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Bitcoin Records Highest Price Since Crisis Began Sign For The Near Future? The Crypto Weekly Update

Bitcoin Records Highest Price Since Crisis Began, Sign For The Near Future? The Crypto Weekly Update

Bitcoin had a relatively good week of trading as it recorded its highest price since the coronavirus crisis began in March.

Yesterday, BTC peaked at above $7,200, marking an impressive daily run that sent the entire cryptocurrency market well in the green. The majority of altcoins were also charting double-digit increases. Since then, Bitcoin’s price retraced to where it currently sits at about $6,750. The important level to look for right now appears to be $7,000, and if the bulls manage to break it, they might aim for $7,500 next. This week there was also a major acquisition, arguably one of the biggest in the cryptocurrency field. Binance, the world’s leading exchange, acquired Coin Market Cap – the largest data monitoring resource in the field. The sum of the deal was undisclosed.

On another note, the novel coronavirus continues to cause a lot of damage to the markets. As many countries instituted mandatory and recommended lockdowns, legislation is also stalling. Russia, for example, delayed the passing of a bill which, interestingly enough, would prohibit cryptocurrencies to be used as a means of payment. Amid this economic uncertainty, stablecoins are taking the spotlight. There is a record-breaking amount of USDT circulating, as its number sits above 6 billion for the very first time. It’s perhaps somewhat expected in times of serious volatility. It’s interesting to see how this money will be deployed and if it would have an impact on the market.

The Biggest Crypto Acquisition? Binance Exchange Acquired CoinMarketCap For An Undisclosed Sum.

Binance, the world’s leading cryptocurrency exchange, acquired the biggest data monitoring resource Coin Market Cap for an undisclosed amount. Both entities will remain entirely independent, according to the official releases.

No April Fools’: $633 Million Worth Of Bitcoin Transferred For Just $0.26 Fee.

This week saw another example of the efficiency of Bitcoin’s network. A whale transaction for $633 million worth of BTC was carried out for an insignificant fee of just $0.26. The transfer was made by the cryptocurrency custody giant Xapo as an internal transfer.

Telegram Can’t Sell GRAM Tokens Even Outside The U.S., Judge Clarifies.

The saga with Telegram and the US SEC continues. A judge has recently clarified that the company behind the popular encrypted messaging app won’t even be able to sell GRAM tokens to residents outside of the U.S.

Sitting Aside: Record-Breaking 6 Billion Tether (USDT) In Circulation Following Major Bitcoin Price Volatility in March.

In times of economic uncertainty, investors tend to seek ways to protect their capital. This is perhaps the reason for which there are currently over 6 billion USDT in circulation – the highest amount in history.

Russia’s Legislative Ban On Cryptocurrency Delayed Because Of The Coronavirus.

Countries continue to suffer due to the spread of the novel coronavirus. A report came recently that Russia will have to delay legislation that would potentially see cryptocurrencies banned as a means of payments in the country.

Bitcoin’s Opportunity? The U.S. Dollar Losses Value Following The Record $6.2T Stimulus Package.

Because of the outbreak of COVID-19 and the effect it had on the global financial markets, the U.S. initiated a stimulus package that would see a total of at least $6.2 trillion printed. This had a negative effect on the dollar that temporarily lost value against the Euro and the GBP. Perhaps this is Bitcoin’s time to shine.

Article Produced By
George Georgiev

Georgi Georgiev is CryptoPotato's editor-in-chief and a seasoned writer with over two years of experience writing about blockchain and cryptocurrencies. Georgi's passion for Bitcoin and cryptocurrencies bloomed in late 2016 and he hasn't looked back since. Crypto’s technological and economic implications are what interest him most, and he has one eye turned to the market whenever he’s not sleeping.

https://cryptopotato.com/bitcoin-records-highest-price-since-crisis-began-sign-for-the-near-future-the-crypto-weekly-update/

Thomas ClaimCo.in

Bitcoincom Lays Off Half Of Its Workforce With Bitcoin Cash Halving Only 4 Days Away

Bitcoin.com Lays Off Half Of Its Workforce With Bitcoin Cash Halving Only 4 Days Away

Bitcoin.com Lays Off Half Of Its Workforce With Bitcoin Cash Halving Only 4 Days Away

It appears that gloomy days lie ahead for the Bitcoin Cash (BCH) camp. According to recent reports, Bitcoin.com has reportedly cut 50% of its workforce with only four days remaining until Bitcoin Cash’s halving.

