Is Bitcoin Really Doomed?

Posted by iGaming Buzz on September 9th, 2019

Fluctuations in the course of any cryptocurrency are normal. But too strong fluctuations in value can not but disturb the community. The recent sharp fall in Bitcoin in November 2018 provoked a real panic among traders, miners, and investors. What caused this situation, what are the reasons for the continued decline in value in 2018? Why is Bitcoin falling or growing, what factors affect this?

Reasons Bitcoin Falls

• Growing competition. In recent years, hundreds of new virtual currencies have appeared. Among them, coins with high potential and more advanced technical characteristics stand out than Bitcoin. Nevertheless, you can use cryptocurrency in a CASHlib online casino without any doubt. It is very convenient and fast.
• The difficulty of mining. The Bitcoin network is designed so that every 2016 blocks there is a recalculation of complexity. If the system considers that the blocks were mined too quickly, it increases the complexity of the calculations. Thus, mining requires more and more powerful equipment, and at home, it is almost impossible to maintain it. Therefore, mining BTC focused on large corporations.
• Slow transactions. Although Bitcoin still wins compared to bank transfers, the speed of operations is inferior to that of new cryptocurrencies. Now there are networks capable of conducting thousands of transactions per second. Against their background, Bitcoin does not look so profitable anymore, and the rate is falling.
• Artificial influence on the course. This applies to fraudulent schemes: a group of traders is formed with a large total capital, then a certain news background is issued that affects the price reduction; a falling cryptocurrency is instantly bought up. The course from this increases sharply and when it reaches a peak, diapers sell currency, receiving gain from the difference between the purchase and sale prices. Ordinary traders at the same time lose money from a fall in the rate.
• Political difficulties. Despite the fact that a number of countries (especially European ones) are beginning to loyally perceive Bitcoin, there are still many states where cryptocurrency is not allowed and is not prohibited.
• Many are also scared away by the psychological factor: the exposure of the currency to news and events around it is too strong. The slightest rumor leads to the fact that Bitcoin falls and grows, because of this it is very difficult to predict its dynamics.

Data:

The maximum growth of Bitcoin per day was observed on December 11, 2017: +27%.
Maximum monthly growth: +135% in November 2017.
The historical maximum was recorded on December 18, 2017: ,535 for 1 Bitcoin

World situation

If we analyze the general state of the global economy, we can see that not only cryptocurrency is falling. Losing in the price of shares of large corporations - Amazon, Google, Facebook.
Likely reasons:

• the fall of the dollar, the first signs of a crisis in the US
• reduction in oil production;
• the uncertainty associated with Britain's exit from the European Union.

SEC Registration

SEC is an American Securities Commission. Recently, the institution has been paying much attention to cryptocurrency funds and ICOs, forcing these projects to register at an official level. The commission made allegations against several ICOs about the incorrect classification of tokens and the lack of registration. Because of this, users began to massively sell tokens, which affected the volume of market capitalization. SEC is not going to stop there.