Wave of Sales in Bitcoin Still Continues

Josselyn Avila
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Wave of Sales in Bitcoin Still Continues

The cryptocurrency market remains under pressure, leading to a new wave of sales in Bitcoin, thus causing the loss of the key support of USD 8000.

The collapse of the cryptocurrency market does not seem to stop, which is leading to a new wave of sales in Bitcoin. This is causing the leading crypto asset to lose the key support of USD 8,000.

In most of the sources consulted it has been found that the drop in the price of Bitcoin is due to the sharp decline in the Hash rate on September 24th, 2019. In a matter of minutes, it went from 98,000,000 TH/S to 57,000,000 TH/, which represents a fall of 41.83%.

At the time of writing this article, the Hash rate has already recovered above 90,000,000 TH/S. The truth is that investor fear has achieved an extreme level, at least as reflected in an indicator of Bitcoin market sentiment known as the Fear & Greed Index, with a value of 12 points.

What Should Be Expected from Bitcoin

It is expected that bulls and bears will be fighting a tough battle over the USD 8,000 zone, which will be the great value to be defended by the leading currency. In the event that investors are not able to close the day above 8k, it may result in a new wave of sales in Bitcoin.

Investors should also keep close sight of the movements made by the whales within the next few hours, since they may provide clues as to whether the market will continue to fall or begin the upward correction. All the information on this activity can be followed online through a crypto whale tracking application.

In addition, it is necessary to follow closely the evolution of the futures of Bakkt, which so far have been really disappointing. This factor has also had a negative influence on the price of Bitcoin.

Investors should be attentive to whatever may happen to the options in Bitcoin offered by Chicago Mercantile Exchange, since their date of expiry is approaching and they have undoubtedly stimulated a wave of speculation leading to the current fall of Bitcoin.

Imminent Recovery in Sight

Many people are talking about an imminent recovery of Bitcoin, supported above all by the “offer” of its price. The upward trend will continue in the medium term, and so betting on the leading cryptocurrency at this level is more than interesting, according to several experts consulted.

All seems to indicate that within the next few days, after the speculations as to the dates of expiry dissipate, the price of Bitcoin may rise sharply and even recover its USD 10k price.

It has been observed on other occasions that Bitcoin has the ability to recover from extreme situations, such as the one it has experienced in recent weeks. It may take the leading cryptocurrency some time to return close to its all-time high but will very probably manage to do so. Investors have been placing great trust in Bitcoin, and so they still bet on its great growth potential.

By Willmen Blanco

Blockchain Market Will Surpass USD 16 Billion By 2024

Willmen Blanco
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Blockchain Market Will Surpass USD 16 Billion By 2024

The main driving factor of this momentum will be greater adoption by financial institutions. The compound annual growth rate on a global scale will be greater than 75%.

The international blockchain technology market will achieve a significant growth in the next five years. A report produced by the U.S. firm Global Market Insights states that this technology, which is part of Bitcoin as a digital system, will have a capital injection that will exceed USD 16 billion by 2024.

The consulting firm prepared a 180-page report entitled Blockchain Technology Market in which it analyzes the factors that would encourage this growth. The report also indicates the areas that will achieve greater development and the regions in which greater investments are expected.

The global blockchain technology market will be driven mainly by greater adoption on the part of financial institutions. It is estimated that the Asia Pacific blockchain market will register a prominent compound annual growth rate (CAGR) of more than 87%, according to a press release by the company.

Global Market Insights noted that the value of the blockchain market was about USD 200 million by 2017. However, it said that it will grow more than 80 times with an estimated annual rate of 75% by 2024. That situation would leave the door open the door to the development of solutions in multiple fields such as identity management, international payments, application development, government sector, health care, infrastructure providers, and the financial sector.

The report is comprised of nine chapters and particular attention is paid to the blockchains to which the third segment, entitled Perspectives of the Global Blockchain Industry, was dedicated. It should be noted that here they analyze the types of blockchains, regulations, use cases, consortia, potential growth, limitations and the challenges for the future.

