Crypto Is Really Struggling Right Now This Is Why
This is my opinion on why the markets are struggling so much.
It seems to center around usage and transactions. Bitcoins transactions are at rock bottom levels. Heck in fact I just transferred $6,000 for 2 cents! So for those in the bitcoin cash market complaining about high fees still STFU :D (I put that nicely lol)
What really drives the "value" of a currency is how often it is being used and changed hands. At the moment still without clear regulatory support many business refuse to accept bitcoin or any cryptocurrency because they are not sure how to file taxes for it or how the government will react to it.
Only 157,000 Transactions took place over a 24 hour period of time on bitcoin which is less then half what it was at the start of this year.
That coupled with bad news from hacks, exchanges with bad practices still, no regulations that are clear still, no real world use cases that are worth mass adoption yet and a never ending battle of what crypto currency is better is leaving the market in a very low volume and depressed mode. A low volume will send shockwaves when there is a sell or a buy.
In my own personally opinion now is one of the best times to stock up on any crypto as volumes are low and prices crashing it will only takes some possessive news such as bitcoin entering the stock exchange market to send it to $50,000 per coin in just a month or less.
I know sounds crazy right?
But when you think about what little good news there was for bitcoin back this time last year at $800 per coin YUP EIGHT HUNDRED BUCKS! and then how quickly we hit 20k we can see how quickly things can turn.
I know its depressing and sad lol even earnings here on steemit are rather lackluster which we can see page views and posts decreasing every day. My advice to you would be to stick with it, stack up as much as you can and wait. I believe you will be good to go towards the end of this year.
*Please remember this is my own personal opinion and not professional advice. Be sure to do your own research or seek professional advice before investing.
Actually 350,000 TX happen per day. https://transactionfee.info/charts/payments/perDay However it bc of batching aka sending more than 10 tx as one tx. As such it the same level but you don't notice it. Bitcoin is not working harder but smarter. LN is also up so that cool!
That very well could be the case too with lightning network and batching etc it is a diff rent story. Makes it hard then to see the real volume of movement. But it seems all internal there really no use cases I can think of yet for bitcoin. Im still waiting for some bit news out of ethereum and SMT etc for this year seems like its all going to be crammed in the last 3 months of the year so far lol.
I agree, velocity of money is a factor in any currency. I do think that demand for bitcoin has gone down, and the miners are probably trying to liquidate coins they have obtained. One other factor I have been making, liquidity is tough in bitcoin and all crypto. Bitcoin is probably the most liquid, but demand for it is low, so we will see the price go down.
4 years ago none of my friends heard of bitcoin when I started buying some. Today they all have heard of it, and many have considered buying if not already bought. Then they got destroyed since January. They hype is gone with “non-bitcoiners” which is probably good for the technology so it can catch up, and be able to perform during the next wave of hype.
It only will get better, but for prices to increase exponentially like last year, that’ll be a while.
But hell, I said that at $1000, and at $2000, and at $4000, and at $10,000
I think you're right that a large part of the value is determined by usage. I hope that some good news about BTC and other currencies will go viral so we can get one step closer to mass adoption!
@bitcoinflood I agree with everything you just said. In fact it will be interesting to see what Social Wallet @socialwallet will be like after the ICO is finished this week.........
Checking that out now thanks!
You wrote exchanges wrong in the tags. Don't know if you can change that, but if you can, do that.
Right now is a great time to buy, I would agree. Not sure what I would personally buy aside from steem though, there are better experts for that.
ops thanks for that :)
I got your back.
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I totally agree that it's a good buying opportunity time.
Go to @bible.com
You are very optimistic! Keep being optimistic and the day will come soon!
I agree on that, although I would sum it up as how much a blockchain is used for daily needs. For crypto currencies the value is in exchanging, but for most crypto there are more factors for value.