Bitcoin is moving up, here’s what will happen next

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Cryptocurrency Weekly Update And Forecast

Bitcoin Tops $4,000, And It Holds

This is a make or break moment for Bitcoin. The world’s leading cryptocurrency and reserve digital token is trading above $4,100 and looks like it could higher. It also looks like it might top out at this level so patience is the name of today’s game. The BTC/USD may be gearing up for a big move higher and I think it is but until it clearly breaks resistance, closes above it, and holds that level I’d be wary. The cryptocurrency market is waking up, has woken up, but that does not mean a massive rally is going to happen NOW. It may, but like I said, I’d need to see a good clean break of resistance before adding to any bullish positions. Until then it may be wise to trim profits if you have them, at least tighten stops on any trades you can. Resistance is $4,190, a move above that would be bullish.

Stellar Lumens, For Free!

Stellar is promoting its cryptocurrency network and token, the Lumen, through a free giveaway at Coinbase. Coinbase will give you up to $50 of XLM for watching a few videos, answering a few questions, and asking a few of your friends to join. The XLM/USD is now trading at a +2 week high following a bounce from the short-term moving average. The move looks bullish and extends a consolidation zone that may lead to higher prices in the short and long term. The indicators are mixed but consistent with an upward swing in prices so a retest of the recent high is expected. At least.

Basic Attention Token; The Hottest Sub-Token I Know

The Basic Attention Token, an ERC-20 protocol coin, is one of the hottest coins this year. the token is up more than 200% from its 2020 low and looking strong. The reason for this strength is simple, the BAT token and Brave Browser it supports have true utility. Utility is the factor lacking from most cryptocurrencies and why the market is having such a hard time bouncing back from last years rout. In the meantime, look for the BAT/USD to continue testing resistance near $0.30, once that breaks look for a move up to $.50 and $0.60 before an eventual retest of the $1.00 level.

Litecoin, Rising To The Top

Currently sitting in the 5th spot by market cap Litecoin is quietly rising in price and rank. The original “light” version of Bitcoin LTC is finding better acceptance among cryptocurrency HODL’ers. One reason is the stable network. Litecoin is not without issues mind you but it doesn’t have the problems seen by Bitcoin (fork after fork after fork) or the instability of Ethereum (still can’t issue and update/upgrade that’s been promised for two years). In this environment I expect to see LTC/USD move up to the $100 in the near-term. The token is currently fighting resistance at the $60-$62.50 level, a break above there would be bullish.

The Bitcoin Halvening is happening – here’s what you need to know

Mining rewards reduce by 50% every four years or so

Story by
David Canellis

Welcome to Hard Fork Basics, a collection of tips, tricks, guides, and advice to keep you up to date in the cryptocurrency and blockchain world.

Something major is happening to Bitcoin BTC in 480 days – the Halvening.

Bitcoin is created when the blockchain rewards the individual (or group) for validating transactions. The network gives Bitcoin to miners for adding blocks to its chain.

This is reimbursement for the costs associated with maintaining the network, like electricity and hardware upkeep. Miners typically sell it immediately to cover their overheads, thus releasing new Bitcoin into the ecosystem.

The Halvening is when the network reduces the reward by 50 percent. Halvenings happen at intervals of 210,000 blocks, which is roughly once every four years.

Bitcoin miners currently receive 12.5 BTC ($43K) each time they successfully mine a block. By the end of May 2020 (the next Halvening) they will instead earn just 6.25 BTC ($21.5K).

While this seems to imply enormous consequences for the network, it’s not all that scary. Let’s take a closer look to see why it shouldn’t worry you.

This is Satoshi’s way of battling inflation

Unlike fiat currencies, which are generally inflationary, the upper limit for Bitcoin‘s supply is 21 million. Once the network reaches that limit, no more Bitcoin can be generated.

The idea behind the constant Halvening is to ensure Bitcoin doesn’t suffer from intense inflation as it’s distributed. Satoshi Nakamoto explained the thought process in an email:

The fact that new coins are produced means the money supply increases by a planned amount, but this does not necessarily result in inflation. If the supply of money increases at the same rate that the number of people using it increases, prices remain stable. If it does not increase as fast as demand, there will be deflation and early holders of money will see its value increase.

