From the beginning of last week, continued to decline in bitcoin every day, and finally in 11 month 25 day had a short-term slump, once the decline of up to 15%, down to the level of $3601.52, a record 9 months since the lowest level of encryption currency in 2017 years, so the price has been unable to cover their own let mine mining cost.
The bitcoin prices, is the lowest since September 2017, from the highest point down about 80%. And the cost time bitcoin fell is what, and what consequences?
BCH bifurcation is really hard arch-criminal?
Public opinions are divergent. reasons, bitcoin fell last week on the official media, CCTV also expressed their views. In the economic information network recently, CCTV financial channel, bitcoin slump recently conducted a special report, and will cause the crash bitcoins directed at the BCH bifurcation.
Rational point of view, BCH as bifurcation currency BTC, is a new chain to produce new rules in the new block capacity, because bitcoin has shaken the intrinsic basis of bifurcation hard bitcoin bitcoin, greatly weakening the advantages of its products BCH and bitcoin formed the relationship between competition and symbiosis. In the Wu Jihan and CSW count force in World War II, the miners, misappropriation of real bit stress temporary increase mining BCH ABC operator.
A misappropriation of force, reduce the bit, BTC mining efficiency, reduce the BTC global force and the center finally, the practice also has shaken the value consensus of miners. From the time line, hard BCH bifurcation occurs in the 11 month 16 day, and after BTC really began to frequent fall.
The BCH bifurcation is hard war, CSW said, if he will support the miners Jihan Wu, with lots of dollars to sell bitcoins, he believes bitcoin market there is no space, bitcoin will drop below $1000. Although I have yet to see a CSW behavior, but the comments for bitcoin miners caused psychological pressure.
But to return to the financial reason, we come from the analysis of the currency, the total value of BCH is only BTC less than the 7%, so small amount of bifurcation currency, it’s hard to bifurcate, namely BTC “grandchildren” coins, for BTC to have much impact? BCH bifurcation and this wave of BTC fell off the short-term relationship, but should not become the fundamental reason, or just a fuse.
The United States government to open policy to suppress the crypto currency or will face serious regulation
In November 16th, the U.S. Securities and Exchange Commission (SEC) and two cryptocurrencies companies reached a settlement, the two companies in the unregistered products in their respective initial encryption money raised more than $10 million. In SEC’s urging, the two companies to accept the U.S. government encryption monetary penalties, this is the first time for the first time issued tokens (ICO) registered civil penalties for violations.
In November 20th, foreign media said the judicial investigation by the Justice Department began to intervene in the bitcoin network transactions, the federal authorities are conducting a criminal investigation into last year bitcoin 1300% super high rise.
11 25, the “Wall Street journal” reported that Ohio will be the first to receive digital currency tax state. Ohio enterprises registered in OhioCrypto.com to pay sales tax. “I do think (bitcoin) is a legitimate form of currency,” Ohio’s finance minister Qiao Xi Mandel (Josh Mandel) said, adding that he hoped that other states will follow.
The United States as a digital currency reserves and trading power, strengthen the supervision policy, will fundamentally shake the whole market and industry. If the U.S. government’s attitude is not to support and strengthen supervision, so the free trade degree of digital currency will surely be affected, investor confidence in the digital currency will decline, and as the market value of the first bitcoin currency, first is reasonable affected.
Effect of BTC on the cause of what?
Previously, many traders said OKEx bitcoin futures chain warehouse explosion, Jiang Er table analysis the possible reason is the existence of “price fixing loopholes” OKEx trading system, error futures system OK, resulting in a large number of automatic quantification procedures zapan stock, market panic has been detonated.
Jiang Er coin celebrity speak table circle as in micro-blog or have a certain influence, OKEx vulnerabilities may exchange is one of the reasons why the bitcoin price, but directly influence so completely fuzzy BCH bifurcation, is not too realistic.
Xinhuanet.com in the dispatch also pointed out two reasons, in addition to the “hard BCH bifurcation first, a large number of the current block chain project there is a serious bubble, in block chain infrastructure are not perfect, the market is expected to continue to push practitioners highly unrealistic, eventually encounter the real blow, cause the market to a loss of confidence; second bitcoin is due to market, capital market, and the volume is relatively small, the global digital currency market but also a listed Internet giant volume, with large cash users zapan, also easy to cause the currency price move dramatically.”
