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Is Bitcoin bubble about to burst?

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Expert take on Bitcoin bubble burst.

Let us understand some of the factors that are contributing to the Bitcoin bubble burst

The decentralized Crypto market was initiated in the year 2009. Ever since then the crypto market has been very fluctuating. The fluctuations can span up to thousands of dollars within just a few hours. The Bitcoin market is hence said to be volatile in nature due to the low market capitalization. The traditional stock market trades around trillions of dollars per day but the cryptocurrency market trades only a maximum of billion dollars per day.

The year 2018, is not proving to be very lenient for the cryptocurrencies as many of them are experiencing a bearish trend apart from a handful of them. Even for bitcoin, the market has been very bad with the current price around $6563 fallen to almost one-third of its all-time high of 2017 of about $19,511.

Immediately post its record high, it almost fell to half of the value due to the negative news by the US initiating a regulated feature for the cryptocurrencies. Following which the crypto space experienced a number of subsequent threats by the regulators of various countries like China, South Korea, including India.

The hack of the Japanese Exchange, Coincheck where it lost almost $500 million worth of Bitcoins. Followed by the cryptocurrency ad ban by the popular social media website Facebook. A few weeks after the theft at the cryptocurrency exchange, Coincheck the Japanese authorities raided their offices in order to confiscate their computers and documents as evidence.

The Bitcoin scalability issue is the most popular one and also the amount of electricity required for mining the Bitcoin is increasing at a rapid rate.

The asset manager’s head of global economics and strategy, Stefan Hofrichter is of the opinion that  Bitcoin as an asset as well as a currency has very serious flaws which might be the precise reason for the Bitcoin bubble to burst. He continues to say that Bitcoin does not have any intrinsic value because it is not backed up by any form of asset and hence does not generate any income.

Hofrichter, from a perspective of an environmentalist working for a social cause, even added the fact that the cryptocurrency production requires a huge amount of electricity which is not viable.

However, like much other business analyst and experts, even Hofrichter agrees that the underlying Blockchain Technology has a lot more impact than the cryptocurrency Bitcoin.

Expert take on Bitcoin bubble burst

Many experts even believe that though Bitcoin is presumed to replace Dollar and Euro in just a single day, the value if the cryptocurrency is not actually driven by any strategic worldviews but only by the belief that the crypto enthusiasts have in it.

According to them, all these factors are the signs that the Bitcoin bubble is about to burst. The burst may be triggered by any other hacking attempts or any serious regulations bought into the cryptocurrency market by the financial regulators throughout the world.

According to some of the financial experts at Capital Economics, even if the Bitcoin Bubble bursts and there is a complete breakdown of the cryptocurrency market, the actual financial market would not be affected that much, as the number of investments in the cryptocurrency space is relative less, due to the fact that many institutional investors have not invested in the cryptocurrencies yet.

They even pointed out at the other applications of the blockchain technology apart from the finance and banking sector. They made it very clear that even if the cryptocurrencies failed the blockchain technology will last because it has potential to find its application in various other domains such as in electoral process, Healthcare industry, supply chain management, and many more.

The Chief financial regulator of South Korea,  where almost 15% percent of the daily transactions of the Bitcoin world takes place informed the MPs of Seoul that the government was planning to shut down all the virtual cryptocurrency exchanges. The thought was actually initiated by the Justice Minister of the country. Following which the Financial regulators of  Russia, as well as the Chinese government, have hinted to follow the footsteps of South Korea.

All these incidents cumulatively added up to the reason for the fall of the Bitcoin market. Also, there are a number of inherent flaws that exist in the current Bitcoin blockchain network protocol.

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Bitmain IPO: Not a reality anymore

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The Initial Public Offering application of Bitmain is set to expire today i.e. 26th March 2019, which explains that the company is no longer going public.

The Initial Public Offering application of Bitmain is set to expire today i.e. 26th March 2019, which explains that the company is no longer going public. However, this does not mean that the company might never go public as they claim that they will work on the application of Initial Public Offering at the right time.

 

Bitmain IPO: Not happening anymore

The rumors were all around the cryptocurrency space that Bitmain is going to go public by holding an initial public offering on the Hong Kong stock exchange soon. But it seems that the dreams have just been broken as the mining giant is no longer holding an IPO as reported by the South China Morning Post. The large monetary losses that the company has been facing and the firing of employees might be the reason for making a U-turn.

