The Meltdown:
Back in spring of 2013, Bitcoin experienced a ginormous drop from $233 to $67 overnight. Which is a 71% drop.
The crash took place right after the currency was experiencing a surge of media coverage which drove it to above $200. While the currency had never crossed $15 before 2013, the mainstream led it to a new height, only to watch it fall down to a double-digit again.
Bitcoin Crash in 2013:
The majority of 2013, Bitcoin’s value was around $120. But, the prices boosted ten-fold in the fall and Bitcoin hit a mark of $1,150 in November. Then the prices came tumbling down to lower than $500 by mid-December.
This price chase was actually because many investors were experimenting with bitcoin for the first time. Also, exchanges like Coinbase had a simple user interface which made it easier for users to buy bitcoin.
The Mt. Gox Tragedy of 2014:
Once again, Bitcoin was on a roll, making great gains again after the 2013 bubble pop situation when in February, the price fell from $867 to $439. This triggered a slow phase for bitcoin that went on till late 2016.
This crash took place after the operator of Mt. Gox announced the exchange had been hacked. They later revealed that around 850,000 bitcoins were stolen which would be worth around $3.5 billion today. Furthermore, this incident created major doubts about the security of this digital currency and is responsible for the low-lying value of bitcoin the past couple of years.
Bitcoin’s Big Break in 2017:
Bitcoin price history: Back in early January, bitcoin crossed the $1000 mark after years and began driving up exponentially. By June, the cryptocurrency had reached $3000 however, it fell right back and landed at $1,869 during mid-July.
With the increase in demand for bitcoin and number of transactions, people began to notice that the digital currency was getting slower. Especially with its developers not being able to agree on how to update the software. This raised the speculations of a possible “fork” to occur which would be producing two different versions of bitcoin. Thus, the market experienced a fall and when the fork took place in August and produced a rival currency, Bitcoin Cash, no long-term harm was made to bitcoin.
The Great China Chill:
Once the market had settled over the fork and activation of SegWit2x, bitcoin had made another massive jump to $5,000 during the beginning of September. Only to plunge back down 37% and dusting off over $30 billion from its total market cap, by September 15. Although, it’s already on the track to recovery as its prices climbed to $4000 three days later.
Well, this can be summed in one word as CHINA. While there were numerous rumors as to how cryptocurrency trading would be banned in China, a response was given soon after as BTCChina, its largest bitcoin exchange, announced that it would be ending trade this month.
Lessons Learned from the 5 Crashes:
The last 5 years have included some heart-wrenching falls and drops that confirms how volatile the cryptocurrency is. Regardless of the reason being a major hack or a government crackdown, bitcoin has always managed to bound back. This is assuring for all those tensed bitcoin buyers who are planning to hold onto bitcoin for the long run. Today, the digital currency market is a lot bigger and is proving to stick around so, it appears that bitcoin is very well, a safe bet.
Story Credits: fortune.com
Image Credits: dnev.com
We share content, information, messages and routine life on the internet. Money should also work in the same way as for transfer of information. Secure, worldwide, free, open without any central authority and most importantly, transfer of money with fun. In that case, we have an option chinese circle on vision, that we should be able to exchange values.
The main vision is to connect the world’s largest currency zones. That is why a foundation for this purpose has been established in US and UK. The foundation will transact Euro, Dollar, Pound, and other large currencies to blockchain technology.
Customers in the UK, US, and soon in Europe can soon perform these transactions. They will be able to do transactions in a secure and freeway through Circle’s social payment app.
With the rising of this technology, Circle is going to introduce this technology to its Chinese customers.
The Circle has launched a company in China manufacturing, raising $60 Million from Chinese investors. The company is keen on expanding into world’s second largest economy. Chinese firms including Baidu, CICC Alpha, Everbright Investment, IDG Capital Partners, and Beijing-based tech investment have reportedly made the latest funds.
Allaire says, “We’re not aiming to compete with the domestic market as that would be a suicide mission given the strength of local players like Alipay and WeChat, but we can connect Chinese consumers with the euro zone and dollar markets”.
Strategy in Financing:
IDG Capital Partner, the prolific Beijing-based VC led the $60Million strategic finance.