Root cause: the collapse of confidence and consensus, led to a massive sell-off BTC
Bitcoin as a payment system for the blockchain encryption currency. By Nakamoto in 2009 based on peer-to-peer network without borders, with the initiative of the open source software creating consensus. But even the Nakamoto should I did not think that this is a digital currency to the center of the spirit in the first, including now, have been widely used in the dark and underground market, as firearms, drugs, money laundering and other illegal transaction settlement.
From the moment of bitcoin began circulating around the world, as a digital currency BTC has been criticized by the hidden danger. The reason the multi point, and 16 BCH on hard bifurcation as a fuse. The loss, long time to reduce the size of currency speculators bear market confidence and consensus, resulting in a wide range of miners and Chibidaigou the collapse, leading to the recent BTC large-scale sell-off, and produced a huge decline.
Whether it is the ICO project bubble was burst, or OKEx exchange bugs were found, or BCH bifurcation is hard war farce, all events be made one cause panic bitcoin, Chibidaigou and lack of confidence, once the so-called consensus was destroyed, the inevitable will usher in a crazy sell-off fell and BTC value, the is the root cause.
Effect of bitcoin plummeted: investors are unable to cover the cost of mine damaged assets
Last week, bitcoin fell, in the past seven days, has bitcoin prices fell more than $1700, down more than 30%. If it is in the beginning of last December, bitcoin currency high of investors, this part of the investment income has dropped by 80%, bitcoin slump is to bear the brunt of ordinary investors, which will cause investors to panic.
The only way to output bitcoin mining, with the continuous decrease of bitcoin remaining amount, mining costs more and more. At 6:24 yesterday evening, bitcoin fell below $3500 mark, there has been a lot of ore pool can not cover costs. Distribution in Xinjiang, Inner Mongolia and other regions of many small mines will choose its resale bitcoin liquidation. Many types of machine can sell a few million in the bull market last year, now the secondary transfer price of only a few hundred dollars, or even someone to scrap the price of bulk selling.
With the collapse of the long bear market and the price of bitcoin, finally have large mines to support him. In November 20th, the headquarters is located in the United States bitcoin mineral company Giga Watt filed for bankruptcy protection in eastern Washington State bankruptcy court, alleging that the company insolvent, unable to repay maturing debt, Giga Watt was the world’s largest single mine.
The largest bitcoin mine “bit,” but also for the day, reported a half bit on the mainland, the vehicle sales revenue of $2 billion 683 million, accounting for 94.3% of the total revenue. In bitcoin plummeted in the background, its price has many bits, drop to 3000 yuan, its ant T9 machine (12.5T), S7 (4.05T), A741 (7.3T) and M3+ frequency (7.07T) version four mills have reached off currency price.
At 12:25 on November 26th, bitcoin prices have been up to $4062, probably due to short-term slump yesterday bitcoin, let many people see bitcoin hunters the opportunity. Many currency circles believe that this round of bitcoin fell below $1700 is possible. The value of bitcoin future trend is still uncertain, but the price of currency speculators collective panic, the collapse of consensus have been exposed.
Bear forever, in panic and ICO deception lie, entrepreneurial team and entrepreneurs should clearly see the future development trend of the industry, do not bring in blindly superstitious ICO financing opportunities. Fang also explains the etheric collapse, the contract based on the smart ICO most is a bubble, is no longer recognized by the market.
The real blockchain entrepreneurs are still exploring the future of the industry is worth looking forward to
Relative to the currency circle collective panic and ICO bubble lies, many domestic developers block chain is still in the research and development to operation and products of the project. In every two weeks of the chain of tea party activities sponsored by the chain teahouse, each will have three to four outstanding projects came to the event, and the developers share in all areas of development experience. In the period of the activity, we saw a new chain of travel, is close to the traditional game quality saw with IPFS technology to make up for the block chain security system, traditional network security saw machine EOS predictions based on ecological service. As a new technology, the block chain is still a great subversive innovation space, and many developers also believe that these, continue to explore.
Block chain industry entrepreneurs need not because bitcoin price and other digital currency fell panic, long bear market currency price fell is a normal phenomenon, the disorder of ICO foam before the crazy is should not appear the situation. The real optimization scheme underlying technology, application and ecology with the spirit of innovation is the industry needs, the long bear market to settle down to their carefully crafted.
(author: chain teahouse, 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)