Some famous names in the financial or economic industry are buying Bitcoin which is a good sign for Bitcoin.
Bill Miller is one of the renowned names in Bitcoin community. According to Forbes report on Tuesday, Bill put 1% of his net wealth into Bitcoin in the year 2014. The report reveals that the cryptocurrency is one of the top properties in Miller’s $120 million hedge fund.
Showing its image of volatility, Bitcoin fell in January 2014 from a peak of $1023. According to CoinDesk, on October 2014, it was just around $287. That’s the reason which puts the return of Miller’s Bitcoin anywhere from 126% to 707% – based on the price of Bitcoin which was $2315 on Wednesday.
The other name is Josh Brown – Chief Executive of Ritholtz Wealth Management and a CNBC contributor. In a blog post on Tuesday, Josh stated that he used Coinbase to purchase Bitcoin by a “Small Amount of Money”.
He said I think I have been through proper seasoning at this point. In case it does not drop this year after the fork, the developers argue that this could split Bitcoin. He revealed that it is going to drive mainstream among financial pros. Brown said: My main thing is, this would not go away”.
If a greater number of developers don’t favor an upgrade system for the Bitcoin, the cryptocurrency may split on 1st of August. However, a majority of Bitcoin miners have started to show their support.
Lastly, the announcements of this week follow the Standpoint Research’s Ronnie Moas. Ronnie Moas purchased a small amount of Bitcoin and thinks that it could hit $5,000 within a year.
The majority of people is not familiar with the concept of Bitcoin. They think of it as an online scam tool that criminals use to steal money; which is not true. It is a peer to peer, a digital currency which is independent of any sort of third-party influence.
There are several advantages of using Bitcoin and those with the experience of Bitcoin transactions are fully aware of how to capitalize on this cryptocurrency. However, if you are new to the concept, you will need to go in depth and know how it can benefit you.
Benefits of Bitcoin:
Bitcoin Advantages for New Users – Easy to Open a Bitcoin Wallet Address:
Opening a Bitcoin Wallet Address, also known as “wallet”, is pretty straight forward. No credit check ID, citizenship papers, age requirements or passport are needed to open the account. Since there are no age restrictions, anyone can open a Bitcoin account, even if it means a 10-year old kid.
Want to learn more about Bitcoin wallet? Read our post on how to make a Bitcoin wallet.
No Need for Bank Approval to Launch Your Business Idea:
Starting new business is a difficult financial task as you will be required to have a bank loan or credit check. But with Bitcoin, launching a new business is not a problem anymore.
All you need is a QR code. Once you have it, post it on a social media platform and get support for your next business idea.
The idea may include offering services, a product or something valuable in exchange for Bitcoin.
Quick Access to The Rest of Digital Currencies/Altcoins:
Digital currency is a vast world and Bitcoin is just a small part of it. The other part is altcoins in which hundreds of millions are invested each year. To access the Altcoin market, you will need to have Bitcoin as it is to digital currency what US dollar is to traditional currency worldwide.
Before you move ahead, don’t forget to read what are some alternative currencies to Bitcoin.
Bitcoin IPOs are becoming a new financing option in the world of Bitcoin. The users can offer bonds, stock, and IPOs and buy/sell shares of their companies without the need of any established stock exchange.
The Cryptocurrency Has Numerous Advantages as Compared to Traditional Currency:
Bitcoin can do many things that dollar can’t. For example, it offers family wallets with pre-set spending limit which allows your kids to shop only at certain stores and at certain times. Moreover, it gives the owners the option to program digital currency for different parameters which are not possible in fiat currency.
Bitcoins Are Independent:
If you don’t like being watched or controlled by your government or third party, then trading in Bitcoin is the best option for you.
Bitcoin is more like a technology. A technology with code and encryption keys. The technology is not controlled by any government or central bank. The only person who controls Bitcoin is the one who owns it.
These are some advantages of Bitcoin for new users. The currency is relatively new and still, needs plenty of improvement. However, with the kind of structure it has and the rapidly growing usage, the currency is going to make a great impact on future markets.
