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Only 1.3% Of BTC Transactions Are Actually Payments: 2019 Report

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Only 1.3% Of BTC Transactions

Only 1.3% of BTC transactions in 2019 so far come from merchants and payments which means that no one is using bitcoin to buy things. Like the reports, we have in our latest cryptocurrency news suggest, 98.7% of the volume is all on the exchanges.

The research firm Chainalysis made this discovery a few days ago showing that the bitcoin economy is still mostly speculation. The figures are based on the company’s research team for the previous four months of 2019. The senior economist at Chainalysis Kim Grauer told Bloomberg:

“Bitcoin economic activity continues to be dominated by exchange trading. This suggests Bitcoin’s top use case remains speculative, and the mainstream use of Bitcoin for everyday purchases is not yet a reality.”

According to Olga Kharif who is a tech column writer at Bloomberg, the bitcoin price rally hides the ‘’uncomfortable reality’’ by saying:

 “That’s become the main dilemma with cryptocurrency. Bitcoin needs the hype to attract mass appeal to be considered a viable electronic alternative to money but it has developed a culture of ‘hodlers’ who advocate accumulation rather than spending.”

Currently, there are plenty of HODLERS who advocate accumulation and this could be a reason for the low percentage in bitcoin payments. Some analysts even described it as the ‘’invisible hand’’ of Adam Smith who guides the decisions in the economy based on knowledge and self-interest.

The banks in the US monetary system are built to only accept dollars and lose about 3 percent of their value every year since the Federal Reserve expands the money supply steadily. The FED issues the dollars to Federal Reserve Banks and lends it at a profit. When the money starts circulating, they bring the value of the dollar down in your bank account.

On the contrary, no central authority issues Bitcoin and the asset has a fixed supply that will max out once after 21 million BTC are issued. People will likely spend them differently than dollars but for now, it still remains that only 1.3% of BTC transactions are payments. It is expected that in the near future, bitcoin will become a global merchant solution.

As noted in the coming altcoin news, people are still skeptic of the major asset mainly during a bull run. Everyone expects for it to crash meaning that people still don’t have faith in it.

DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at editor@dcforecasts.com

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New Bitcoin Drop Nets Bitfinex Whale $10 Million In 5 Minutes

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The new Bitcoin drop is all over the latest cryptocurrencies news and we can see that BTC is in the four-digit area again, trading below $10,000 for the first time in a week. The price of the most dominant coin reclaimed the $10,000 mark shortly overnight but lost it again, seeing its price drop 5.35% to $9,853. Right now, Bitcoin is trading at $9,933. The new Bitcoin drop also meant a lot of billions lost in the total cryptocurrency market cap. While the yesterday's levels were at $306 billion, today the numbers show that the total coin market cap is at $291 billion and again in the lower regions. The possibility of a downside break was enhanced with the new Bitcoin drop. According to data from Skew Analytics, the swift drop resulted in $90 million worth of liquidated leveraged positions at BitMEX. However, what was most interesting for analysts overnight is what happened in the immediate aftermath of Bitcoin and its sharp price correction. On crypto Twitter, we saw many speculating that the new Bitcoin drop put some BTC whales at play. Some were vocal in the Bitcoin news and pointed to a well known Bitcoin whale called Joe007 as one of the main players responsible for Saturday's correction. The CTO at Bitfinex, Paolo Ardoino, posted an image from the Bitfinex leaderboard and tweeted:
“How to recover 10M in 5 minutes@J0E007.”
https://twitter.com/paoloardoino/status/1228726393669853184?s=20 Another popular analyst known for his handle @filbfilb posted in his Telegram group, pointing out that Bitcoin's price dropped as a sell-wall was removed. He suggested that Joe007 took advantage of the thin order books over the weekend in order to slam the BTC price below $10,000 and cause the new Bitcoin drop.
“Looks like finex whale dumped,” filbfilb said.
This is not the first time a crypto whale is implicated in trading maneuvers that impacted the entire spot market. In December 2019, many pointed to Joe007 as he entered a bet with a Dogecoin trader to win 10,000 DOGE and then used an 800 BTC buy-wall to defend the $7,200 level. If we see today's analysis, the Bitcoin price must sustain above the moving average (MA) to give the bulls an opportunity to aim for the upper Bollinger Band arm at $10,516. BTC was not the only asset to undergo a sharp correction on February 15 - the entire altcoin community took serious drops and many alts saw double-digit percentage losses.
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What Pushed Bitcoin Up By 65% In 2 Months?