Bitcoin.com Sacks 50% Of Its Employees

The coronavirus pandemic has wreaked havoc on companies all over the world. As a result, most of the companies are holding off hiring for the time being while others are downsizing their workforce. Notably, Bitcoin.com, which is at the forefront of championing Bitcoin Cash (BCH) has succumbed to the coronavirus pressures.  As per data from Condor, a professional network that is tracking hiring freezes and layoffs amid the coronavirus crisis, Bitcoin.com has laid off almost half of its staffers. Going by the information available on its official LinkedIn page, half of the 131 employees are now out of work. As ZyCrypto recently reported, the most recent price massacre on March 12 and March 13 had dire consequences on miners on the BTC, BCH and BSV networks. Miners on the two bitcoin forks are already moving to the BTC network. Analysts are predicting that this will go on especially with the upcoming halvings for the BTC offshoots. 

Impending BCH Halving The Reason For The Layoffs?

Mining on the BCH network, just like on BTC, is profitable as long as the prices remain high. However, since late-February this year, BCH has lost almost 32% of its value. The cryptocurrency is hovering at around $235.28 at the time of publication. At such painfully low prices, miners are earning mediocre returns for securing the BCH network. The situation could soon get a whole lot worse with the imminent halving.

The Bitcoin Cash network will undergo halving in four days’ time. Miners on the network currently receive 12.5 BCH for discovering new blocks, but they will start getting only 6.25 BCH after April 8. The reduced mining earnings will potentially add more pressure on the Bitcoin.com mining pool which is still reeling from the losses of the recent coronavirus-induced sell-off. This is possibly the reason why the company has slashed its workforce ahead of the BCH halving. Nonetheless, such an enormous downsizing is bad news for the BCH community. And with miners already migrating from the Bitcoin Cash network to the BTC network even before the April 8 halving, safe to say that BCH’s future is hanging in the balance.

Article Produced By
Brenda Ngari

Brenda is a crypto and Blockchain enthusiast and has been crafting articles for at least a year. She has a solid background in Economics and Finance. When she is not writing crypto stories, she’s spending quality time with her family and friends or trying out different cuisines in the kitchen.
 

Thomas ClaimCo.in

How the Bitcoin Price Reversal Proves Cryptocurrencies are Immune to Financial Market Shocks

How the Bitcoin Price Reversal Proves Cryptocurrencies are Immune to Financial Market Shocks

Bitcoin prices have reversed again above the critical $6,000 mark.

This has happened much to the chagrin of the naysayers. So many skeptics have said (both in print and on paper) that COVID-19 had imperiled cryptocurrencies. The great thing is that Bitcoin’s price reversal means that it is business as usual for the digital asset. It may even get better than previously thought. The stay-at-home restrictions have led to many unemployed on a global scale. Centralization is failing and new entrants to the crypto-space are just around the corner.

On March 12th, 2020, prices plunged below $4,000. It had little to do with the markets as there were no fundamental movements at the time. BitMEX suffered an attack from hackers. About $750 million was dissipated within a few minutes. The crypto space freaked out. We all know how the crypto space can be so incessantly volatile. That week was just another day in crypto land. In the real world, everyone was flying off the handle as well. The financial markets had gone to bits. The masters of the financial universe had turned to hobos, looking for a place to perch on and perhaps thought that the crypto space was a great place to roost.

They also said that the cryptocurrency world is gone as well. Mass-market psychology doesn’t apply to cryptocurrency markets. The prime reason is that cryptocurrencies currently can never go totally to zero both in quantity and price. Yes, it can go to the negative territory for a minuscule fraction of tokens, but the possibility of recovery always exists from a mathematical perspective. The futures markets cleared earlier this week and things went back to normal. Liquidity was restored and everyone is wondering when Bitcoin will test $10,000. Investors still have confidence in cryptocurrency markets due to their trustless nature. Thus, the “safe-haven” status still stands.

Article Produced By
Christopher Haruna Hamman

Christopher is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.

https://zycrypto.com/how-the-bitcoin-price-reversal-proves-cryptocurrencies-are-immune-to-financial-market-shocks/

Thomas ClaimCo.in

Bitcoin Merchant Resilience Amid Pandemic Surprises Analysts

Bitcoin Merchant Resilience Amid Pandemic Surprises Analysts

Analysts are surprised by the resilience of the bitcoin (BTC) merchant services,

as well as by the lower drop in purchasing than expected. Furthermore, each of the three categories they inspected, reacted in their own way to the coronavirus-caused economic crisis. Blockchain and analytics specialist Chainalysis observed the effects of COVID-19 pandemic on the consumer side of bitcoin – on those people who use their BTC to buy goods and services, instead just to speculate. They looked at three service categories – merchant services, gambling services, and darknet markets – to observe the change of transaction patterns. Chainalysis discovered that the amount of BTC being used in all three service categories dropped "significantly" since March 9, the week of the market crash, but not in an expected way. While spending less in a financial crisis sounds logical, the longer-term trends suggest that this is actually unexpected behavior.

