Ankur Agarwal is the author of “The 2nd Wave of Bitcoin Is Coming: Are You Prepared?”, he keeps a keen interest in Cryptocurrency investments and is an ICO advisor and an Email Marketing expert. We had an extensive talk with Ankur and came to some conclusions. In this scoop, we share some insights and views on bitcoins and future of cryptocurrency with our readers.
Bitcoin is a decentralized digital currency which was invented to enable peer to peer transactions without any bank. Traditional currency goes through a central payment process like your credit card company. But all bitcoin transactions are processed by a large distributed network of computers running special software. Whenever a transaction is done, the network records the sender’s and receiver’s Bitcoin addresses and the amount transferred and enters this information until the end to a ledger or record called a Blockchain. The blockchain is then updated to 100 times per day and is sent to every computer that processes Bitcoin. Because each transaction is encrypted with public key cryptography, it is almost impossible to crack the network. This verification is processed by Bitcoin miners. The mining software works by grouping recent transactions into blocks which are only accepted by the rest of the network if the block is hashed correctly, which requires the computer to find correct numerical values.
So what’s in there for the members of the processing network? Once a computer does successful processing of block, it is added to the blockchain and the system generates a new Bitcoin that goes into the miner’s digital wallet. So the computer literally ends up creating money for them out of nothing.
Latest trends in Bitcoin:
Since early September, the price of Bitcoin has gradually increased from $6100 to $6550 testing the $6800 resistance level on two separate occasions. Bitcoin has experienced 4 dips in its price in the past 30 days and these are significant. Every consecutive drop in the price of the Bitcoin stabilized in a higher region than its previous decline in the value.
On September 9th, the price of Bitcoin dropped to around $6100 during the first fall in its month. Then on September 16th, a week after the initial drop, the price of Bitcoin dropped to $6250 which is once again at a higher point than its previous drop to $6100. So on September 26th, around 10 days after the second dip, the price of Bitcoin dropped to about $6400, $150 higher than the recent Bitcoin fell on September 16th. Recently on October 4th, in its latest minor price drop, Bitcoin dropped to the higher region of $6400.
Now you may have picked up a pattern and basically what’s happening here is that the price is gradually rising. Although there are dips, the dips aren’t as severe as the dip before the one that you might be experiencing at the time. So basically you are seeing price growth and a light dip. Even more price growth which is more substantial than the last rally followed by a dip which isn’t as low in price as the previous dip. This pattern is a kind of classic pattern for an asset that is starting to stabilize and this might be a good thing to see.
Considering that, Bitcoin has seen this $6000 support level strengthening and the momentum of the asset at $6550 intensify, it is entirely likely that the coin will continue to be in gradual recovery throughout the month of October. A rapid increase in price from $6000 to a higher region like 7000 and 8000 in the short term, is not likely due to the decline in volume. Probably, you’ll not see the explosive growth that you saw in the past but the growth is still going to happen.
Now on October 6th, a popular global news channel reported that the volume of Bitcoin fell from $4 Billion to $3.2 Billion on the coin market capital and from 2.6 billion to 2 billion on coincap.io. It suggests that the exponential increase in the price of Bitcoin is not necessarily in play in the short term. It is demonstrated throughout September that if Bitcoin continues to sustain its momentum, it is possible that it can break out of the $ 6800 resistance level and potentially eye on the entrance into the $7000 mark.
Future looks exciting with Cryptocurrency:
The blockchain technology will deliver more exciting opportunities by the beginning of the third decade of the 20th century. The focus would not be just on the crypto-assets like Bitcoin or Ether but also into the application and higher level utilities that people are building upon it. The crypto assets like Bitcoin, Ethereum or Altcoins really represent a commodity that is required to fuel the applications built on the top of it. That is why the investors can think that they can invest at the infrastructure level and increasingly everyone is becoming part of it. As of now, the crypto market is quite volatile, and the industry is not much acquainted with its regulation. Therefore in the coming future, there would be more balanced regulation over the present situation delivering low-risk investments. We have just scratched the surface.