Coins have to get initially distributed somehow, and a constant rate seems like the best formula.

Let’s say Satoshi simply launched the Bitcoin network with the full 21 million supply ready to go. There would be little incentive for its value to rise, as supply would likely outweigh demand.

To encourage sustainable growth, Satoshi chose a logarithmic scale on which to set dates for the Halvenings.

This means that even though 80 percent of Bitcoin supply has already been mined in its first 10 years, the final Bitcoin won’t be released until 2140.

We still have over a century of guaranteed incentive for miners to participate in the network, and for the market to figure out just how much Bitcoin is worth.

The hash rate didn’t fall directly after the last Halvening

A 50 percent reduction in mining revenue seems like doom for the ecosystem. But, this is going to be the third Halvening. So far so good, right?

The last one happened in 2020, when the blockchain went from releasing 3,600 Bitcoins into the ecosystem every day to 1,800.

In another 480 days, the network will release just 900 new Bitcoins daily.

During the last Halvening, the price didn’t really move. Although, some attribute the 50 percent price rise (from $430 to $650) in the three months prior to the reward reduction, albeit with little chance of proving causation.

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Aside from that, the network was pretty much indifferent. The overall hash rate (the total computing power driving the Bitcoin network) stayed the same.

This means miners did not switch off their equipment en masse in light of earning less rewards, something many had speculated would happen.

But then again – Bitcoin in 2020 is a whole different ballgame. More than ever, turning a profit with mining is difficult, even for the biggest in the business.

In any case, now you know what The Halvening is, and why it’s probably nothing to freak out about. You can keep up to date on exactly when the next one will happen with this neat countdown timer.

Published January 30, 2020 — 17:15 UTC

David Canellis

January 30, 2020 — 17:15 UTC

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Bitcoin Breaks $10,000 Again, Here’s Why

After a brief dip below $9,800, Bitcoin is again moving up. It has passed $10,400 over 24 hours with all signs pointing toward greater gains in the days ahead.

OPTIMISM IS GROWING FOR MORE BITCOIN GAINS
With the second break above USD $10,000 in two days, analysts are no longer debating whether or not Bitcoin is recovering. Discussion has now moved to how high the price may rise before reaching a ceiling.
The price surge is tied to statements by U.S. Federal Reserve Chairman Jerome Powell. Earlier today Powell testified before Congress, where he acknowledged that the fed is working on digital currency. Powell also recognized that cryptocurrency adoption poses a threat to the U.S. Dollar.
Bitcoin has now surpassed its recent high of $10,180 on February 9th, with no sign of a retracement. This upward price action has been swift. At one point the cryptocurrency moved up over $500 in under 6 hours, breaking $10,400.

The alt market has made similar moves, with top altcoins experiencing significant increases in value over the past twenty-four hours. Ethereum has crossed $230, a gain of more than five percent, and Litecoin has moved past $75, a gain of more than four.
There has also been a notable increase in media attention toward Bitcoin, as well as in Google searches, further indicating that investors are expecting prices to move higher.
FUTURE VOLATILITY ALMOST CERTAIN
As has been previously discussed, sell-offs almost always follow rapid gains. This time was no different, as Bitcoin’s price dipped below $10k after the weekend run up. It is perfectly reasonable to assume that it will happen again, making short-term market prediction very difficult.
Also, attention continues to focus on the upcoming block reward halving. The expectation that this timed move will lead to higher prices appears to have taken on a life of its own. Analysts now overwhelmingly view it as a sign of an impending bull market.
The halving is expected in May
There is, of course, no doubt that legacy financial institutions are paying very close attention to Bitcoin’s rebound. In years past most traditional financial professionals derided cryptocurrencies as valueless frauds. There is now no question that they are here to stay and represent a new global asset class. The extent to which institutional investors will move into the market remains unknown, but it is folly to assume that they will remain on the sidelines indefinitely.
The present conditions are clear examples of the tremendous volatility within the crypto market. As more fiat moves into the space, rapid price swings are all but certain to become more common. Also, despite analyst predictions, history has proven that accurately predicting Bitcoin’s future value is next to impossible. The current price recovery should not be considered an exception to these rules.
Where do you think Bitcoin is heading this week? Add your thoughts below!

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