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Bitcoin vs USD (crypto vs fiat)

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It can carefully be observed that cryptocurrencies hold an upper hand when compared to the Fiat currencies and hence seems to have a bright future

Comparing Fiat and Cryptocurrencies in order to assess their future

 

Introduction

There is a very thin line between a Cryptocurrency as well as a Fiat currency. It is well known that the cryptocurrencies are about to replace Fiat currencies completely, due to its innumerable dominance. Let’s understand the characteristic attributes of each one of them which differentiates them along with understanding their relative strength and weaknesses over each other.

 

  1. Fiat currency is nothing but the traditional currency which we use on a daily basis regulated by the Central Financial Authority of the respective country. On the other hand, the cryptocurrencies are not regulated by any Central Financial Authority but are distributed in nature.

 

  1. The Fiat currencies exist in physical form i.e physical denominations of the currency is available in the form of paper notes and coins. Cryptocurrencies, on the contrary, are completely digital and no physical denominations are available in any form of notes or coins.

 

  1. Due to this physical existence of the Fiat currencies a lot of paper (indirectly trees) along with metals (for coins) are required for its manufacturing, but the cryptocurrencies, since are available only on electronic devices need not require any such natural resources.

 

  1. The main characteristic feature of the cryptocurrencies is its way of creation. The cryptocurrencies are not manufactured in the way the Fiat currencies are done. Cryptocurrencies require complex computations to be done in order to obtain them, through a process called Mining. The Fiat currencies do not require that much amount of electricity. The amount of electricity needed is to print paper or mint coins.

 

  1. As crypto mining requires immense amounts of energy, it gives the currency generated, some intrinsic value. As a creation of Fiat currencies requires a fixed amount of energy, they do not provide that much intrinsic value to the currency as the cryptocurrencies do.

 

  1. Fiat currencies are regulated and distributed by the central financial authority of the respective countries and hence the amounts of Fiat currencies manufactured can be huge, which might lead to its Deflation. But as the cryptocurrencies require complex computations, the amount of cryptocurrencies mined is not under anybody’s control, it is Deflation proof.

 

  1. In the case of Fiat currencies, manufacturing is vested with a Centralised Authority but in the cryptocurrencies, even the creation or mining the cryptocurrencies is distributed among its participants.

 

  1. Nevertheless, both the currencies have similarities too.  They both can be broken down into a number of denominations and can be considered as a store of value.

 

  1. Fiat currencies are regarded as legal tender by all the governments but the cryptocurrencies are not regarded as a legal tender in many of the countries around the world.

 

  1. One of the key upper hand that the cryptocurrencies hold is that they are globalized and can easily be transferred anywhere around the world. But as the Fiat currencies are regional, they are somewhat restricted towards a specific region and one is required to get it exchanged to use them in a different nation.

 

  1. The Governments can restrict the usage of the Fiat ( like setting the maximum withdrawal limits) for their users for a number of reasons, but there is no such restriction in case of a cryptocurrency.

 

  1. The market fluctuations in the case of a Fiat currency is relatively less when compared to that of cryptocurrencies since the cryptocurrency market is not mature enough yet.

 

  1. Both the currencies can be seen standing on the same grounds when it comes to estimating its actual asset value because no asset is used to back them up. However, earlier the Fiat currencies used to be backed up by Gold.

 

  1. Features of a currency like a Durability, Portability, Divisibility, and Uniformity seems to be applicable to both of them quite gracefully. But when it comes to Supply and Acceptability, they seem to be poles apart.

 

  1. Examples for Fiat currencies are Indian Rupee, American Dollar, European Euro, Japanese Yen, etc. Bitcoin, Ethereum, Ripple, Bitcoin Cash, Ethereum Classic, are some of the most popular examples of cryptocurrencies.

 

Conclusive remarks

It can carefully be observed that cryptocurrencies, on a generalized basis, hold an upper hand when compared to the Fiat currencies and hence seems to have a bright future in the financial sector.

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#Bitcoin Price Analysis

BTC to USD, 19th May: Bitcoin Price Analysis, $6000 or $9000?

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Bitcoin price started to recover massively after crashing down to around $6600 level. BTC is currently trading in a positive momentum.

Technical Indicators:

Support Levels: $7500, $7000, $6600

Resistance Levels: $8000, $8200, $8300, $8500

Key Points:

  • Bitcoin price started to recover massively after moving above $6800 level.
  • The bulls pushed the price back above $7000 and even $7500 resistance level.
  • Bitcoin price was also able to break above the bearish pattern line which was being formed on the hourly chart with resistance around $7300.
  • Currently, BTC seems to be eyeing towards $8000 resistance level.

 

Bitcoin Price Analysis:

SUMMARY: Bitcoin price started to recover massively after crashing down to around $6600 level. BTC is currently trading in a positive momentum and might soon test $8000 resistance level to move towards $8500 and even $9000 levels if it remains above $7200 and $7000 support levels.

