According to the coinmarketcap platform, bitcoin Friday, another year low, down nearly 10%, temporarily reported $3404.99. Analysts claim that the $3500 support level, and the speech this week, bitcoin market will bottom again burst. As of now, bitcoin from the end of 2017, a historical high of nearly $20 thousand has dropped by about 80%, dragged down the digital currency.
Now analysts predict that bitcoin could fall to $1500, than the current level fell 60%. Bloomberg analyst Mike McGlone wrote in the report, “bitcoin continuously dropped to $1500 almost no insurance can observe”.
The bitcoin fell fuse is November BCH (bitcoin cash) second hard fork. This time, BCH faces a hard bifurcation, is the essence of Craig Steven Wright (Australia is called “Macao Satoshi”) spoiler, BCH community face split situation, triggered bitcoin selling.
After a few months after the relatively stable, bitcoin volatility intensified in November, fell to about $3970 from $6340, down nearly 37% single month record within 7 years of the steepest monthly fall.
At the same time, regulators are gradually tightening supervision of bitcoin, bitcoin exacerbated the decline.
A few weeks ago, the US Securities and Exchange Commission SEC first announced its decision for civil penalties tokens ICO and Parago financing, Airfox Coin, the two companies issued by ICO has not been registered as securities, the need to pay a fine of $250 thousand to compensate investors.
SEC chairman Jay Clayton said earlier this year, in addition to bitcoin and etheric coins, all digital coins or tokens are needed to be regulated securities. This caused the market panic on the strict supervision. Last week, Clayton said, in order to protect the interests of investors, not only pay close attention to the approval of a bitcoin trading fund.
The European regulatory attitude is not optimistic. Benoit Coeure, executive director of the European Central Bank said in the bank for the bank for International Settlements BIS spoke a few weeks ago, bitcoin is the combination of foam, Ponzi scheme and environmental disaster”.
Since late October, NVIDIA and digital currency “AMD mining business is poor, itself indicates weak demand for digital currency. Creative Planning, CO chief investment officer Peter Mallouk told Bloomberg said, NVIDIA shares fell a symbol of digital currency fueled demand subsided, “chip giant’s share price is poor, and other digital currency bitcoin canaries in the coal mine”.
Other encryption currency bitcoin mining, can be understood as per system over a period of time a math problem, whose first figure out a solution, who will get bitcoin reward, people put this process figuratively as mining.
But in fact the mining equipment available to everyone, even our computer graphics can be competent for this job, but the efficiency is not too high. Specializing in bitcoin mining work is bitcoin miners, they buy specifically for mining or graphics chip machine, the machine 24 hours a day to do this operation to get bitcoins.
Electricity in the process of the investment is huge, accounted for the most big cost. In order to reduce the cost, the miners will be stored in the machine China western energy rich, open up special field to dig coins. Early in the bitcoin mining machine, revenue was very high.
And as more and more people enter the industry as the price of the currency soar, they face competition and risk. The tumbling of the bitcoin was called a “mine disaster” because of the fall in the cost of mining.
According to Tencent, successive decline, bitcoin prices have more than one machine breakdown cost, namely the mining income is insufficient to pay the fee and management fee. According to one of the largest mineral pool pond data, early 2 million of what M3 machine had arrived off the price.
Some small and medium-sized mines, in the currency price continued to decline, has been unable to maintain, but its second-hand resale liquidation. In most types of ore miners groups of ants of popular S9, a year ago in the market speculation in the highest to 3 in case of Taiwan, in the currency of successive decline in second-hand price, minimum sale price is only 600 yuan.
An old miner told the Tencent “periscope”, from the time point of view, the last 11 months after the admission of the miners, almost could not escape the fate of lamb. One of the most miserable, is in January 2018 the wave of admission.
Then, bitcoin prices in a year long time the hurricane, to 120 thousand yuan (about $20 thousand) to the peak, “production” bitcoin mining machine, factory price turned two or three times still not grab arrival. Some of the miners in Xinjiang in order to get the machine to sell their car to send money, even to the housing, as long as they believe in “machine to hand, spend all earn back”.
In the past 10 months, even when they have no money to buy the machine. The second-hand vehicle prices fall further, “the equivalent of fixed assets and loss of 90%, can be said to lose everything, the old miners evaluation.
In the past 4 years, the miners face is more complicated: the market circulation of bitcoin more 400 million pieces, the circulation market value is more than tens of thousands of yuan, to cash exchange many thousands of.
The new generation of miners rarely Tun coins, the emergence of a large number of exchanges, to provide them with financial instruments more and more, learn to hedging lock ahead of earnings, is one of the essential skills they live in a bear market. Bitcoin factory production mode, upgrade to the financial model.
Hedging, in simple terms, in the spot market and futures market at the same time the same amount but in the opposite direction trading activities. The use of futures and spot prices with up and down the establishment of hedging principle, use futures to fill the spot the loss of profit.
For example, next month I output 30 coins, but a month after the currency price in accordance with the trend is likely to continue to fall 10%, then I will exchange in the air under a single, sold at current prices, a month after the delivery of 30 yuan.” Jin Xin explained, so you can lock the currency income, and not to bear greater losses in the stock market fell.
But the miners groups frequently hedging operations, let them consciously or not, has become the biggest force in short bitcoin.
(self: Wall Street horizons Tencent Chinese economic network)