Bitcoin has updated the annual minimum. Who is to blame for the market crash?

November 14 will be remembered for a long time. Even at lunch, the market capitalization of cryptocurrencies was 209 billion dollars, and in the evening figure unexpectedly dipped to 187 billion. Bitcoin was designed to peak 5765 dollars. Other cryptocurrencies from the top, not counting the Tether, lost from 10 to 16 percent of the cost. To write off what is happening on the mysterious whales it is impossible — the situation is much more serious. Understand what is happening.

The collapse took place on the eve of the hard forks of Bitcoin Cash November 15. Update the network was the reason for the present war among developers. Recall, the future BCH can become three coins:

  • Bitcoin ABC with the ability to create smart contracts.
  • Bitcoin SV with increased block size to 128 megabytes;
  • Bitcoin Unlimited with the advantages of the first two options.

ABC support Bitcoin Bitmain, Binance, and Coinbase. SV Bitcoin will get support from CoinGeek, SV Pool, and Cobra. What is particularly important for SV acts, Craig Wright, also known as the “Factory”. Despite the nickname, it should not be underestimated. Have to Wright a huge impact in the community, BCH and a large stockpile of bitcoins. Some sources say a million BTC in the wallets of Craig.

Why Bitcoin fell

As we approach the date of update, the situation became more tense. Monday active supporter of BCH VIN Armani spoke about the plan Craig Wright and Kelvin Ear to hold a 51 percent attack on the Bitcoin network Cash and other cryptocurrencies. The first is the need for the decline of canplete Bitcoin SV.

The next day, Calvin commented on the statement indirectly confirmed it. According to him, in the plans there is nothing personal is just business.

“Bitmain is trying to translate it into the plane of personalities. For team CoinGeek we are talking only about profit, and BitcoinSV is the only option for miners who want to earn. We need to protect our substantial investment in mining.”

The situation has continued to evolve. After the fall of the market version connection with the upcoming hardforum Bitcoin Cash seemed groundless, as he sank BCH stronger than the other coins.

However, things can be much harder. Before the fall of the market Craig published the tweets that raise many questions.

First, he spoke about the “war room” where the team is ready to conduct specific tests. For a start, they had to throw “shit” in the face of ABC and “to legitimize neutral money”.

Wright then addressed a message to all miners of Bitcoin. In the case of switching on the extraction of BCH miners will have to Finance the process at the BTC. So — sell it for dollars and thereby reduce the rate of the home currency. Because have to sell a lot, for the market of Bitcoin will not remain place. In the end Craig even hinted at the chance of dropping BTC to 1000 dollars.

Following this, he mentioned the competition in the face of Jihan Wu and Roger Faith. Wright said that they will have to merge a lot of bitcoins to pay for rented Hasrat. If “war” drags on, users should expect the Bitcoin exchange rate at the level of 2014. That is $ 600 per coin.

Now the market has fallen further. Capitalization is 180 billion dollars, Bitcoin has dropped to $ 5,500. If the miners will follow the advice of Craig and will switch to BCH, the rate of BTC will fly deeper. And even if it is not, to play havoc can a panic among holders. Still such a shock after a protracted flat and the lack of volatility is too.

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A College student lost cryptocurrency $ 755 000 (119,28 BTC): Blame the bears?

A bear market has hit many cryptocurrency traders. But while many investors have had to withdraw their funds left, and those who now literally crying from damages.

For example, a College student who bought the Bitcoin at a price of $ 5,000 in 2017, have expressed their disappointment with the loss of $ 755,000 (119,28 BTC), asking like-minded people, not if he destroyed his life. The fact that the guy was left alone with taxes on cryptocurrency trading in the $ 400 000, which he is unable to pay.

A user under the name Throwaway283921 explained on Reddit that started trading cryptocurrency in may 2017, after he learned that his friend traded Ethereum. He signed up for Coinbase and invested $ 5 000, which was half of his savings.

He’s started to sell Bitcoin in a pair of Ethereum, driving means back and forth, making the end of 2017 more than ten-fold increase in initial investment and in December of 2017 earned a whopping $ 880 000 (139,03 BTC).

The purpose of “Throwaway” was to withdraw money after he crossed the 1 000 000 dollars. It is a peculiar tradition followed by most cryptocurrency investors, but the hero of our story foolishly invested in a fraudulent ICO, which has led to irreparable loss of his condition. On arrival of bears on the market the guy managed to lose about 755 000 dollars, saving all of $ 125,000.

He explained:

“I didn’t know anything about taxes, so I didn’t bother putting nothing on hold. Me that nobody taught. I invested in several failed ICO, tokens which fell without any chance of recovery. Today my portfolio is $ 125 000 and not $ 880 000. The amount of taxes I have to pay for 2017, is approximately $ 400 000 (lives in California)”.

Now the student, following the advice of the cryptocurrency community to consult with a tax lawyer specializing in crypto-currencies and alternative investments.

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Who is to blame for the recent fall in the price of Ethereum?

According to the study TrustNodes, published 13 September in the last 10 days. ICO-projects sold three times more Ethereum (ETH), than in August.

160.000 tokens, Ethereum sold over the past few days, account for nearly $ 33 million at the current rate. According to the study TrustNodes, 4 September, a number of ICO projects sold 82.000 ETH, after which there was a sharp decline in the price of ETH.

Average daily sales of ETH ICO-projects ranged from 1.000 to 5.000 ETH in August, while periodically amount reached 10.000 ETH. However, in September, 10,000 ETH has become almost a daily norm.

According TrustNodes, the total amount of Ethereum sold ICO for the last 30 days, is 283.000 ETH, which is nearly 60 million US dollars at the current rate.

Recalling Santiment, TrustNodes States that the largest share of sales is associated with ETH project Digix. According to CoinMarketCap, the project Digix owns Ethereum in the amount of about 150,000 million dollars, which greatly exceeds the current market capitalization of the coin itself DigixDAO project, which is 69 million dollars.

ICO-projects that raised funds in Ethereum are the main reason for the recent fall in the price of ETH, since some of the projects, withdrawals to cover current and future costs amid fears of a bear market. We will remind that last week the price of Ethereum fell below 170 dollars, which is the lowest rate in 2018.

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