Along with IDG, Breyer Capital and General Catalyst Partners, we have brought on a powerful syndicate of major strategic partners in China, including Baidu, CICC ALPHA, China Everbright Limited, Wanxiang, and CreditEase.
These strategic partners make it sure that they will create an open, global, and free model of social payments. That will be enabled for the consumer in China, US, UK, and also in Europe.
Circle’s China Unit:
Circle’s China unit works as the local incorporate company. Allaire says,” Circle’s China unit has not launched any product. Whereas, there are already many pending deals with banking partner and legal license to operate.”
In payment process, Circle allows payments to countries in which this technology has not launched yet. Whereas, payments have transferred in Bitcoin within few minutes via blockchain network. Once the process of payment completes, the Bitcoin transfers to the currency. Circle’s aim is to connect China trading consumers with new global means of payments.
People’s Bank of China wants to launch its own digital currency. Basically, they want to decrease the cost of traditional paper money and boost policymakers. That is why they are in support of digital revolutions like Bitcoin.
Allaire finished with: “The company now adds the support for euro-denominated payments in Spain as the first step of a broader euro rollout.”
Since the introduction in 2009, Bitcoin has been on an incredible rise. The value is always going up, and so is the speculation about BTC’s future.
At the time of writing, Bitcoin had already gone past the $2500 mark – and the trend is still expected to continue. Incredible! Isn’t it?
Considering bitcoin’s popularity, it is clear as rain that this currency is surely going to play a huge role in the B2B (Business to Business) community in future. However, the question is; what role will it play and how will bitcoin affect the B2B community worldwide?
Anyone with the slightest of the knowledge of business community would know that the volume of B2B transactions is way too higher than the volume of P2P (Person to Person) transactions.
Moreover, bitcoin in business has all the potential and tech to replace traditional payment systems – wire transfer being the most common one. In terms of speed, wire transfer is quite slow. The transfer between two countries may take up to a week; which, in business terms, is a waste.
Another traditional payment method used in the business community is ACH (Automated Clearing House). The method is cheaper but slower than the wire transfer, so it needs replacing too.
On the other hand, the client, as well as the merchant prefer instant Bitcoin payments and is a perfect fit for it. The crypto can be used to send/receive payments within a short period of time which may range from one to a couple of hours.
After reading all that, one might wonder: “if Bitcoin is instant and convenient, what’s stopping it from breaking into the Bitcoin B2B community?” It’s the acceptability and lack of usage. Bitcoin payments can only work if both parties are willing to use it – and considering the risks associated with this currency, not many are ready to accept bitcoin as a payment method.
However, if the business community decides to go with bitcoin, here are some benefits that they can enjoy:
Compared to conventional payment methods, Bitcoin is super-fast. The ability to complete international transactions within a few seconds/minutes can solve the speed issues.
Low transaction cost is another advantage of Bitcoin. Where other methods cost up to 10-40 USD, transactions through Bitcoin only cost a few cents.
The majority of the adult population relies on services like Money Gram or the Western Union for money transfer. Services like these follow a set of rules and restrictions imposed by the government; which greatly affects one’s ability to do business.
However, Bitcoin can solve the issue as it is regulated by a third party to impose restrictions on users. It ultimately provides users with more freedom and makes the transfer process simple. Anyone with a regular PC and access to the internet connection can transfer the coins to whichever part of the world they want.
These are some of the pros that Bitcoin brings with it for the business community. However, all is not that simple. Bitcoin adoption in B2B community can also bring about some harms with it – security and price volatility being the most common ones in Bitcoin community.
One of the biggest issues with Bitcoin is that the security is the responsibility of the individual making payments. For example, if someone is sending a certain number of bitcoins to someone else, the first thing they will need to make sure is to send it to the right address. A slight mistake and the coins are gone forever.
Another issue is that your computer at which bitcoins are stored must not have any spyware and other suspicious programs installed on it. It compromises the security of the bitcoins.
Another issue with Bitcoin is high volatility. The value of Bitcoin changes in a matter of minutes. With such instability, it’s almost impossible for the business community to adopt Bitcoin payments.
Although Bitcoin is the most popular form of cryptocurrency and allows instant transfers, there some issues with it – stopping it from a wider adoption. Once these issues are dealt with, there is no doubt that bitcoin will rule the business world.