Growth Announced

The Global Market Insights report was released some days after the research and consulting firm Gartner, through its research director Fabio Chesini, noted that the deployment of blockchains in the financial and banking sector poses several challenges. The executive explained that the adoption of interoperability standards in this field will take between three and five years, after a continuous maturation process, in order to become a dominant reality.

Announcements have also been made in Latin America about the adoption of blockchains in the local financial system. On September 12th, the Central Bank of Chile stated that in November of this year it will publish the results of its tests with blockchains.

Known as blockchain, or distributed accounting, this technology is part of a group of protocols introduced through the digital system Bitcoin and its associated cryptocurrency BTC. Its design allows conducting transactions between two or more people reliably and securely through the Internet, but without the participation of intermediaries or a centralized authority.

To conclude, it is worth reiterating that the adoption of blockchain allows the creation of technological solutions in different areas. However, several years will be required before its final adoption in the financial and banking. This technology offers the advantages of being reliable and secure, which are desired features among users.

By Willmen Blanco

Capacity of Ethereum Blockchain Expanded by 25%

Willmen Blanco
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Capacity of Ethereum Blockchain Expanded by 25%

About 25% of all activity in Ethereum is due to Tether. The Fair Win game has accumulated USD 1.17 million in transaction fees.

The capacity of Ethereum has been expanded by the mining community to allow the network to process more transactions per second. This is a consequence of the increase in network traffic, largely due to the controversial stablecoin Tether and a gambling game called Fair Win.

Ethereum co-founder Vitalik Buterin said last week that block producers were beginning to increase GAS limits due to network congestion. In Ethereum, GAS is a separate cryptocurrency that is used to pay transaction fees and the GAS limit essentially controls the number of transactions that can be included in a block. It is similar to the Bitcoin block size limit.

However, GAS limits are more organic in the Ethereum network. Each miner can increase the GAS limit by 1/1024 of its current value, slowing it up or down, as the network gradually adapts to its surroundings.

Nowadays, miners continue raising the GAS limit, which causes it to reach above 10 million per block, an increase of 25% in the last week. This means that each Ethereum block can include about 25% more transactions than the previous week.

This allows the Ethereum network to process more transactions per second, thus helping to keep the fees lower. This means that the blockchain will grow faster, which makes it more expensive and difficult for the nodes to continue running the network.

Reasons for Congestion

Tether seems to be the main culprit of the growing number of Ethereum transactions. In recent months, the stablecoin has been eliminating Tethers issued in the Bitcoin network, and replacing them with tokens issued in Ethereum. Since so many Tether transactions are made every day, this has placed a heavy burden on the Ethereum network.

However, Tether is not the only cryptocurrency that occupies such a large amount of space in the Ethereum network. Fair Win, a blockchain-based gambling game, has accumulated USD 1.17 million in transaction fees in the last 30 days, proving that it is responsible for a large number of transactions.

According to intelligence provider Glassnode, decentralized finance (DeFi) applications are also putting pressure on the network as they become more popular. It notes that about 45% of transactions were made through smart contracts, which are largely used by DeFi applications.

The problem reached a climax on September 20th, when Ethereum’s daily transaction fees exceeded those of Bitcoin for the first time since March 2019. At that time, Ethereum users paid USD 207,000 in transaction fees against just USD 180,000 for Bitcoin. Ethereum fanatics consider this was something good because it showed that the network was in great demand.

However, Tron’s CEO Justin Sun, Ethereum’s rival, took advantage of the situation, encouraging people to use their network in exchange for lower fees. In the past, it has tried to tempt Ethereum developers to move away from the platform by offering them grants, but with little success.

By Willmen Blanco

Argentine Monetary Policies Counteracted by Bitcoin

Willmen Blanco
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Argentine Monetary Policies Counteracted by Bitcoin

Bitcoin’s monetary policy is not adjusted by decrees of any State. Argentina has tried to curb the economic crisis by injecting more money into the economy.

An increase in the monetary base in Argentina implies a reduction in inflation but those who adjust the issuance of money presume that its distribution is equitable among citizens and commercial banks. For this reason, those who thought of Bitcoin’s monetary policy chose a model that did not depend on individual decisions.