There was a change in the level of correlation for each category, and merchant services have seen their revenue to bitcoin price correlation decline. As these services are a convenient way for people to spend their BTC, when the price is higher, they spend more, meaning that there is usually a high correlation with BTC price."While merchant services purchasing has dropped, it hasn’t dropped nearly as much as we would’ve previously expected, as the correlation between merchant services activity and Bitcoin price has fallen by nearly half," Chainalysis said, adding that these services have proven more resilient than expected. The analysts say that one reason behind the smaller drop in merchant services activity than expected could be that people have continued using their crypto to buy through merchant services those essentials that they can’t buy elsewhere with fiat.

Meanwhile, the correlational relationship has reversed in darknet markets. Now, revenue has become more correlated with Bitcoin’s price in darknet markets, meaning that these markets have had "unexpectedly steep revenue declines since bitcoin’s price began to drop." But, as they had a small inverse correlation with bitcoin’s price pre-crash (meaning, the service receives less BTC as price rises and more when the price decreases), it would've been more expected that they had somewhat higher sales following the drop. Disruptions to global supply chains caused by the pandemic could be causing issues for the darknet market vendors’ business, for example, selling drugs. On the other hand, gambling service have also seen a fall in BTC flows since the week of the crash. However, gambling usage started to drop "some time after the bitcoin price drop, and continued to fall even when bitcoin’s price started to recover." Even in the pandemic, at least so far, the correlation in this category remains as it always was – "virtually non-existent."

Article Produced By
Sead Fadilpašić

Sead is a staff journalist at Cryptonews.com who covers cryptocurrency and blockchain news daily, writes analysis pieces, tests blockchain and cryptocurrency products. He's based in Sarajevo, Bosnia and Herzegovina. Prior to joining Cryptonews.com he was a freelance, also was a journalist for Al Jazeera web. He spends his free time in music studios, recording songs for movies and cinema. Loves to break gadgets so he could fix them, enjoys exploring new music and loves tasty and equally unhealthy food.

https://cryptonews.com/news/bitcoin-merchant-resilience-amid-pandemic-surprises-analysts-6190.htm

Thomas ClaimCo.in

What’s holding Bitcoin back business or consumers?

What’s holding Bitcoin back – business or consumers?

Though Bitcoin started 2020 with a bang, it’s worth taking the start of a new decade

to reflect on the state of the original cryptocurrency. Doing that, we can really only draw one conclusion: it has failed to live up to the hype. Don’t get me wrong. Even over the past few months, we’ve seen some very encouraging news for bitcoin. There have been headlines about rapidly growing institutional adoption, as well as speculation on the rise of crypto in China. All this is great. The problem, especially apparent if you’ve been following the news around bitcoin for a few years, is that headlines like this come up EVERY few months, and bitcoin adoption remains low. Whenever this point is raised, it generates a blame game. Consumers (especially those holding bitcoin) blame businesses for not accepting them. Businesses (and especially those NOT holding bitcoin) say that the currency is simply too risky. Who is right? In this article, we’ll take a look.

The Hype

Before we get into the nuts and bolts of why bitcoin adoption hasn’t hit the levels that some expected, it’s worth reminding ourselves of why businesses and consumers are expected to embrace bitcoin, or indeed crypto more generally. For consumers, the most tangible benefit of bitcoin comes in terms of online privacy. That’s why it was the currency of choice for the Dark Web, and why cryptocurrency bans still lead to rising VPN usage. But here’s the problem: survey after survey has found that whilst consumers claim to care about their online privacy, in reality they appear keen to undermine it given the slightest opportunity. Given this, it doesn’t seem so surprising that many people just pick the easiest way to pay for goods and services, even if this is most insecure.

On the other hand, businesses are supposed to benefit from bitcoin because it offers their customers a more flexible way to pay. Yet many companies seem extremely reticent to start doing this. Not all, of course. Last month, Avnet, credited with being one of the world’s largest distributors of electronic components, said it would enable cryptocurrency payments thanks to a partnership with payment processor BitPay. But here’s the rub: companies saying they will accept bitcoin still makes news headlines. Why is that?

The Reality

In reality, there are barriers for both consumers and companies when it comes to working in bitcoin. So let’s break down the hype, and look at how bitcoin is perceived outside of the crypto community.

