Is Bitcoin worthy role of a currency

Bitcoin is not as competitive as a payment system, so its value can be in the role as a currency, but a disastrous currency.
In the last article, Bloomberg addressed the question of whether Bitcoin will replace payment systems exist and concluded that no. So Bitcoin currency can become good?
Money is an extremely complex concept, although it seems simple when using 5 USD to buy a meal. However, the majority of economists agree with two of the core functions of money: It is the intermediate material exchange and the storage value.
Function Vectors exchange value of location transactions
A vector of exchange means people will take the goods to you in exchange for money. And available places are available to exchange goods and services take Bitcoin, but not many places like that. To compete with the currency Bitcoin global, need a place to store almost priced in Bitcoin.
Volatility
If a trader, would you hold a coin extreme volatility in the next 6 months can buy a car or brand Freedent gum package? Only 6 hours can make a huge difference in the price of this currency.
Overall, merchants do not like to accept payments with basic values more or less than the price of goods at the time they deposit money into a bank account. If accepted, they will ask for a fee to offset the risk. This will make Bitcoin less attractive in the eyes of consumers.
When selling people something, that they are buying a consumer choice in the future, and they want to know that option will be worth how much before they seek labor force actually, values and principles materials for it. In other words, while the buyers want a medium of exchange, sellers want a store of value.
Function stored value
Lot material stored value will fluctuate.  Stocks and bonds volatile than cash. Gold, too, in the long term, gold is money in most Western nations. Gold remains a preferred investment for many people when the local economy and the global recession.
Against inflation
Many people wrote about Bitcoin sucked into limited numbers of 21 million Bitcoins. If you're worried the government will cause inflationary your savings account, it is quite rare Bitcoin value.
But for the West, where most of the money circulating in the world, how many people worried about issues such as inflation remained low. Moreover, and more important, most people no longer keep their savings in another account, where their savings easily lost by inflation risks.
Bitcoin compared to real property and securities
For most Americans, their biggest asset is the house, can fight inflation, that house prices will rise along with the general price level. Assets in private pension funds (401 (k)) also provide similar protection capacity.
Riskier bonds, but did you have to get at the money out of dollar bonds and put into asset classes such as Bitcoin fluctuation risks, whereas mutual funds can buy shares? The mutual fund will invest in companies creating and selling products, the service, rather than a solution to a problem encryption abstract.
It is now, even after what? The concept of a gold standard is no government which could cause a currency inflation to solve a political problem. When inflation occurs, there should be something that can keep the value of the currency, if not the government will push the economy into recession monetary system. With Bitcoin, there is no government control it, so there is no government which could cause inflation it.
This makes many people will think Bitcoin really good: hide your money from the government.
Secrecy
Bitcoin really has advantages compared with gold if you try to bring money out of the country with the tight control the transfer of money abroad. Will easily hide one USB hard drive than a truck full of gold bullion, or even one foreign account with full money smuggling.
But there are also disadvantages Bitcoin true: A USB hard drive more easily stolen, or easily lose more than a truck full of gold bullion. Moreover, gold has actually worth using as jewelry or industrial applications. Mean value never drops to 0, while Bitcoin can. On the other hand, the value of Bitcoin is also more volatile than gold in a short time.
Conflicts with the government
Perhaps the biggest weakness is that if Bitcoin really becomes the way that the government can not control the economy and the citizenry, so the government will destroy it.
When putting this issue out, the fans Bitcoin assert that this can not happen. But in reality, special Bitcoin currency in cash hidden account, by blockchain a ledger of all transactions; if you can timeout 1 to 1 real account, you will know exactly what they are buying. Moreover, in 30 years, the authorities demonstrate that they have the ability to crush any threat to power control and taxation.
The tax haven once thought to be unable to be harmed, are increasingly experiencing pressure from rich governments. These countries make it difficult to transfer funds from developed countries.
Online gambling in the US was closed in the same way as the government does not allow the payment service transactions with online casinos. The government can do the same for Bitcoin, close all contact points with the real economy, where Bitcoin turned into cash.
Black market deals
Will the transaction takes place at the boundaries of the gray economy? Sure. But it will be marginal, similar things as opium illegal or black market transactions to be carried away and spend every sale. Whether you will pay 18,000 USD or more for 1 Bitcoin only good in business deals like this? "Transactions black market" is an interesting business model, but the model is not necessarily profitable.
The price of Bitcoin seems to be led by those who think that black market trading cannot occur. However, with the Government will only whispering control financial system, analysts on Bloomberg that believers are wrong Bitcoin.
"Why Bitcoin is good?" The answer given is Bitcoin experts not good enough compared to any such valuation on. There are many applications for digital money and blockchain. Unless it becomes a global currency or global payment system, there is no reason in the next 50 years we again are willing to pay thousands of dollars to buy 1 contract Bitcoin.

