The superposition of multiple factors, bitcoin slump low innovation

Recently, bitcoin circle ushered in the coldest season, and continues to spread panic. In recent weeks bitcoin has plunged 30%; other encryption currency also sad day, in recent days, EOS fell 13.88%, the etheric Fang fell 11.1%, Wright coins, currency and other mainstream encryption reboxetine currency prices also fell to varying degrees.

For a time, money Starving people fill the land. circle. So, caused the currency circle cold what are the reasons?

Strict supervision plummeted

The reason is not caused by unilateral bitcoin crash, in addition to long sideways to the market confidence consumption and lack of market support funds, a sudden factor is the impact of the United States began to hit the ICO.

According to “the Wall Street journal” reported on November 16th, the U.S. Securities and Exchange Commission (hereinafter referred to as SEC) recently released on the official website announcement, said on CarrierEQ Inc. (Airfox) and Paragon Coin Inc. for a civil penalty of two ICO projects. The contents include: according to the time of purchase tokens in dollars valuation returned to investors to be legitimate securities registered; token; a report to the Committee at least annually; pay a fine of $250 thousand.

The same day, SEC released “on the digital asset securities issuance and trading statement”. In the announcement, ICO token is regarded as unregistered securities. Since then, the virtual currency has not opened to stop the biggest round of adjustment, seriously affect investors confidence for encryption currency.

Bitcoin cash (BCH) hard trading market turmoil triggered bifurcation

Another reason for causing the sudden collapse of bitcoin, the media reported that largely bitcoin cash (BCH) caused by hard bifurcation.

What is hard bifurcation? Simple, hard currency encryption bifurcation system upgrade, is a very normal thing. But because of the block chain node to the center of the large, when a new version of the software, not all nodes are willing to upgrade, not necessarily all of the nodes can be timely response. According to the updated block chain is compatible with the old block chain, the bifurcation is divided into “bifurcation hard” and “soft bifurcate” is not compatible with hard branch.

Bitcoin cash bifurcation in the past few weeks have been a hot topic. 11 month 15 days, self proclaimed Nakamoto, founder of Australian CSW and bit Jihan Wu a BCH bifurcation of war. Finally, in the Wu Jihan win temporarily ended.

The gods fight, the people suffer. The war and its consumption is, in a certain period of time consumed to BTC stress, caused by the stage of stress wave. These fluctuations make bitcoin holders worried about bitcoin attacks will become a possibility, which makes the risk aversion rise, the sell-off intensified. In November 15th the day bitcoin prices branch, suffered a cliff downwards, closing $5460.17, the highest in nearly 13 month low.

The progress of chain project to slow the development of the market structure is not a

2018 is known as the “public chain first year”, the global emergence of hundreds of the chain project competition, but this round of boom quickly fell into the cold pond. Known as the “public chain of” king of the etheric Fang drop altar, piecewise expansion progress has been slow, prices plummeted ETH. EOS through the DPOS mechanism which greatly improve the efficiency, but a lot of people think that the sacrifice of mechanism design to the center of the possibility of bribery and corruption is doomed. At the same time, the ecological design also used a high threshold of new users in the door, the user growth rate exist great uncertainty.

The existing public square chain, Ethernet appeared to decline, EOS has not yet become the ecological climate, many emerging public chain remaining, yet EOS and par projects. The chain project development progress is slow, to a certain extent has shaken confidence in the prospects for the development of the blockchain, impact on the currency is not a small circle.


Regulation against ICO, BCH bifurcation of public events, chain development progress is far better than expected, these three reasons led directly to the recent bitcoin prices fell sharply. But a review of bitcoin history, you will find it is very normal for up and down. Although the current market is dismal trend, there are still many experts called for, hope that we can not only pay attention to short-term events, to the eye view of the overall situation. Think about last year’s surge, since January 2017, bitcoin rose more than 500%; look at this year’s slump, this is just a callback.

Early LBank investor Zhang Hua said publicly: bitcoin fell below $5000 is not the worst thing I’ve ever seen. In 2013 2014, the market is more difficult than now, some inevitable test so now experienced only coins ring change.

Today, of course, is a difficult time for bitcoin, but not bitcoin is the end of the world.

(this is mercury financial original articles, please indicate the source or direct contact with mercury Finance)

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