For Consumers

There are many reasons why consumers have been reluctant to use bitcoin, and many of them are covered in this excellent article at HackerNoon. In short, bitcoin is still seen as simply too risky for many consumers, not just in terms of the base volatility of the currency, but also due to difficulties in finding exchanges they can trust. This issue of trust is implied within a number of other reasons for slow adoption. Lacking a detailed knowledge of how crypto works, many consumers don’t know the difference between blockchain and cryptocurrency. In addition, in many countries trading in bitcoin is taxed and highly regulated, completely undermining the idea that bitcoin is a “more private” option. Then, finally, there are the hacks. ICO scams hit the headlines on a daily basis, as do stories about crypto-mining malware and ransomware as a service. This means that those consumers who are tech-savvy enough to know how bitcoin works are turned off by the poor level of cybersecurity in the space.

For Businesses

Now let’s look at bitcoin from the opposite perspective: that of businesses. If you look at the history of bitcoin adoption among large companies – and trust me, I have – a depressing trend emerges. Let me show you. In 2014 the travel giant Expedia started accepting Bitcoin after working with Coinbase to make this possible. However, the retailer then quietly stopped taking the cryptocurrency. Then there was Stripe, who also started to accept bitcoin in 2014, and then stopped again in 2018, citing the network’s scalability issues and the resulting decrease in customer’s willingness to pay using the digital currency. Steam started accepting bitcoin in 2016, leading many in the space to raptures. Then – you’ve guessed it – they announced they would stop taking bitcoin payments in 2017, this time due to “high fees”.

These reversals raise a troubling question: why did these companies accept bitcoin in the first place? After all, the fact that they were able to drop this functionality so quickly indicates that consumers were not so happy about paying in this way. In reality, it’s tempting to see these announcements not as business decisions at all, but rather as PR moves. Adult entertainment giant Pornhub launched a cryptocurrency subscription service last year but recently said that crypto accounted for “less than 1%” of it’s income. On the other hand, the site saw it’s organic search rates skyrocket as people came across their names in the media. And that, sadly, appears to be the major benefit for companies of adopting bitcoin at the moment: publicity.

The Solutions

So let’s come back to the question at hand. Are consumers or businesses to blame for the lack of adoption of bitcoin? For consumers, as we already mentioned the most tangible benefit of bitcoin comes as an enabler of online privacy; for businesses, things appear to be a little trickier. In reality, the issues that deter the use of bitcoin are different for both consumers – who worry about security – and businesses – who largely worry about their profitability.

So let’s ask a different, deeper question. Why is it so important that we see widespread adoption of bitcoin? For decades, bitcoin users have been obsessed about buying their morning coffee with Bitcoin and the possibility of huge retailers such as Starbucks accepting it. This is often viewed as “proof” that bitcoin has become a “real” currency, and this is still the way that most crypto news stories are covered. The problem with this dream is that it ignores the benefits that crypto can bring to both consumers and companies. Telling people that there is a new currency they can use to pay for Steam games is great, but in most cases, consumers just see this as arbitrary information. Why pay in bitcoin, when they can pay by credit card?

In short, Bitcoin is going to need a careful process of image management if adoption is going to rise. Instead of stressing that it is “just like other currencies”, journalists need to point out exactly where it DIFFERS from other forms of money. In short, and as we’ve previously pointed out, crypto newsmakers and journalists need to get on the same page, and take the dawning of a new decade as an opportunity to get back to basics. To remember why bitcoin is special, and stop trying to make it like other currencies.

Article Produced By
Samuel Bocetta

Sam Bocetta is a freelance journalist specializing in U.S. diplomacy and national security, with emphasis on technology trends in cyber warfare, cyber defense, and cryptography. Previously, Sam was a defense contractor. He worked in close partnership with architects and developers to identify mitigating controls for vulnerabilities identified across applications and performed security assessments to emulate the tactics, techniques, and procedures of a variety of threats.

https://cryptoslate.com/whats-holding-bitcoin-back-business-or-consumers/

 

Thomas ClaimCo.in

Bitcoin’s Bull Run May Now Immediately Follow Halving Jihan Wu Says

Bitcoin's Bull Run May Now Immediately Follow Halving, Jihan Wu Says

Bitmain co-founder Jihan Wu expects the bull run on bitcoin prices to be delayed following May's Halving.Wu is bullish on bitcoin's outlook, in light of government economic bailouts in response to the Coronavirus pandemic. 

Bitmain co-founder Jihan Wu says the bull run for bitcoin prices may not come immediately after the halving event in May.

Wu, who co-founded and served as CEO of mining rig manufacturing giant Bitmain before stepping down last year, told 8BTC the price run for bitcoin will likely be delayed following the halving. Wu said he was positive about the future of bitcoin, and explained that recent economic policies such as government “quantitative easing” packages could lead to crypto-assets becoming more valuable. Despite the potential, Wu cautioned that bitcoin has a price top like any other asset and would undergo periods of fluctuating growth. 