Most of the cryptocurrencies in the cryptocurrency market have fallen by more than 16% and the market has experienced another major correction as the bitcoin price has dropped by 14%.
The price of Bitcoin has dropped below $9,000 and is currently trading at $8,704. Many investors are now wondering about the bitcoin crash reasons.
The major cryptocurrencies like Bitcoin Cash, Stellar, Ripple and Cardano have also dropped by 12-16%. Analysts have shown their concern towards Ripple because it fell below the $1 mark for the second time in two weeks.
For many bitcoin investors, the mark of $10,000 is a psychological threshold. Similarly, the $1 mark indicates the same threshold for XRP or Ripple investors. We can clearly see that Ripple’s price has recovered after dropping below $1, whereas the XRP’s price has fallen below $1 twice within the past 2 weeks.
Other cryptocurrencies are also struggling to show signs of short-term recovery. Cardano and Bitcoin Cash have remained constant for weeks and have continued to maintain their positions as the 4th and 5th most valued cryptocurrencies in the market. In the past week, these two cryptocurrencies have dropped significantly, while the other cryptocurrencies have moved in the same trend. Over the last 24 hours, many major cryptocurrencies have suffered losses and also, there’s been a decline in the value of many virtual currencies.
The whole cryptocurrency market has fallen by almost $120 billion and the previous month had been a slump for the cryptocurrency market. Even after the major corrections, the market usually records gains in the mid-term, often on a monthly basis but based on the momentum indicators, daily trading volume, and overall interest, it looks dubious that we’d see a rise in the cryptocurrency market by a large margin in the short-term.
Well, it is a feasible period for many newcomers to enter the cryptocurrency market, but on the other hand, it is not actually the best time to invest in the market. Investment in the market would be an option if it shows some signs of recovery in the short-term, but at this time, the most important thing is to expand the assets and minimize the risks.
What Triggered the Crash?
We’ve seen that the cryptocurrency market was hit with a series of developments and negative news. Even some regions are still struggling to recover from trading ban FUD that was started by the government of South Korean and now, the Indian government.
The cryptocurrency market was typically composed of casula investors and speculators, who’ve been keeping their eyes on the short-term profits. However, the speculators left the market after the slump in the price of most cryptocurrencies. So apparently, the market needs to struggle in order to recover.
On Tuesday, during the Senate hearing on the potential cryptocurrency regulations, the chairmen of USA’s top two market regulatory agencies largely stuck to their script. The hearing was held by the Senate Committee on Urban Affairs, Housing, and Banking which affected a wide range of regulatory concerns that are linked to the blockchain and cryptocurrencies technology, including trading platforms, ICOs (initial coin offerings), derivatives and ETFs (exchange-traded funds).
Both Giancarlo and Clayton expressed concern in their statements that at this time, the cryptocurrency exchanges are delimited at the state level and not on the federal one. They both repeated that in the future at some undefined point, there’s a chance that the Congress may try to improve the ability of federal regulators to manage the spot markets.
The chairman of SEC (Securities and Exchange Commission), Jay Clayton, tried to shift the conversation back to the ICOs constantly and noted that he hasn’t seen an ICO that shouldn’t be catalogued as a security under federal regulations. The same statement he has been repeated on several past occasions as well.
He likewise gave a perception on why the SEC has struggled against the fund sponsors attempts to list Bitcoin ETFs and explained that because retail investors are largely targeted by the ETFs and are primarily one-sided markets, rules presiding their creation need to be strict than those for futures indentures, which are supervised by the CFTC. He added that the SEC will be open for revising its stance on Bitcoin ETFs if these rules are gratified later.
Meanwhile, Chairman Giancarlo grabbed the attention of many Bitcoin fanatics with some comments that seemed to be hat tips to the community.
The very first word that he used during the Congressional hearing was “hodl” and till the end of the hearing, he continued to contradict the common misconception that the coattails of blockchain technology are purged by Bitcoin.
He told the committee that it’s really important to reminisce that there’d be no blockchain if there was no Bitcoin. Overall, the whole hearing didn’t end up as a thunderclap, however, it proved what has been already made ostensible ‘that new cryptocurrency regulations are expected to be coming to the US markets soon.’