The Syndrome "Future dream" in the whirlwind bitcoin

I. Repeat the same mistake
The year 2017 has closed the frenetic about yet apparently bitcoin signs of hypothermia and still continue "making rain wind" on world financial markets.
However, the value of this virtual coins to over 1,000% growth in the past year to deep discount and then 50% just in the last few weeks have shown great uncertainty of a "casino".
This is a hard thing to explain, but if looking at the past is not unjustly that many economic experts predicted that the value of bitcoin will continue rising this year.
This led to the term Déjà vu (or see the dream the future ever happened in the past), is the description of the feeling you've seen before or experienced something before you know for sure that I've ever experienced. Or in other words, this is exactly the phenomenon of perceived "history repeating".
In contrast to the past, surely those who love the species tulips brightly colorful will not forget tulip mania (aka bubble tulips) occurred in the Netherlands in the 17th century when prices this icon of flower hikes that unusual to then collapse.
In Europe at that time, tulips symbolize status and power, is reserved for the nobility, and that is the reason that people rushed to buy tulip. When demand exceeds supply, traders have created a gamble, where they pay the price to be bought with this rare flower, with the belief that it will raise prices in the future.
The result is that in 1637 when the fever tulips culminated, some bulbs of tulips even sold for "heaven" many times more than the annual income of a craftsman skilled, it appears the "silver platter" is suddenly collapsed due to the major players decide to sell off.
Prices immediately fall flower bulbs upright only 1% of the value has caused traders to panic rinse stockpile. Consequently, there are wealthy merchants overnight downgraded almost a beggar still many people in the ranks of nobility saw his body destroyed furniture that can not save. This is considered a speculative bubble first recorded in history.
A crisis similar to tulips, in the period of 90 years, the global market continues to fall into crisis stock bubble dot-com (also known as the Y2K bubble). That day, new concepts of Windows operating systems and the Internet appear immediately develop rushing and pushing share prices of renowned technology companies such as Netscape's then-towering up.
Going along with the seething of stock index NASDAQ Technology (USA). Consequently, by 2000, due to "inflated" unduly by investors and the expectations of the market ridiculous "ball" began to explode. Peaked in early 2000 with more than 5,000 points, but only until the end of that year, the NASDAQ fell by 50%.

Even 30 months later, the index fell to 78% from the peak is set previously. Companies like Pets.com and Webvan completely removed from the map business, while Cisco's stock price plunged 86% and Qualcomm also bear heavy losses. This incident caused the dot-com market collapse, plus a number of events such as 11/9 service, making the US economy quickly plummeted.
II. Virtual money, the real damage
Unpredictable fluctuations led many people not out of concerns that once again history "bubbles breaking" will repeat for the market the coins of encryption.
The experts said that the cause of price rises in recent months bitcoin is mainly due to the psychology "of the East" by investors and the tightening of policies in some major economies, as well as positive views about bitcoin of some "he "the big banks on Wall Street, not based on the actual value of the coin.
In other words, the value of bitcoin is being "hyped" up and could collapse at any time.
Bitcoin bubbles, if collapse, will not cause too great influence.
The reason is that although the number of investors in bitcoin on a large, song most of 366.8 billion market value of bitcoin is owned by a small group that belongs to the super-rich, including "eat may" when investing in coins from early.
Thus, even in the worst case happened, these people already super rich that, also just "Subtract" rich go a bit.
However, that is just a pink script when we fail to factor in crowd psychology which created the "sublimation" of bitcoin.