He said, 

As bitcoin’s market cap grows, its volatility decreases and becomes more stable. That means we may not see abrupt spikes in its price. No matter how high bitcoin goes, one day it will reach a top. Before that, it will see prices [with] flatline growth with some twists in the next few years.

He continued, 

I think the bull this time around may not come immediately after the halving. There likely will be a delay in time.

Wu also disputed the notion that bitcoin serves as a “safe haven” asset against traditional market volatility. Instead, he argued that bitcoin has become intertwined with the broader financial market and responds to similar impacts on global economic stability.

Article Produced By
Michael LaVere

Mike is a financial and cryptocurrency journalist for CryptoGlobe covering the industry since 2017. Mike is an alumnus of the University of North Carolina Chapel Hill.

https://www.cryptoglobe.com/latest/2020/03/jihan-wu-bull-run-may-not-come-immediately-after-bitcoin-halving/

Thomas ClaimCo.in

Biggest Bubble in the Economy Isn’t Bitcoin BTC It’s the Bond Market: Max Keiser

Biggest Bubble in the Economy Isn’t Bitcoin (BTC) – It’s the Bond Market: Max Keiser

Thomas ClaimCo.in

Bitcoin Stalls in the Mid-6000s as Stock Market Rally Continues

For over 48 hours, Bitcoin has flatlined — establishing a tight, less-than-10% range in the mid-$6,000s.

This comes after BTC embarked on a 25% rally from the $5,000s to a price as high as $7,100 that transpired this weekend and early this week, which coincided with a smaller but equally-as-notable increase in the value of gold. Bitcoin’s lack of direction comes as the stock market has rebounded hard. Really hard. Since the bottom near 18,000 points, the Dow Jones Index has rallied to 21,780 as of the time of writing this, marking a jaw-dropping recovery of 20%. Global indices have reflected this move, rallying almost as hard as the Dow.

This surge comes despite record-level unemployment claims around the world; in fact, numbers released Thursday morning revealed that 3.3 million Americans have filed for unemployment over the past week, which is four times higher than any previous record of this metric, and seemingly a sign that Great Depression-level unemployment is a possibility. So, it seems that Bitcoin seems to be mostly nonreactive to news regarding traditional markets or traditional markets themselves, leaving many wondering what’s next for the cryptocurrency.

Bearish Below $8,000

Despite the rally, most seem to be convinced that this is but a deviation from the $5,000s, where a majority of analysts expect Bitcoin to accumulate around prior to a bull market breakout. Indeed, in a recent analysis published to TradingView,  cryptocurrency analyst Filb Filb explained that as long as Bitcoin remains below $7,000 and $8,000, it is leaning bearish. He cited the fact that there exists likely the “worst cluster of resistance seen since the bear market of 2018” at $8,000:

  • The 200-day moving average.
  • The 100-day moving average.
  • The 50-day moving average.
  • The 20-month moving average.
  • Bitcoin’s 61.8% Fibonacci Retracement of the February high to the $3,800 bottom.
  • And the yearly pivot level.

Furthermore, Nunya Bizniz on March 26th noted that Bitcoin’s weekly candle is currently below the bottom band of the non-linear regression curve that has acted as support for Bitcoin for over eight years of price action, suggesting that the BTC’s secular growth trend may be coming to an end, at least for the time being.

Long-Term Outlook is Anything But Bearish

Some have ignored the short-term directionality entirely, arguing that whether it be $4,000 or $7,000, Bitcoin’s fundamental strength is only growing. Per previous reports from Blockonomi, Galaxy Digital founder Mike Novogratz told CNBC on Monday that he has been buying the dips in both gold and Bitcoin for one key reason: central banks have started to “run amok” with their policies amid these times of economic distress.

He explained further:

If there was ever a time — debasement of fiat currencies, monetization of trillions of dollars of debt, this is the time for Bitcoin.

This was echoed by Placeholder Capital’s Chris Burniske, the analyst who coined the term “crypto-assets.” He wrote on Twitter that this crisis “will pass, and crypto’s fundamentals will have strengthened through it.” Burniske highlighted how “new technologies rise as old systems break, and often it takes a crisis to reveal the flaws of the old system in full,” presumably referencing the issues fiat money and financial markets have seen as they’ve come under the record-level economic stress posed by the coronavirus outbreak.