Due to the difficulties in financing Treasury bills and the significant devaluation of the peso, the authorities decide from time to time to inject more money into the private and public system. In this way, the tight liquidity does not create a bottleneck that prevents the payment of commercial commitments.

Theoretically, the measure allows increasing the amount of circulating bills and coins, considering the reserves of commercial banks and the Central Bank. However, the goals are actually difficult to meet, since each quarterly adjustment is based on how the economy is expected to behave in a 90-day period.

The government needs to adhere to Argentina’s agreement with the International Monetary Fund (IMF), which would only accept a 2.5% increase in the monetary base if it does not interfere with the international organization’s credit program. By the way, Christine Lagarde, former director of the IMF, said that without the agency’s intervention Argentina’s crisis would be much worse.

Unlimited Money Supply

In general, the currencies of countries such as the United States, Venezuela and Zimbabwe were sufficiently supplied at the time of their respective market launches. However, unlimited issuance policies accelerated their respective values as those regulators do not even consider the possibility of an erroneous distribution of value from the beginning.

Monetary inflation, in the context of speculative markets, has led governments to increase the supply of liquidity to blame crises on speculators and the market. If governments were forced to use Bitcoin, they would not be able to devalue the currency on the grounds that more liquidity is needed.

Bitcoin’s Monetary Policy

Bitcoin’s value lies in its ability to cope with the status quo of monetary policies that governments impose on citizens as a form of control. Camilo Jorajuría suggests that, compared to Bitcoin, states are archaic entities, so measuring the two systems would seem an outburst.

Bitcoin does not alter its monetary policy by personal or government decisions of any kind. The basis for the changes in the Bitcoin code is in the discussions of the community and the developers. And yet there are defined limits to regulate the amount of cryptocurrencies that enter the market.

Bitcoin allows any participant in the miners’ network the possibility of obtaining cryptocurrencies issued as a reward for their willingness to contribute to the security of the transactions history. No single entity decides on the issuance of cryptocurrencies, since monetary policy is programmed, and it is only possible to issue 21 million units over a pre-established period of time.

New currencies are produced, which means that the money supply increases by a planned amount, but this does not necessarily result in inflation. If the money supply increases at the same rate as the number of people using it, prices remain stable.

By Willmen Blanco

The New York Stock Exchange Opens Spaces to Bitcoin

Maria Rodríguez
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The New York Stock Exchange Opens Spaces to Bitcoin

The market will allow investors to obtain their earnings in Bitcoins and store them in their own wallet.

Recently, one of the most important stock markets in the world, the New York Stock Exchange (NYSE), officially introduced Bitcoin among the assets that can be invested inside the stock market. In this way, this cryptoactive achieves direct recognition as one important cryptocurrency among traditional markets.

It is known that operations with this asset began on Sunday 22nd in New York, midnight at GMT so this asset is now available in electronic exchanges.

In this way, the Intercontinental Exchange (ICE) platform can be used so that stockbrokers can make the usual investments in the contracts that Bitcoin will have in the future. In this way, the cryptocurrency will be treated like any other value such as gold or oil. That is, citizens and companies can invest in Bitcoin when it experiences a rise or fall in the market.

It was known that Bakkt, the official subsidiary of ICE, will have control of the operations since this exchange procedure would begin in November, but they experienced a delay of the project due to technical problems.

Bitcoins can be purchased through many other small platforms by purchase or by asset exchange. However, this type of operation can now be conducted in the main figure of Wall Street, the New York Stock Exchange. This financial institution has prestige, history and legitimacy since many years in the world markets.

Other Exchanges Recognize Cryptocurrencies

Since the end of 2017, another of the most important stock markets, the Chicago Mercantile Exchange (CME), enabled the possibility of investing in future contracts in projects involved with Bitcoin. Therefore, more than 7,000 contracts have been made since that time, calculating an approximate value of more than US $ 350 million, among all crypto-related projects.

It is known that this investment system in the Chicago stock exchange works by contract and by value investment. That is, once the contracts expire or conclude, investors receive their earnings in the equivalent of Bitcoin in dollars so this prevents investors from having Bitcoins.

