If You Can’t Stand Crypto Crashes, Stay Away from the Trading Terminal
The last week was pretty uneventful. The continuing crypto crash has probably hypnotized the mighty market participants, and they are most sitting it out. Weekly Crypto Digest from United Traders authored by Matvey Danilov.
Bitcoin continues declining, as well as Ether, and the rest of the coins. Bitcoin is approaching $3,000 per coin, Ether has dipped below $100 again. The numerous “expert” opinions by and large are indicative of the only thing: it appears that virtually no one willing to share their conclusions regarding the market environment has any understanding of the environment itself; and those who have make money by directing exchange rates for their own benefit rather than publishing opinions of little value. I wish I could identify those people and what their interests are…
Rumor had it over the Internet that Bitmain, the largest mining equipment manufacturer from China that was regarded as a showcase lucrative business and that everyone was green with envy about, is now in distress. The company has reportedly lost $740 million in the Q3 this year putting at risk its Hong Kong IPO, which the company filed for only this September.
The second largest drop in bitcoin mining difficulty in its entire history has occurred this week; as a result of another recalculation the reduction exceeded 15%. The ranking of the largest drops in mining difficulty looks as follows:
2011-nov-01: -18.0%
2018-dec-03: -15.1%
2011-oct-16: -13.1%
2012-dec-27: -11.6%
2011-mar-26: -9,5%
2013-jan-26: -8.6%
2011-dec-01: -8.5%
2012-may-25: -9.2%
In the meantime, Intel has received a patent from the U.S. Patent Office for its “low-energy highly efficient bitcoin mining” technology. By combining a Bitcoin mining hardware accelerator with an optimized SHA-256 message digest and message scheduler datapaths, the company claims to have achieved a 15%-35% improvement in bitcoin mining efficiency.
Crypto exchange Binance and Tripio, blockchain-based hotel booking service, announced their partnership, which will allow Binance Coin (BNB) users to pay with the coin for accommodation in 450,000 hotels globally listed on Tripio. The exchange now has 10 million active users, and therefore, the partnership should prove to be beneficial for all participants.
Amid the universal cry that “we’re all going to die” and “oh my God, bitcoin is crashing”, the CEO of Japanese fintech firm and crypto exchange operator Quoine Mike Kayamori remarked in the sense that the current environment is a nightmare indeed but it’s absolutely not a “total nightmarish nightmare”. And for one simple reason that the major fundamental indicators of that cryptocurrency are continuously improving. The number of users and transactions is growing (while transaction costs decline), hash rate has increased four times over the last year, and bitcoin’s integration into the real world is growing stronger owing to companies accepting the cryptocurrency. And therefore, Mr. Kayamori concluded, there’s no reason to panic about BTC’s slump; instead, it makes sense to patiently wait until the end of next year and see what happens.
Through its Vice President Joseph Christinat, Nasdaq has officially confirmed the persistent rumors that the exchange is launching Bitcoin futures markets as early as next year and is currently awaiting approval from the CFTC. Analysts note that introduction of such instrument to the market would trigger recognition of digital assets by conservative financial circles.
The largest investment companies active in the cryptocurrency market consistently buy bitcoins paying absolutely no attention to the value depreciation of the major coin that has been going on for a year. For instance, Grayscale Bitcoin Investment Trust (GBTC), that was established 5 years ago by Digital Currency Group has by far accumulated over 200,000 bitcoins, i.e. over one per cent of the total supply. Large players seem to know something.
Kuwait is another oil producing country from the Middle East that started developing its own cryptocurrencies. In order to ensure smooth implementation of a blockchain-based means of payment, the country’s central bank plans to launch its national digital payments system by 2020.
South Korea continues to remain one of the most friendly countries for the crypto industry, which helps it get meaningful bonuses; while Eastern Europe, and namely Czech Republic and Slovakia, witness expansion and strengthening of the so-called crypto anarchists movement. These guys got very much excited about emergence of cryptocurrencies and now they dream to break the tightening grip of evil countries by creating “a parallel community of people who share our values.”
And also just recently, some individual, entity or a group of persons took control over 22% of total Litecoin supply, which if measured in fiat equivalent amounts to approximately one billion US dollars. Each of the 42 newly created wallets received 300,000 coins, and another two wallets got a little less. What is the reason for this asset consolidation and who is behind it — the crypto community was unable to clear this up.
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