Article Produced By
Nick Chong

Since 2013, Nick has shown interest in Bitcoin and cryptocurrencies. He has since become involved in the industry as a full-time content creator, working for NewsBTC, Bitcoinist, LongHash, among other outlets. Aside from covering the news, Nick is a Creative at Taiwanese technology company HTC.

https://blockonomi.com/bitcoin-stalls-in-the-mid-6000s/

 

Thomas ClaimCo.in

Coronavirus the Halving and a Price Drop: Bitcoin Mining Marches On

Coronavirus, the Halving and a Price Drop: Bitcoin Mining Marches On

mining and coronavirus

CoinShares, a Jersey-based asset management firm with offices in London and New York

that provides advice and other services for investors, released a statement on the state of Bitcoin mining during the global uncertainty caused by the coronavirus, ahead of a planned, more thorough June 2020 mining report. In it, CoinShares’ research director Christopher Bendiksen wrote that the current talk of a possible mining “death spiral” due to coronavirus-based lockdowns makes for dramatic reading, but is not at all based in reality.

“‘Mining death spirals’ do not actually happen in real life,” Bendiksen wrote in the statement. “They are highly theoretical edge cases without any historical real-world precedent … Mining is here to stay.” Confidence in the mining space and in bitcoin generally, despite economic uncertainty around the world, is high at the firm. “Bitcoin is arguably the only financial asset that can operate remotely — nobody needs to go to work to make bitcoin work,” Danny Masters, executive chairman of CoinShares, wrote in a supplementary statement sent to Bitcoin Magazine. “Nobody needs to fill an ATM machine. While things look bleak for everything, I can’t think of a better asset to buy than bitcoin.”

Difficulty, Block Frequency and Hashrate

The cost of Bitcoin mining is largely a function of the difficulty — a dynamic metric determined by the protocol itself that can adjust both up and down to keep block times at 10 minutes on average. The difficulty has reset downwards many times — sometimes dramatically as the result of a pullback in price, as in November and December of 2018 — but the network has never ground to a complete halt or even come anywhere close to doing so. “There is no price level that could cause Bitcoin’s emission rate to increase,” reads Benedickson’s statement. “When the dust settles on the current financial crisis, the Bitcoin monetary system will have created exactly as many bitcoins as originally intended.” In essence, the Bitcoin mining difficulty adjustment keeps Bitcoin block frequency steady, no matter the amount of total network hashrate.

What About the Halving?

“If prices do not recover, the hashrate will fall — and when the halving hits, it will fall again,” wrote Bendiksen. “This is not a problem for Bitcoin, nor is it unprecedented.”  And it’s not always the biggest bitcoin mining groups that will survive a major bitcoin price recession, contrary to what you may be hearing. It will be the groups that have the cheapest energy costs and the newest, most efficient hardware. “The halving is still a couple months away and many miners are already closing up shop,” Bendiksen said in a follow-up interview with Bitcoin Magazine. “So, at the time of the halving, we will likely be in a completely different difficulty environment than now. Recent estimates show that as much as 25 percent of the peak-level hashrate may already have been turned off.”

While CoinShares suggests that post-halving mining will be different than the current and near-future mining environment, Bendiksen does believe today’s status offers an insightful window. “For all of those who are worried about the halving, this is a perfect prelude because the end effect on miners is the exact same,” he wrote in his statement. “Hence, the hashrate dynamics we’re likely to see in the upcoming weeks will be an excellent parallel to those we might also see after the halving in May.” Bendiksen acknowledged that some of the higher-cost miners may drop out after the halving, but he also sees mining companies stabilizing and building for the foreseeable future.

Building the Mining Infrastructure of the Future

Meanwhile, Blockstream Mining is quietly building its mining business with facilities in Quebec, Canada and Georgia, USA, with over 300 MW of energy and a thriving colocation service offering equipment, space, bandwidth and power rental for miners who can benefit from inexpensive energy without needing to negotiate separately with local authorities. According to Blockstream CSO Samson Mow, the company has taken steps to be ready for the halving, come what may. Despite the current turmoil, it is focused on the long term. “For Blockstream’s mining operations, our electricity and operational costs are low enough that we can outlast most miners and be the last ones standing,” Mow told Bitcoin Magazine in an interview. “Also, we’ve mined bitcoins for quite some time and we HODL for the medium term, so a price drop during the halving would actually have no impact for us.” Mow noted that, while it’s hard to predict the price, he believes some inefficient miners may need to shut off, while most miners will be fine through the halving.

“I think the bitcoin price will recover to a point where, post-halving, it will still be profitable to mine BTC,” Mow said. “Even if that doesn’t happen, it’s not likely we will see a massive drop in hashrate. Many miners are already on the latest generation of equipment and have already recouped those costs, so they only have to deal with opex [operational expenditures].” CoinShares, a Jersey-based asset management firm with offices in London and New York that provides advice and other services for investors, released a statement on the state of Bitcoin mining during the global uncertainty caused by the coronavirus, ahead of a planned, more thorough June 2020 mining report. In it, CoinShares’ research director Christopher Bendiksen wrote that the current talk of a possible mining “death spiral” due to coronavirus-based lockdowns makes for dramatic reading, but is not at all based in reality.

