Take sides: Bitcoin swinging between boom and doom

June 18, 2018 11:32 am


The current Bitcoin price currently stands at $6,430.

By end 2018, an initial coin offering (ICO) expert predicts it will be worth 10 times that, at $60,000.

Before it gets there, it might destroy the internet and e-commerce as we know it.

Related: Reasons behind Bitcoin’s fall from grace and price pendulum swings

Boom

Cryptocurrency expert Phillip Nunn predicted in January that Bitcoin would dip to lows in the $6,000 before it $60,000 by year’s end.

He is adamant that this will happen, as reported by the Bitcoinist, an industry site.

Nunn who is the CEO of The Blackmore Group and Wealth Chain Group made those predictions when Bitcoin was half its value sitting at just over $10,000, from the $20,000 price in mid-December 2017.

“The reality is we’re moving from an internet of information to an internet of value. It’s going to disrupt everything; money, record-keeping, legal,” Nunn said.

Read: FIFA WC accepts Bitcoin but is your digital wallet insured for theft?

 Doom

The Bank for International Settlements (BIS) just told the cryptocurrency world that Bitcoin is not ready for prime time, and may never be.

“In a 24-page article released Sunday as part of its annual economic report, the BIS said Bitcoin and its ilk suffered from “a range of shortcomings” that would prevent cryptocurrencies from ever fulfilling the lofty expectations that prompted an explosion of interest — and investment — in the would-be asset class,” reported Bloomberg.

The BIS is an 88-year-old institution in Basel, Switzerland, that serves as a central bank for other central banks.

It said cryptocurrencies are too unstable, consume too much electricity, and are subject to too much manipulation and fraud to ever serve as bona fide mediums of exchange in the global economy.

Hydro-Quebec recently announced will temporarily stop processing requests from cryptocurrency miners so that it can continue to fulfill its obligations to supply electricity to the entire province.

Canada’s biggest electric utility is facing “unprecedented” demand from blockchain companies that exceeds Hydro-Quebec’s short- and medium-term capacity, according to a company statement.

Related: Are you into Bitcoin slalom? There is now treatment for that

Bloomberg said BIS analyzed what it would take for the blockchain software underpinning Bitcoin to process the digital retail transactions currently handled by national payment systems.

Researchers said that the race by Bitcoin miners to be the first to process transactions eats about the same amount of electricity as Switzerland does.

“As the size of so many ledgers swells, the researchers found, it would eventually overwhelm everything from individual smartphones to servers,” said Bloomberg.

“The associated communication volumes could bring the Internet to a halt,” Bloomberg added citing the report.

This adds to a crypto market rife with rip-offs and the latest cyber attack on a South Korean exchange dropped the price of Bitcoin nearly 1% to $6,438 where it stands now on Monday.

The value of the cryptocurrency market has plunged 53% this year to $280 billion, according to CoinMarketCap.

VIDEO: Fundstrat’s Tom Lee sees Bitcoin at $25,000 by year end

Bear country

Bearish red volume is creeping up signaling a significant increase in selling confirming the strong bear trend present since December, said Forbes.

“From a technical standpoint, Bitcoin looks weak, breaking critical support levels sending price headed towards the next major support around $6000,” Forbes said.

“From a technical standpoint for Bitcoin, the price has broken towards the downside out of the symmetrical triangle pattern. This is a bearish sign and if the price stays below this pattern, the downtrend would continue.”

If Bitcoin breaks down further and cannot hold a major support line around $6000 we could see prices head violently lower to its next major support of $5100 and next major support at $4900, according to Forbes.

 

Bitcoin has broken its bearish pattern- Source Forbes

 

 

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Hadi Khatib
By Hadi Khatib
Hadi Khatib is a business editor with more than 15 years' experience delivering news and copy of relevance to a wide range of audiences. If newsworthy and actionable, you will find this editor interested in hearing about your sector developments and writing about it.



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