My thoughts on what happened with the bitcoin price this week. I had recently covered a blog post at bitlanders covered here on why I thought the price had gone up. Closing comments were that we can see a drop if and when the sell comes.
Bitcoin Price touched the highs of 2015 by hitting $500 plus at the same time major exchanges were hit by a DDOS attack followed by arbitrage opportunities which caused a bit of concern since the transaction volume of bitcoin took a jump. As such bitcoin transactions started getting delayed to from 3 to 6 hours. Major trading platforms in China saw volumes as large as 2000000 btc in 24 hours. I guess for a person who had just gotten into this it was very shocking and exciting time but as the experts will tell you this has always happened to bitcoin. I do advise all the new investors to weigh the pros and cons of btc first, as its not just about making money on the short term.
In the News:
Bitcoin price had received great news that kept the buy pressure up. One was by Bloomberg which advised to keep an eye on btc, which was later(2 days) followed by research by CNBC which stated that bitcoin will become the 6th largest reserve currency by default at current pace by the year 2030. This was seen by large as a very positive sign and the buying continued.
The above aspects saw the rise all the way upto $500+ before the dumping began. The pull also must have created panic selling orders followed by bots going into sell mode as I mentioned in the blog and therefore saw a fall in price of btc to $360. While predicting the next wave is very difficult we are now seeing a more controlled rate around $380 to $404.
Where will the piece go next:
I am no expert at predicting prices however for traders I suggest sticking with intra-day trades rather then looking to make it big in overnight bull runs. Additionally articles are covered online at our main news site http://www.newsbtc.com and for all other news regarding litcoin dogecoin or bitcoin you can check out http://pk.newsbtc.com where we try to cover everything in Urdu plus cover Pakistan related news about bitcoin in Pakistan
Most people get into bitcoin due to making a quick buck by mining. Once they do however get in they realize that the beauty of bitcoin lies in its theory of what Satoshi Nakamoto presented. The idea was decentralization of digital assets or money or currency. While recently everyone is talking about the technology that is blockchain they fail to realize that its not the blockchain or bitcoin itself that made it famous, it was the underlining principle that your funds should really mean that they belong to you.
Fast forward today and we see most people trying to setup mining farms or make it big by trading bitcoin and crypto currencies. While I believe that bitcoin exchanges have made a big impact and are helping it move forward and making it available for the masses, we still tend to lag in actually utilizing bitcoin the way it was intended. Bitcoin was suppose to bridge the gap between third party holding your funds and charging you for utilizing them to a complete peer to peer system. I believe if we are to move forward it is very important to utilize bitcoins for buying and selling and creating opportunity to use bitcoins everywhere.
Now the question comes to mind is what I can do other then store it for value or use them as a safe guard against what recently happened in Greece? Well you can do alot now. Big name companies have begun to accept bitcoins as a payments. The reason behind this is simple its cheaper to accept bitcoins then credit cards, with no chargeback issues plus a low fee of 0.0001 btc it makes sense for people to accept and pay in bitcoins. Services such as Dell, Microsoft, Vultr(a VPS service), namescheap(domain and hosting services), expedia(hotel, ariline and local transport), cheapair(airline tickets) and topup24 (buy mobile prepaid credit) makes it easy for anyone around the world to utilize bitcoins.
Sitting in Pakistan where credit card acceptance may be one of the lowest in the world we see bitcoins as gateway. The general population of Pakistan is below poverty level and hence doesnt really have access to the international gateways like most countries do. Bitcoin can be a bright light at the end of the tunnel, donations, payments, remittance can be utilized to the micro level bitcoins. And now you also have a place to utilize your bitcoins not just trade them at trading exchanges. But if you are just old fashioned and still want to trade bitcoins for profit you can always join us at Urdubit.
On ending note, Start using bitcoins like they were meant to 😉