“‘Mining death spirals’ do not actually happen in real life,” Bendiksen wrote in the statement. “They are highly theoretical edge cases without any historical real-world precedent … Mining is here to stay.” Confidence in the mining space and in bitcoin generally, despite economic uncertainty around the world, is high at the firm. “Bitcoin is arguably the only financial asset that can operate remotely — nobody needs to go to work to make bitcoin work,” Danny Masters, executive chairman of CoinShares, wrote in a supplementary statement sent to Bitcoin Magazine. “Nobody needs to fill an ATM machine. While things look bleak for everything, I can’t think of a better asset to buy than bitcoin.”

Difficulty, Block Frequency and Hashrate

The cost of Bitcoin mining is largely a function of the difficulty — a dynamic metric determined by the protocol itself that can adjust both up and down to keep block times at 10 minutes on average. The difficulty has reset downwards many times — sometimes dramatically as the result of a pullback in price, as in November and December of 2018 — but the network has never ground to a complete halt or even come anywhere close to doing so. “There is no price level that could cause Bitcoin’s emission rate to increase,” reads Benedickson’s statement. “When the dust settles on the current financial crisis, the Bitcoin monetary system will have created exactly as many bitcoins as originally intended.” In essence, the Bitcoin mining difficulty adjustment keeps Bitcoin block frequency steady, no matter the amount of total network hashrate.

What About the Halving?

“If prices do not recover, the hashrate will fall — and when the halving hits, it will fall again,” wrote Bendiksen. “This is not a problem for Bitcoin, nor is it unprecedented.” And it’s not always the biggest bitcoin mining groups that will survive a major bitcoin price recession, contrary to what you may be hearing. It will be the groups that have the cheapest energy costs and the newest, most efficient hardware. “The halving is still a couple months away and many miners are already closing up shop,” Bendiksen said in a follow-up interview with Bitcoin Magazine. “So, at the time of the halving, we will likely be in a completely different difficulty environment than now. Recent estimates show that as much as 25 percent of the peak-level hashrate may already have been turned off.”

While CoinShares suggests that post-halving mining will be different than the current and near-future mining environment, Bendiksen does believe today’s status offers an insightful window. “For all of those who are worried about the halving, this is a perfect prelude because the end effect on miners is the exact same,” he wrote in his statement. “Hence, the hashrate dynamics we’re likely to see in the upcoming weeks will be an excellent parallel to those we might also see after the halving in May.” Bendiksen acknowledged that some of the higher-cost miners may drop out after the halving, but he also sees mining companies stabilizing and building for the foreseeable future.

Building the Mining Infrastructure of the Future

Meanwhile, Blockstream Mining is quietly building its mining business with facilities in Quebec, Canada and Georgia, USA, with over 300 MW of energy and a thriving colocation service offering equipment, space, bandwidth and power rental for miners who can benefit from inexpensive energy without needing to negotiate separately with local authorities. According to Blockstream CSO Samson Mow, the company has taken steps to be ready for the halving, come what may. Despite the current turmoil, it is focused on the long term.

“For Blockstream’s mining operations, our electricity and operational costs are low enough that we can outlast most miners and be the last ones standing,” Mow told Bitcoin Magazine in an interview. “Also, we’ve mined bitcoins for quite some time and we HODL for the medium term, so a price drop during the halving would actually have no impact for us.” Mow noted that, while it’s hard to predict the price, he believes some inefficient miners may need to shut off, while most miners will be fine through the halving. “I think the bitcoin price will recover to a point where, post-halving, it will still be profitable to mine BTC,” Mow said. “Even if that doesn’t happen, it’s not likely we will see a massive drop in hashrate. Many miners are already on the latest generation of equipment and have already recouped those costs, so they only have to deal with opex [operational expenditures].” 

Investors Are More Cautious But Still Interested in Bitcoin Mining

Ryan Porter, head of business development for mining-focused financial services and brokerage firm BitOoda, was busy fielding inquiries about new North American mining opportunities in December 2019. Now, he said, he’s still getting inquiries but potential mining companies are more cautious and want to lock in competitive energy pricing. “Overall, what we’re seeing is the miners that were well positioned to be profitable after the halving are still well positioned now, where the miners that would have needed to shutter operations have had to fast track those plans,” Porter told Bitcoin Magazine in a phone interview. “We’ve seen hashrate fall precipitously as now unprofitable mining rigs are being taken offline, and conservative operators who were thoughtful about managing their bitcoin price risk are now looking to purchase hardware at distressed prices.”

