Bitcoin Over $5800 Amid "China Rumors"
Source: http://www.zerohedge.com/news/2017-10-12/bitcoin-explodes-5600-30-end-chinas-golden-week-holiday
Bitcoin is up over 20% this week. Speculation is that China is revisiting it's Crypto Policy as the country elects a new leader or remains with their current leader. Selecting a new leader is a process in China that will start very soon and last several days.
One of the decision that will come out of this 10 day meeting will be the direction of China and it's policy towards crypto's and trading. You saw all exchange trading and ICO regulations cracked down to give the "eventual leader" a place to start from ---- will the new leader emerge with a very regulated Bitcoin policy and exchange trading? That is what the rumor is.
In addition -- we have the Bitcoin fork which some people may look upon as "free money".
But I think the China and Russia "clear communication" of crypto's --- not FUD --- is what is coming...and it will be good.
I think there will be no "free money" in the upcoming forks, if the hope of "free money" is driving the recent growth, then I expect there to be a dip after the S2X-fork.
ATOH, if the S2X-fork passes smooth (with either S2X as a clear winner or S2X as yet an unsuccessful attempt on raising the block size), there may be further growth.
Personally I believe we need more capacity in the base layer, what we've been seeing the past two years is a cryptocurrency where the utility value has been going steadily down, while the market value have been going steadily up. That's unsustainable, I'm concerned that with the capacity frozen at 1MB pr block, we may end up with a "digital tulip"-style market crash.
All good observations on your part. Can we also add that there is "massive money"that also may be getting in and driving prices.
There cannot be any price growth without massive money coming in, and there cannot be any massive money going in without price growth. Hence also with any fork, there cannot be any "free money" from the fork without the fork itself causing people to spend massive money buying coins.
Next question is, what kind of money? If I understand coinmarketcap correctly, at the 10th of October there were quite some movement from alt-coins to bitcoin, while the last two days the growh is mostly due to fiat.
Next question, from where does the money come? Is it many small investors jumping in, or is there some few big investors? Since the growth was quite sudden and since I haven't seen any big newssplash explaining the growth, I tend to believe it comes from fewer bigger investors. It should be possible to find out by looking into historical data from the exchange volumes and order books, as well as checking on what exchange the price started growing first, and on what exchange the price has been highest throughout the growth. I'm not going down that path :-)
We will only know this over time....but you have to read and take in all other news about China/Russia and others looking to avoid the dollar. In time, it will have some impact and it appears to grow. Maybe we are seeing a recognition of this -- at least the very early stages.
Great insight ! indeed that is unsustainable. We need more businesses for it to become mainstream. It's like we are stacking money upon money. Though, it's paying so far, but for how long?.
The problem is that we're seeing less business support, many actors that previously accepted Bitcoin for payments don't do it anymore due to unreliable transaction delays and high fees.
Two years ago one could easily pay small amounts with bitcoin, today the fees are too high - bitcoin as a means of payment is soon only viable for bigger international transactions and for criminal activities.
We have efficiently been hitting the ceiling on the number of transactions pr day for two years now due to the capacity limit.
Seems like BitPay has managed to grow their turnover through focusing on high-value transfers, like property purchases.
Yeah, you're right. It's a good option for big transactions and international payments so far. The fees are very very high for small day to day transactions to be even considered. And it seems that we will continue with that for a while or may be more than just a while.
Still thinking to sell or not, can't make up my mind.:)
Sell a bit of your hodlings. If the price will continue growing, you can be happy that you sold just a little bit, if the price falls, you can be happy that you at least have secured some of the profit :-)
Yeah, I was kinda of thinking the same. But got a little greedy I guess. :)
Tough decision ....if it's to be regulated by countries / adopted ....who knows what the price could be.
good informative post
thank you for sharing
don't forget to up vote
Thank you for your comments.