Bitcoin price gained bullish momentum last week and broke above $7000 resistance level. The buyers were also able to push the price above $7200, $7500 and $7800 resistance level. BTC even moved over the $8000 level to record a new yearly high at around 8360. However, bitcoin price started to correct downwards later on and fell below $8000 level. The selling pressure increased massively and BTC also broke below $7000 support level which turned the overall momentum into negative. However, Bitcoin price found decent support around $6650 level where buyers were able to stop further losses.

Bitcoin price soon started to recover back upwards and broke above the resistance formed around $7000. BTC was also able to break through $7200 resistance level as well as the bearish pattern line that was being formed on the hourly chart with resistance around $7300. Bitcoin price also moved above $7500 resistance level and is currently trading well above this range.

With BTC currently trading around $7800, the overall momentum seems positive and Bitcoin price might soon test the $8000 resistance zone above which it might test the $8200, $8300 and $8500 levels. However, if bitcoin price started to correct downwards again, it is very essential for BTC to maintain its position above $7000 to remain bullish. If BTC falls below $7000 and $6600 support level, it might turn towards $6000 and even $5500 level in the short term.

BTC to USD Price Chart 19th May

BTC to USD Price Chart 19th May

The chart shows that bitcoin price was able to recover nicely after falling towards $6650 level. The overall momentum seems bullish and BTC might test $8000 level to move towards $8200, $8300 and $8500 resistance levels. On the downside, BTC is currently supported at $7500, $7000 and $6600 level below which the momentum might turn bearish.

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#Bitcoin Price Analysis

BTC to USD, 15th May: Bitcoin Price Analysis, $8500 or $7000?

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Technical Indicators:

Support Level: $7600, $7500, $7200

Resistance Level: $8100, $8350

 

Key Points:

  • Bitcoin price started to correct downwards sharply after rising up to around $8350.
  • The sellers pushed the price below $8000 and BTC tested the $7600 support level.
  • A bearish pattern is being formed on the hourly chart with resistance around $8100 which might push the price back downwards.
  • Bitcoin price might test the $7600, $7500 and even $7200 support levels before it starts a fresh upside move.

 

Bitcoin Price Analysis:

SUMMARY: Bitcoin price started to correct downwards and fell below $8000. BTC is currently supported at $7600 and $7500 and might soon test the $8100 and $8350 resistance levels again.

 

Bitcoin price broke above the $8000 resistance level yesterday with bullish momentum. The buyers even pushed the price above $8100 and $8300 resistance levels, however, there were a lot of sellers placed around $8350 resistance level and thus after reaching up to $8340, bitcoin price started to correct downwards. During the downward correction, BTC delined below $8200 and $8000 support levels.

 

As the price declined below $8000, the selling pressure increased and the bitcoin price was pushed back to the $7600 support level. BTC reached up to $7631 before the buyers were able to control the situation and stop further losses. Currently, Bitcoin is trading well above $8000 and trying to move towards $8100 level. Also, there is a bearish pattern being formed on the hourly chart with the resistance at $8100 which might push the price back downwards. Thus, it is very essential for bitcoin price to break above this level in the short term to stay bullish.

 

The current resistance lies around $8100 above which BTC might test the $8350 resistance level again. A close above this range would take bitcoin to the $8500 and $8700 levels. However, if BTC falls below the $7600 support level, it might fall back towards $7200 and even $7000 level below which the momentum might turn bearish.

 

BTC to USD Price Chart 15th May

BTC to USD Price Chart 15th May

The chart shows that the bitcoin price is currently trading above $8000 and trying move towards $8100 level. Most likely, bitcoin price might fall down towards the $7600 support level again before starting a fresh upward move. As long as bitcoin remains above $7600 level, it will stay in an uptrend and might soon test $8350 and $8500 resistance levels.

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#Bitcoin

Alert: GotSatoshi Reveals the Real Identity of Satoshi Nakamoto?

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A new website called GotSatoshi now claims to know the real identity of the founder bitcoin Satoshi Nakamoto.Here is what they revelead.

The identity of Satoshi Nakamoto is one of the biggest secrets in the world, especially in the cryptocurrency industry. A lot of people have speculated the real identity of the bitcoin founder and some people such as Craig Wright has even self-proclaimed themselves to be Satoshi Nakamoto. A new website called GotSatoshi now claims to know the real identity of the founder bitcoin Satoshi Nakamoto.

 

Where in the world is Satoshi: The Countdown ends

The website ran a countdown and also posted on their official twitter account claiming to know the real identity of the founder of bitcoin.

 

The countdown which ended just a few minutes back (from the time of publication) revealed a video which is actually marketing a news website called PaiNews. It seems that it was just another joke or a method of fooling and attracting traffic to the website.

 

What are your thoughts on such lame jokes or methods of attracting traffic? Tell us in the comments section below.

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