Porter is confident that the best-managed mining operations that have inexpensive power sources and efficient computers will survive the halving. What he’s seeing is the next stage in the evolution and maturation of the mining industry. “Where we are starting to see a change in planning for miners is how they’re approaching risk management,” he added. “We had previously engaged with miners on implementing BTC price-hedging programs, and we’ve had quite a few of those firms reach out to us over the past week to start a meaningful risk management engagement.”

The CoinShares team is confident that bitcoin and its critical mining industry will ride out the coronavirus storm. In his interview with Bitcoin Magazine, Bendiksen noted that, unlike the fiat monetary system, the bitcoin system is “run coldly and unemotionally by a network of computers according to pre-set rules.” “These computers never need to work from home, never get sick, scared or panicked and can not be influenced to print money by charismatic or powerful politicians, even in the most challenging times,” he said. “They simply execute their code as prescribed, no matter what is happening in the world.”

Article Produced By
Jessie Willms

Jessie Willms is a planet earth based former government and political researcher and communications officer helping to document the FinTech revolution and its impact on traditional institutions and governments.

https://bitcoinmagazine.com/articles/coronavirus-the-halving-and-a-price-drop-bitcoin-mining-marches-on

Thomas ClaimCo.in

COVID-19 Causes Bitcoin Value Drop to 4000 Starting a Zig-zag Action Could Set a Three Month Lateral Market

COVID-19 Causes Bitcoin Value Drop to $4000 Starting a Zig-zag Action Could Set a Three Month Lateral Market

COVID-19 is making its way around the globe, so markets have been shedding value at a fast pace.

Bitcoin value is not immune to this as it has disrupted people’s normal activities which can include trading online. Bitcoin shines in that unlike cash and many fiat transactions everything can be done without handing over cards or exchanging paper/plastic money covered in germs. Contactless payment, send and receive without ever having to be face to face. Much fiat is also digital but still relies on cards, checks, and cash for the final exchange in many cases.

All markets are going to be volatile as the world goes towards finding out just how COVID-19 will affect people. This uncertainty along with people not being able to go to work in many cases will keep this trend going. It will continue until there is more information on the long-term effects on humanity.

Long-term Analysis

Trends dropped the price to the $4000 support level, as the distribution area settled above $7000 consolidating in the sell-off the range. After quotes and technical indicators synchronized, volatility should arise in a zig-zag pattern. Following Elliott Wave Theory, the action should bring values back up to $6500. As international trade gears back to normal business, external factors and news will bring a natural integration of Bitcoin into global portfolios as an accepted asset. On the other hand, when the bullish sentiment gets back, values would go lateral between $4500 and $6500. Continuing until halving happens in May.

Mid-term Analysis

After dropping to $4000 support levels, prices could balance as offer plus demand forces start a new side-ways movement. The movement could run between $4500 and $6500. According to Gann Angles Theory, the first movement took quotes to $5500. Some corrective movement would be expected. If this forecasting is confirmed, a new lateral market would balance the trend for about three months. Preparing a bullish breakaway signal for April after the halving, when prices should try to overcome the mentioned resistance. If backed by good News and possibly some new global trade scenario, which could include Bitcoin as part of institutional financial tools to be in consideration.

Short-term Analysis

The Japanese Candlestick fairy Analysis confirmed that the crows got stronger than ever, kicking the demand soldiers out from the last fairy battlefield. This battlefield is defined between $8000 and $10000, going directly to $4000, to end the 5th Elliott´s bearish wave. Following the same theory and backed on Fibonacci retracement numbers, the next stage could be a zig-zag ABC pattern to the upside.

It should have prices heading near $6500. An intermediate sustaining area arises as plenty of volatility is starting, to wait on halving before Soldiers reorder themselves to clash against the crows. Doing this they might have a chance to prevail. The technical indicators finally synchronized with prices. Even with those grounds, they are only available to defend $4000 levels as support. Forcing crows to enter a new battlefield for 3 months, between $4500 and $6500. Please keep safe while COVID-19 sweeps the world. The markets will be volatile and keep being that way for the next few months. The bitcoin miner reward halving is also going to have an impact in the near future. When the emission rate of new coins is halved it should have a positive effect on bitcoin value. Yet keep in mind it’s effects may be muted for months until the world finds it’s new normal in living with this new virus.

Article Produced By
Ramiro Burgos

Ramiro is a technical analyst specializing in stocks, futures, options and Bitcoin. He provides weekly analysis on the bitcoin price for Bitsonline. Based in Buenos Aires, Argentina, Ramiro has worked in the financial industry since 1987, with his technical analyses appearing in local and global news publications.

https://bitsonline.com/covid-19-causes-bitcoin-value-drop-to-4000-starting-a-zig-zag-action-could-set-a-three-month-lateral-market/

Thomas ClaimCo.in

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