Bitcoin crash, end to pro was snatched from the jaws of death?

What are the reasons for bitcoin crash?

For this reason Public opinions are divergent., bitcoin prices plummeted, the main view is as follows:

1. bitcoin cash (BCH) caused by war is hard bifurcation

Many people think that BCH bifurcation are the main reasons for bitcoin crash.

The bifurcation hard to complete within 11 months 16 days early in the morning, but BCH controls a large count force Australia the Congxiang split again BCH, and Wu Jihan camp playing is the battle to compete for dominance BCH. The Macao Cong and Wu also so Jihan originally used to dig bitcoin is switched to BCH, which directly leads to the decrease of BTC overall stress, but also indirectly led to a decline in the price of bitcoin.

“The root of the decline is the loss of confidence in the bear market, the fuse is in a BSV BCH bifurcation regardless of economic interests, burn to attack the BCH backbone, make people doubt the anti attack capability of the password to the center of the currency.” Industrial and Commercial University Of Chongqing Research Center Director Liu Changyong said the economic chain block.

Pan City Holdings chairman Chen Weixing is adamant that BCH bifurcation hard is the main reason, bitcoin fell he said: “it (Wu Jihan) and the Macao Cong caused the market to worry about messing around. Many people do not understand bitcoin, hashrate became everybody may understand the index, BCH BTC is less in battle, will cause panic and sell.”

This is a war, many people think it is the “fairy fight and suffer mortal”!

2. OKEx BCH futures futures delivery in advance

In addition there are a lot of people think, the bitcoin fell is the direct cause of futures exchange system error OKEx, resulting in a large number of automatic quantification procedures zapan stock, market panic has been detonated.

In November 14th 5 pm, on the platform of OKEx BCH futures contract delivery in advance, the transaction price is not in accordance with the spot price, but according to each contract the last transaction price calculation. When the BCH stock index futures is $500, and $408.

(OKEx explains why early delivery in public)

OKEx’s decision led directly to many investors losses. Therefore, some analysts have pointed out that the night of November 14th, the etheric square, Wright coins, EOS and other mainstream currency futures have liquidity buying dried up, full of panic selling. While bitcoin will inevitably receive spread, go on the road to collapse.

3. ICO tighter supervision situation

According to “the Wall Street journal” reported on November 16th, the U.S. Securities and Exchange Commission on Airfox Paragon and Coin Inc two companies were crypto currency civil penalties, this is some encryption is an important reason why analysts believe bitcoin prices plummeted.

In the United States Securities Regulatory Commission requirements, Airfox ICO and Paragon two companies promised to the ICO token registered as securities, and refund the principal investor.

This news is tantamount to many ICO projects is a major blow. The United States regulatory action is equivalent to release the signal of ICO financing project party rectification liquidation. In this context, the best way is to a lot of projects, through the ICO financing to bitcoin and selling into the etheric Fang yuan. This also leads to a digital currency market crash.

(SEC tweets screenshot)

4. dark net destruction

In terms of bitcoin, another fell factors, from the secret dark network.

In November 15th, a well-known dark web server hosting provider Daniel ‘s Hosting by unknown hacker attacks, more than 6500 website data is deleted. Daniel ‘s Hosting staff said that hackers use the correct account name and password login backstage, and delete all accounts. Because of Daniel ‘s Hosting’s website data backup, the dark web site content usually cannot recover.

KnownSec security expert Pan Shaohua said, KnownSec dark network radar data show that the number of active site dark net declined sharply since November 15th, now from 11000 fall to about 5500, almost cut.

“Bitcoin currency price fell, and the demise of many dark web site, may have a certain relationship.” Often visit the dark network hackers say.

After bitcoin plummeted skyrocketing history will repeat itself?

In multiple factors, bitcoin currency falls again, in the circle of people fleeing panic on the occasion, there are a lot of people began to review the bitcoin price history, ready to buy the dips.

In 2008, the birth of bitcoin.

In May 21, 2010, bitcoin because of the history of the most expensive pizza “event has the initial price of $0.003.

2011 years 4-6 months, bitcoin prices soared to $32, compared to the initial price of about 10666 times.

Soon bitcoin prices collapse, fell 94%, finally stopped at $2, this is the first time in the history of bitcoin crash.

2013 years 4 months, bitcoin prices rushed to $260, is 86666 times the initial price.