 

IPO Plans:

The initial public offering was announced by Bitmain last year. Jihan Wu, one of the youngest billionaires in the world and the CEO of Bitmain had earlier stated that they were open to list on the Hong Kong Stock Exchange or an overseas exchange. Soon after this, Bitmain has acquired 16-floor official premises in the Silicon Valley from where the rumors started to spread that the company is going to launch an Initial Public Offering in the United States. During this period, Bitmain was leading the bitcoin mining industry by controlling more than 80% of the market. It was being predicted that the value of the company would rise to $40 billion after the Initial Public Offering is held.

 

The rumors started to cool down as reports were out stating that the company was facing financial losses due to the falling prices and the market capitalization of cryptocurrencies. In just Q3 last year, Bitmain had lost over $500 million which is a piece of terrible news for a brand that is going to launch an Initial Public Offering soon. It got worse for the company when the head Jihan Wu left the company for starting his own project.

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Premier of Bermuda: QuadrigaCX would not loose its keys if it was registered in Bermuda and not Canada

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According to E. David Burt, the premier of Bermuda, QuadrigaCX would not have lost its keys if the company was registered in Bermuda rather than Canada.

According to E. David Burt, the premier of Bermuda since 2017, QuadrigaCX would not have lost its master keys if the company had been registered in Bermuda rather than Canada. He gave his statements during an interview with the Fortune on ‘Balancing the Ledger’. He mentioned that a case like QuadrigaCX is not possible in Bermuda because of the cryptocurrency regulations in the country.

 

The sudden death of the founder of QuadrigaCX exchange in December last year has led to a bunch of issues for the investors and traders who had kept their holdings on the exchange. QuadrigaCX is not being able to gain access to the cold storage wallets where the funds of the users were stored. According to the company, the founder was the only person who had the keys to the wallet.

 

As stated by the premier of Bermuda, if QuadrigaCX was registered under the Bermuda Monetary Authority and not in Canada, the current situation would not have happened because according to the regulation for the custody of the master keys, the keys shall never be held by any single individual.

 

The premier also stated that Bermuda’s Digital Asset Business Act which was incorporated in 2018 has set a frontier for the companies that deal with blockchain technology and cryptocurrencies and makes sure that the rights of the clients always stay protected. The Act explains about the master keys, the handling of things, to make sure they are not lost, and even if they are lost, there should always be a method of recovery.

 

Blockchain and Cryptocurrency in Bermuda:

Bermuda is well known for being a crypto and blockchain friendly nation. The Bermuda government also made an announcement last year of its plans for amending the current Banking Act for establishing the latest class of banking system for rendering services to the blockchain and fintech businesses in the country.

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Bitcoin will surely reach $10,000 this year: CEO of Bitmex

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Arthur Hayes, the CEO of Bitmex announced his bitcoin prediction for the year and according to him, BTC will surely test the $10,000 range by this year-end.

Cryptocurrency bulls have already started to make their bitcoin price predictions for the year as they now believe that bitcoin has already bottomed to the lowest level for the year.

Recently, the CEO of Bitmex, the most famous cryptocurrency margin trading platform, Arthur Hayes announced his bitcoin prediction for the year and according to him, BTC will surely test the $10,000 range by this year-end.

 

Bitcoin to $10,000?

Arthur Hayes’s bitcoin prediction was published in the Bitmex newsletter which said that bitcoin will correct upwards slowly and reach up to $10,000 by the end of 2019. He said that the current year’s chop shall be severe however, the bitcoin market will reach $10,000. He also mentioned that the real recovery price is $20,000.

 

According to his analysis, the first few months of the year have experienced low trade volumes as a lot of volatility in price, however, bitcoin did not the 2018’s lows of $3200.

 

Arthur also mentioned that the cryptocurrency market will not climb back really quick as a lot of investors have lost a lot of their money and thus they will not re-enter the markets that quick.

 

Bitmex CEO also mentioned that the cryptocurrency investors are still investing in ‘shitcoins’ such as TRON, Ripple and Binance coin.

 

What Arthur really trusts is that the majority of people will start investing large amounts of money into bitcoin and other cryptocurrencies by the end of the year i.e. Q4 of 2019.

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