We are sure that the market will be developing. And now we will tell you why fly to the moon is going to happen.
Stock market cycles
Let's start with theory. All stocks of securities or precious metals have normally witnessed ups and downs. Bitcoin is no exception. For the ten years Bitcoin has already fell few times, then it lost 70 % and even 90 % its value. We find ourselves today in a situation that is most dangerous. We are a nervous wreck in panic hurrying to sell-off.
But each time then all the most crisis-proof gamers stayed in, market went to the growth phase again and Bitcoin hit yet another record. Last time it rose up to 20 thousand dollars. It means that next time the maximum would get even higher. Future winners should not to bend to widespread panic and to stop by the bottom of market thinking about the next getting to the moon.
Market needs good reasons for going up. Earlier it was technology development and increased towards taking. Last year the market catalyst role was done by the start Bitcoin-futures at the stock exchange CME and СВОЕ. There is a bridge between the cryptocurrency and the global finance stock, whose assets are calculated by trillion dollars. Very soon institutional investors will go through this bridge.
Whole year the Securities and Exchange Commission USA therefore defers action on Bitcoin-ETF, but there is understanding that it could not be forever. Cause supporters of the Bitcoin`s entre in stock exchanges are not only developer and crypto enthusiasts but also leading financial institutions. While USA are in doubt on the Swiss Exchange there are bidding with similar crypto products.
One more catalyst of growing will be Crypto selling platform Bakkt. This platform will be starting by ICE, the owner of New York Stock Exchange. There is also a platform for institutional investors from one of the biggest finance global companies Fidelity Investment, that ran in 2017 more than two trillions dollars.
Odds are the collapse of Bitcoin is the work of big capital-holders. ICE, Fidelity Investments and other leading banks want to buy largest possible number of cryptocurrency at low price, which can then get the maximum profit by selling to their customers.
Mining is working
In 2018, there was a fancy scare story about loss-making mining. It's time to switch off and sold hardware for scrap. There is some of truth, cause new companies with big capitals have gone into the market. The technology of Bitcoin mining has leaped forward. That's why without investment including hundreds or even millions dollars to buy new ASIC-miners, their holders should go out of business. It doesn't mean that Mining is dead, just rivalry gets harder.
If you take a look at the charts of hashrate, you will see that this year it grow up more than twice from 15 to 38 exahashes per sec. Meanwhile the top points exceed 60 exahashes per second. But after the price of Bitcoin was lower than 6 thousand dollars, many miners needed to stop loss-making mining. In the several countries the cost price of Bitcoin mining is 2 thousand dollars and less. Exactly in such countries new mining farm are expected.
Bitcoin is developin
Mining is not the sole measure of Bitcoin. Despite a challenging year for investors, the opportunities for the first cryptocurrency and its technology steadily improving. If you look at the statistics, you see the numerous of new bitcoin-wallets has continued to grow an increasing proportion of SegWit – transaction, which reducing costs. And the general numerous of transactions is gradually increasing.
The developing of payment networks Lightning Network should be also noted. Sceptics didn't believe in this technology but its developing isn't finish. Nowadays Lightning Network includes more than 4 thousands nods and 12 thousands payment channels transmitting 450 BTC.
Cryptocurrency is the separate industry
Story of Bitcoin starts with white paper unknown author, which only few enthusiasts cypherpunks believed in. Was then huge community grow around them. It was the basis for new industry.
Cryptocurrency is the occurrence to be reckoned with. That said not only the International Monetary Fund's managing director, Christine Lagarde, but also heads of the G-20 countries. The world recognized that cryptocurrency will not disappear and the point of the interaction with them should be found.
How will it look like? With the great probability we will see the same story with dotcoms bubble then most of internet-companies went bankrupt in few days. Even now crypto market looks like that internet companies boom. Look that only CoinMarketCap has 2000 different projects! The bubble has then burst and only the strongest stayed afloat, e.g. Google and Amazon. Comparable leader of crypto market is Bitcoin, accounting for more than 55 per cent of all capital. It's the most widespread cryptocurrency in the world that has the huge community.