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Bitcoin halving, cryptocurrency exchange rates, China position

04/16/2020
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Waiting for bitcoin halving; forecasts of economists and analysts on bitcoin exchange rate. China has become the sole leader in promoting blockchain technology.

Cryptocurrency “Whales” Increase Wallets Position

In anticipation of upcoming halving, the large investors began accumulating bitcoins on their digital wallets. Glassnode analysts report that the number of wallets with a balance of more than 1,000 BTC is approaching record levels. In mid-March, there was a slight drop in their number on blockchain, but then the trend was reversed. Today, there are more “whales” in bitcoin blockchain than at the end of 2017. Moreover, a similar situation was observed before halving in 2016.

Bitcoin halving means decrease in reward for the mined block and increase in mining complexity. While now the reward is 12.5 coins, in May it will be halved. It is expected that this will lead to a shortage of offers in the market, as miners will earn less. As a result, the cost of one BTC will increase. However, past experience shows that the price rises with a significant delay.

In addition, researchers note a significant outflow of cryptocurrency from exchanges. The average seven-day value has reached its lowest level since mid-2019, falling by more than 8%. The maximum of this indicator was reached on January 17 of this year; then more than 2,404,786 coins were accumulated on trading platforms. Now this value is 2,214,365 BTC.

Analyst Tone Vays is confident that bitcoin price after halving will increase significantly and he intends to build up long positions. However, Arthur Hayes, BitMEX CEO, disagrees with him. He is sure that the price will drop below $ 3,000 in the nearest future. In the event of the crisis, investors saw a source of liquidity in cryptocurrencies. He never received the status of a reserve asset for them.

The situation is clarified a bit by the position of Bitcoin Cash and Bitcoin SV, whose halving finished last week. After that, network hashrate has halved. It is possible that a significant number of miners will stop mining bitcoin in May, and will switch to more profitable assets. This will further reduce the supply of cryptocurrency No. 1 in the free market.

Cryptocurrency “Whales” Increase Wallets Position

Cameron Winklevoss on the Future of Cryptocurrencies

Cameron Winklevoss, the Head of Gemini, said that the pandemic would bring a turning point in the fate of cryptocurrencies. He is confident that digital coins will receive a powerful incentive for popularization and development. Today, bitcoin accounts for more than 64% of cryptocurrency market turnover; besides, it is the main indicator of the situation. However, for now reality does not give reason for optimism, as since mid-March the price of BTC/USD pair has fallen by 33%.

Cameron and Tyler Winklevoss became the first cryptocurrency billionaires. Despite the fact that after the previous decline in prices their capital decreased, it exceeds $ 1.49 billion. At the same time, the brothers are called cryptocurrency enthusiasts, as they have been successfully earning money on this market since 2013.

Tim Draper, the venture capital investor, is not as optimistic as Winklevoss. He is confident that innovative technologies will now win, and in the medium term, bitcoin price will begin to rise. However, the opinion of Mike Novogratz literally infects with enthusiasm. He said that 2020 will be the year of cryptocurrencies, and bitcoin will be able to renew historical highs. Experts’ opinions vary, but it is already clear that the situation on the market is not simple.

ASICs manufacturer Canaan Creative reported $ 148.6 million loss for 2019, while Galaxy Digital, a cryptocurrency investment bank, lost $ 32.9 million. Swiss Blockchain Federation experts report that about 80% of cryptocurrency and blockchain startups from Zug Crypto Valley are at risk of bankruptcy due to the coronavirus pandemic. It is too early to take stock, but the epidemic has certainly dealt a serious blow to the industry. For instance, the turnover of cryptocurrency futures has almost halved over the past month.

Cameron Winklevoss on the Future of Cryptocurrencies

China Continues to Actively Promote Blockchain Technology

Despite the world crisis, active development of blockchain technologies does not stop. In the first quarter of this year, 212 applications for patents in the field of distributed registry were filed. Moreover, such well-known brands as Microsoft and Sony are among the applicants. However, the Chinese companies remain leaders; they submitted 63% of applications in 2019 and every fifth comes from two leaders, Tencent and Alibaba.

On April 25, China will launch a national platform for distributed registry application service. This was stated by the State Information Center of China. This will significantly reduce business costs for launching their own blockchain projects. While earlier this required about $ 14,000, now the amount will be reduced to $ 280-425.

It became known that the Agricultural Bank of China, which is participating in creation of the national cryptocurrency of China, has launched a mobile application for testing payment system. It appeared in app stores for iOS and Android, but was then removed from there. However, CoinDesk was able to test this solution. Its main functions are the ability to send and receive payments in cryptocurrencies, communicate with other users, control balance and track transactions.

In addition, a technical committee for developing national standards has been set up in the country. It included representatives of 15 largest companies in the industry, and Chen Zhaoxiong, the Vice Minister, was appointed to be its Head. Now, no one doubts that it was China that became the leader in the promotion of digital technologies. While the United States is struggling with the Libra project, China is creating the conditions for launching their national cryptocurrency.

Deutsche Bank analyst Marion Laboure is confident that a national cryptocurrency will appear in the next three years. The issues of its creation are already being studied by a joint group of central banks of Switzerland, Canada, Great Britain, Japan and Sweden together with ECB and the Bank for International Settlements.

China Continues to Actively Promote Blockchain Technology

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