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Ever since the middle of December, the most dominant cryptocurrency Bitcoin has been in an absolute rally, going from $6,400 to $10,550 and triggering the altcoin news too to post new gains. As data shows, this is a surge of over 60% meaning that the cryptocurrency outpaced many multi-billion dollar assets. But what pushed Bitcoin up that much is still a mystery and today, we are solving it. As we could see from the news, the strong surge came shortly after investors expected BTC to drop off a cliff, meaning that the uptrend has caught many traders off guard. As evidenced by the hundreds of millions of dollars worth of short position liquidation, it was something no one could predict. But according to the top fund manager named Mike Novogratz, what pushed Bitcoin upwards was the liquidity - something that is still driving the shocking rally for the most dominant coin. As he said in the CNBC "Closing Bell" panel, it was “liquidity, liquidity, liquidity” that drove the rally before. Novogratz further elaborated by citing the low interest rates established by central banks all around the world and "people pumping in money" to which he referenced the attempts by central banks to inject capital into their markets through open market operations. As he said, this is what pushed Bitcoin and what led to the increasing demand for many other stocks and assets. https://twitter.com/novogratz/status/1228481777947336704 Obviously, the top fund manager is optimistic when it comes to Bitcoin's prospects for 2020. In an earlier interview with Bloomberg which was published at the end of January 30th, he gave three reasons why he expects BTC to continue appreciating in the foreseeable future. Novogratz expressed what pushed Bitcoin to new heights in the crypto news and said that the main three reasons for the surge were (and still are) the following:
  • The debasement of fiat money
  • Bitcoin becoming digital gold
  • The increasing levels of infrastructure
The investor is confident that what pushed Bitcoin are these three reasons which is why he could see more investment inflows, more opportunities and higher prices in the near future. On a side note, many altcoins have exploded too and confirmed that Bitcoin drove a bull run in their markets as well.
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Bitcoin Bull Run May Last 3 Years With $45,000 High: Tone Vays

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The latest Bitcoin news today feature the regular market analyst and crypto contributor filbfilb along with the veteran trader Tone Vays, both of whom have joined forces and spoke on Vays' YouTube trading channel. During their discussion, each trader talked about the long and short term version of the Bitcoin price now. The analysts summed up that the Bitcoin bull run may last 3 years and find its top at $45,000. According to Vays and his analysis, the Bitcoin price action on the weekly time frame remains strongly bullish as the most dominant coin broke through multiple levels of resistance and is right now on the TD Sequential indicator which is favored by the analyst. Therefore, Vays thinks that the Bitcoin bull run may last for 3 years and top an all-time high. The recent notch of a nine on the TD Sequential indicator and the slowing momentum in Bitcoin's price hint that a one to four candle correction could occur before the cryptocurrency moves higher prior to its halving event. Vays also believes that at the moment, Bitcoin is in a no-trade zone on the daily timeframe and it is short-term bearish. From his point of view, opening a long position on a breakout above $10,400, $10,450 and similar levels would be a safer trader. Alternatively, if the price pulls back to $10,000, acquisitions for long positions in the $9,500 range would be ideal. The analyst filbfilb, on the other hand, commented in the cryptonews by stating that Bitcoin recently exited its reaccummulation phase when it blew through the $9,000 resistance. This is why he expects that the cryptocurrency will eventually burn through the $9,500 and $11,000 zone but there might be some pushback in the lng term. Vays later on asked filbfilb to say whether a Bitcoin bull run may last long and a new all-time high could come. Filbfilb said:
“I think we’re going to struggle to get past $60K. I think that $60K will be a really really troublesome level to get across. I’ll certainly be looking to book some serious profits at that point. Trying to go above $50K to $60K at this point would be a little bit foolish.”
 
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Bitcoin Will Close 3rd Best Month Ever If Current Level Holds This Month

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The benefit of Bitcoin right now is its price level which is above $10,000 and in the five digit zone as we can see from the latest cryptocurrency news. It seems like BTC is having a good time and if everything goes well in February and there is no abrupt drop, Bitcoin will close its third best month ever. A tweet from yesterday by the analyst PlanB shows that the stock-to-flow model best illustrates how successful February has been for the most dominant coin. As he summarized in the tweet:
“Few people realize we are currently in the third best #bitcoin month ever.”
The Bitcoin price news also show that the benefit of Bitcoin in 2020 have been the January gains. Year to date, BTC/USD has shot up by over 40% which makes it one of the most valuable assets out there. Nonetheless, at $10,240 now, Bitcoin will close another good week of trading and if the level holds until March, it will have the third strongest month on record given its performance throughout it. As PlanB also noted, only December 2017 (during the bull run) and June 2019 saw higher monthly closes - at around $13,880 and $10,760, respectively. Bitcoin will close its third best month if it manages to sustain the bullish momentum and the technical indicators show that there isn't some volatility which was previously expected for BTC. According to the stock-to-flow model, Bitcoin will close this month good - and the BTC/USD pair should trade at an average of $8,600 until May's block reward halving which is 19% lower than at present. Many experts think that the main benefit of Bitcoin will come exactly in May during the block reward halving, when further gains are expected. Thereafter, the model also calls for rapid upward movement which will top out somewhere towards the end of next year. Between then and around 2024, Bitcoin and its average price should be $100,000 as per the model. These eye-opening calculations mainly revolve around Bitcoin's status as "hard" money which is the ratio of new Bitcoins compared to the existing supply which shows that it is both low and impossible to manipulate. This is what leads to the frequent description of the cryptocurrency as the "digital gold."  
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