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In February, bitcoin data center Virginia, Virginia Beach connection for data mining of the bitcoin cooling fans. Bitcoin lost a lot of value this month. Financial experts aren’t sure why. They do not determine the popular encryption currency and what will happen next.
Prices at the weekend, fell to below $3600 than two weeks before the low price of about 40%. On Monday, prices continue to fall, but closed up slightly on Tuesday. Then they soared to $4300 on Wednesday, although this is far from the crypto currency for several months before the middle of November of $6000 or more. Bitcoin is not dollars or gold and other physical objects. They exist only in the internet. Bitcoin users through called distributed public ledger blockchain consistent for the verification of transaction. Bitcoin is just hundreds of so-called encryption in a currency, it has many of the same characteristics of dispersion. Over the years, bitcoin especially attracted a lot of attention. It is the first and most popular encryption currency. Is a bright spot in December 2017, bitcoin prices soared to the highest point of the history of nearly $20000 each.
See the price rise, investors have joined the ranks. Bitcoin trading site Coinbase reported that the “explosion of interest in digital currency”. Another exchange Binance said it has registered 240000 users in 1 months in an hour. It is difficult to estimate how many people are there in the crypto currency money, but a study from the University of Cambridge last year showed that the figures in the 2 million 900 thousand to 5 million 800 thousand. 5 months of this year, Chris McCann estimates that global investors cryptocurrencies users in between 2000 million to 3000 million. Because the price fell from a peak at the beginning of this year, financial experts believe that the difference is that bitcoin is a bubble burst. Experts said that the downturn could start a couple of weeks ago is related to some different factors.
Some reports blamed investors uneasy about due to the recent bitcoin bitcoin split was called bitcoin bitcoin cash, the encryption currency in market capitalization ranked fourth. Different bitcoin proponents disagree on the cash they want to update, lead to two different forms of encryption currency. “Bitcoin cash split down the catalyst, but I don’t think this is the only responsibility,” Craig Elam, senior market analyst Oanda NPR told. “Bitcoin in a few months looks very fragile,” he said in an email. “Every rose are weaker than last time, which indicates that the mood became more negative.” The LongHash website will drop this month due to currency exchange encryption OKEx related issues with Hongkong. Another possible clue is to calculate the manufacturing capability of bitcoin. It is called “hash rate”. According to the Blockchain.com tracking, it soared in the past year, from 8 months to 10 month highs at the end.
Bitcoin manufacturer, also known as miners, use a large amount of computing power and power to solve complex mathematical problems supporting block chain. They gained a new bitcoin reward. But if the bitcoin price is lower than its manufacturing cost, cost like electricity, so the miners might turn the use of alternative currency or completely abandon the encryption. Hash rate began to decline in the past few weeks, suggesting that bitcoin mining may become uneconomical for some people. Although from the end of 2017 highs, bitcoin’s value is still higher than to the level of early. According to CoinMarketCap.com data, it began in 1 months to 2017 years, the price of $963.66. Duke University (Duke University) Professor of finance Campbell Harvey (Campbell Harvey) said: “if you are in a year and a half ago bitcoin investment, then you are profitable. If you are in a price of $19000 of investment, it will be a disastrous investment.”
Analyst Elam said that from the beginning of 2017, bitcoin prices still rose by more than 300% this fact or “represents a considerable income, or there will be potential downside more in future, and added,” I think this may be the latter.” In addition to any recent development, Harvey said bitcoin is not stable. “Bitcoin, you will have some people think fundamentally it is worth zero. Other people think that fundamentally it soon will be worth $1 million a coin, “he said. “Therefore, this is a huge disagreement and uncertainty. It is transformed into extreme fluctuation.” In contrast, so far this year, the Dow Jones Industrial Average fell in two days at least 4%. In one transaction, bitcoin for at least 50 days lost at least 4%. Harvey said, bitcoin volatility is four to five times the stock market.
Editor: Seinfeld / Reviewer: Han Tianyu, the first exclusive 100, plagiarism!