Subsequently, the “Mentougou incident” resulting in bitcoin prices fell to $40, down 85%. This is the second time in the history of bitcoin crash.

11 2013, bitcoin prices rise again, reaching US $1200! This is 400 thousand times the initial price.

In January 2015, bitcoin fell to $150, compared with the previous highest point, a decline of 87.5%. This is the third time in the history of bitcoin crash.

2017 years 12 months 18 days, bitcoin prices reached an all-time peak of $20000, compared to the initial price rose 6 million 660 thousand times.

In December 31, 2017, bitcoin prices quickly fell below the $11000. The decline since then has continued to 2018 year 8 month, bitcoin prices hovering at around $6000, compared to the previous wave peak fell more than 70%. Until November 20th, is a short-term fall below $4100.

(source: Fire currency network)

The traditional financial investment strategy team Goldman had pointed out in the report of August, we expect to maintain the current encryption currency will not have value……. Cryptocurrencies will further decline in future.” Many authoritative analysts for bitcoin slump have also said that the seemingly tragic fall may be just a beginning, the future price of bitcoin may even fell to $1500.

Over the past nine years, the field of encryption currency carried out 4 major adjustments. When the currency has plunged ninety per cent of the cases, there are many optimists think this, even if bitcoin fell below 2000, the market still has hope. At present, bitcoin fell from $19 thousand and 500 to $4050 or 79%, is a major adjustment in the minimum range of all. Therefore, it is not bitcoin high light moment, nor bitcoin’s end of the world.

Bitcoin and other digital currency while not real money, but it does not mean that they have no value. Bitcoin function is the most important point of the paid circulation, especially in super large transfers, bitcoin has more advantages than traditional bank. As for the value function, bitcoin has been in a certain range of cognitive consensus. In addition, the first two years of market boom has also proved that other digital currency bitcoin has become one of the many choices for investors.

EToro analyst Mati Greenspan tweets said: “please relax, don’t just pay attention to short-term events, want to view the overall situation. Since the 1 2017 years, bitcoin rose more than 500%. This is just a callback.”

The blockchain expert Hong Shuning said: bitcoin is a digital gold, with a store of value and the means of payment function, stable currency is encryption of the currency market, this point has not changed, will not change. To calculate the market will get rational recovery after the end of the good long-term bitcoin and the entire market trend has not changed.

The United States is more authoritative analysis firm Altcion report shows that if the market performance in the current price range is strong, and into several months of consolidation period to prove its stability, in the first half of 2019 interim encryption market is likely to recover.

Block chain blessing, bitcoin dies?

In any case, this authoritative optimism, no doubt to the jittery circle has brought a slim chance of survival. In fact, may exhibit greater confidence in the people who truly understand bitcoin. Even if there is no authoritative opinion, from the given block chain bitcoin bottom support for bitcoin, this has been a decade of magic currency will not die easily.

Block chain technology is a kind of collection and utilization to the center to maintain the reliability of the collective trust data thin technology solution, a credit certificate encryption technology based on computer is irreplaceable. The core block chain is potential characteristics of distributed database and how to improve transparency, safety and efficiency. While bitcoin is essentially a set of cryptographic algorithms, is one of the block chain technology application.

From the global policy and development situation, has become the key technology of each block chain countries compete to develop. From committed to human digital asset security block chain team MSC to have more than 90 blockchain patents, ranking first in the world to Alibaba, to create “block chain” Chinese Hangzhou to use block chain technology to help refugees in Africa that the United Nations and so on phenomenon from the efforts are not difficult to see, the block chain is gradually into the global development.

Ma Yun had clearly said: “I personally very optimistic about the blockchain…… I think the change of the whole block chain technology is turned upside down, the block chain is not a bubble,…… Block chain is a great tool and application of open digital financial gold, is an age of data privacy and security solutions.”

Although the application scenarios block chain technology is not universal, but with the technical team in all areas of research and practice, the enormous potential of the blockchain will trigger. While bitcoin as the first application on behalf of the blockchain, has been the market test for 10 years, when there is a change, but also always snatched from the jaws of death! We have reason to believe that, through the winter, bitcoin will once again usher in the spring!

(author: youyou finance, content from the chain have open platform content too “; this paper represents the views of the authors and do not represent the official position of the chain too)

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