In New York, the procedure is different. Users are able to obtain Bitcoins, contrary to what happens with the commissioning of Bakkt. In the New York Stock Exchange, investors will receive their earnings in Bitcoins and also have a backup system where they can store their money in a security system, something similar to a cryptocurrency wallet.

Kelly Loeffler, who is Bakkt’s Chief Executive, said they are looking for investor confidence. “Our first objective is to provide an ecosystem in which we can feel confident”. Now, the New York Stock Exchange is one step closer to those interested in contracts with the cryptoactive, despite the large number of traditional investors who still distrust the virtual currency market.

This project was launched before the announcement of Facebook, about its cryptocurrency Libra, which is expected to be launched in mid-2020. However, it could bring to this stock market a greater vote of confidence when this other asset is finally released.

By María Rodríguez

AMTS Integrations Allow B2Broker to Expand Its Liquidity Resources

Willmen Blanco
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AMTS Integrations Allow B2Broker to Expand Its Liquidity Resources

B2Broker offers an easy to implement solution with access to more than 800 trading instruments. The new integration of B2Broker allows leverage of 1:100, with low spreads.

It was announced that B2Broker integrated with Forex technology provider, Tools for Brokers, a leading liquidity facility sales company, and AMTS, a provider of high-tech bridges and modules to extend its multi-asset liquidity resources.

B2Broker is a provider of technology and liquidity solutions for the cryptocurrency industry and currency trading. This new integration of B2Brokers with Tools for Brokers and AMTS will allow customers to use the bridges of these platforms to access and benefit from the higher liquidity available in the industry.

In parallel with this new integration, B2Broker has made a new offer with no minimum fees for the first three months, which will allow all new customers to take advantage of the leading liquidity services in the industry, with payment terms favorable for a limited period of time. Regarding the announcement, the CEO and founder of B2Broker Arthur Azizov notes that the expectation of the company is to provide the most extensive liquidity resources in the industry.

What B2Broker Offers

B2Broker empowers businesses by providing them with the highest liquidity, with highly competitive trade costs. Being a leading liquidity provider in the industry, B2Broker offers an easy to implement solution with access to more than 800 trading instruments, including 39 cryptocurrency cumulative distribution function (CDF) and 7 asset classes with several currencies from the same account.

This company provides liquidity in Forex in more than 75 currency parities, adjusted spreads ranging from 0.00000 pips, without rejecting operations and with leverage of up to 1:100. Cryptocurrency liquidity offers include both marginal cryptocurrency contract for difference (CFD) and Spot (cash) liquidity, such as the physical delivery of an asset.

While CFD liquidity covers the world’s equity markets and the ETFs of the main exchange houses, it also covers more than 10 world exchange indices, with the ability to trade CDF in 39 cryptocurrencies, energy and CFDs of metals.

How It Works

The liquidity offered by B2Broker is an aggregate from the main liquidity providers, including cryptocurrency exchange houses, non-bank liquidity providers, currency brokers, cryptocurrency brokers, market makers, over-the-counter (OTC) orders from institutional customers, investment funds and hundreds of customer brokerage orders, resulting in the largest liquidity supply in the industry.

B2Broker collects and distributes liquidity through various distribution systems including OneZero Hub, PrimeXM X-core, B2BX Marksman and FIX API, as well as the Tools for Brokers bridges and the ECTS bridges from AMTS. In this way, it offers multi-connectivity and cross-connection for MT4, MT5, B2Trader, DevExperts (DxTrade), AlphaPoint, xStation and cTrader platforms.

B2Broker Liquidity Process

The B2Broker model is very simple and uses a transparent agency model. The company adds liquidity from the leading first-level liquidity providers within its ecosystem and provides this liquidity to stockbrokers, who are then connected to B2Broker’s liquidity supply in just five minutes.

Once connected, they find a wide range of other benefits offered by B2Broker, including nominal marginal accounts of BTC, XRP, ETH, or nominal accounts in any fiat currency such as USD, EUR, GBP, direct access to greater institutional liquidity resources, in addition to the lowest fees in the market, super tight spreads, large volumes, no negotiation, no rejection of orders or last visualizations for execution, 24/7 trading hours and technical support, among others.

By Willmen Blanco

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