An unexpected price drop can create line effects, causing the owners of virtual coins in bulk each race after fearing a rush off stronger in the future. And this action comes with the shortage of liquidity, will create a true nightmare.
The spread will occur throughout the system, the other virtual currencies like the ethereum, litecoin or monero will also inevitably implications.
That's not to mention the scenario when the government is Bitcoin "Nevertheless horn", the investors will go, Where? Currently, many countries do not accept Bitcoin as a transaction currency. A currency is determined when the unit is easy to calculate, taking reserves in value and as an intermediary for the exchange of goods.
In fact, Bitcoin cannot meet the standards of a currency, considering three factors. Currently, respectively officials in the financial circles of Thailand, Korea, India ... turn voiced assertion not supported trading virtual money and give warning of metamorphosis when using Bitcoin as fraud, money laundering.
In this regard, Eric Schiffer - CEO of the company stock Patriarch Equity, has warned investors that they should not trade off the savings of yourself into something that he called "threat finance the bloodiest of the 21st century ".

The companies who dug Bitcoin are shedding because of the sharp drop in virtual money

Strong reduction of the bitcoin has made the notion that digital money will become a haven for discounts from traditional financial markets lost value. Innes predict price fluctuations reduced bitcoin in short from 3,500-6,500 USD, with the possibility of reduced to 2,500 dollars in January.
The worst slump in the year 2018 of the virtual coins, especially the Bitcoin, has led many companies to dig bitcoin on the world.
The great crisis of digital money in 2018 are headed for the worst week ever.
Digital money lost nearly 700 billion USD in the worst week since the bubble burst bitcoin
Bitcoin reduced the level of 4,000 dollars and most of their friends also fell on Friday, extended the wave off of digital Money index Bloomberg Galaxy since 16/11 up 23%. That was the week the worst decrease since the digital money craze peaked in early January this year.

How to compare Bitcoin with other assets?
After last year's crisis price increase to overcome many of the infamous bubbles in history, digital money has lost 700 billion and yet there are positive signs. Many fear is causing waves off the year 2018, includes the soi's review of the operator, the debate in the community and the chaos of the trading floor, just making this week even more serious. Even after the majority of digital currency lost more than 70%, Stephen Innes of Oanda has yet found clear evidence about the market hit bottom.
"There are still many people in this game," according to Innes, head of the trading division of Asia Pacific at Oanda, the interview from Singapore. If the bitcoin "collapse, if we see the wave of discounts on 3,000 USD, it will become a monster. People will flee ".
Innes says that his predictions in short as 3,500 USD to $6,500, with likely dropped 2,500 USD in January.
Digital currencies decreased 7.6% on this largest Friday, before recovering the remaining 4.1% giảmxuống levels taken at the 16h43 in Hong Kong (now Vietnam 15h43), according to the general price of Bloomberg. $4,244 level, is the lowest level of the bitcoin since April 10/2017. Ethereum opponent, ripple and little coin all are reduced by at least 5%. The market value of all digital Coinmarketcap.com money to track down 138 billion, down from about 835 billion at its peak in January.
Characteristics of the biggest disaster are the individual investors put money into right now when prices peaked. NVIDIA-chip maker based in California has lost almost half the value since early October as demand for chips for digital money mining slumped and the result is the array of betting they cause frustration.
The economic impact of the fall digital money is still limited, partly because the majority of large banks and money funds held very little or not affected by virtual money. For most investors, the recent slump on the stock market back to more important: 700 billion decreases in the digital assets since January compared to 1,300 billion evaporated from the market value of the global stock in just weeks This time.
While some people are optimistic about the digital money argue that bitcoin and other digital currencies will become the refuge for discounts from traditional financial markets, this year's decline meant these words take reviews treatment. Gold, a traditional haven of the investors, increased again in recent weeks when digital cash discount.
"I don't think the digital currency is attractive in comparison with the role of the other property," Innes said. "The price of gold will increase considerably and reverse relations are starting to appear between the gold and the money".
The companies who dug Bitcoin are shedding because of the sharp drop in virtual money.
The market has undergone a virtual money in the rush lasts the year 2018, and reviews of the major virtual currencies, such as the Bitcoin has fallen to about 75-85% in comparison with previous record highs.
The extent of this decline has led the company to bankruptcy by bitcoin profits do not compensate enough. Bitcoin is digging works to create new encoding copper by solving the complex calculations, which requires enormous power. This means profits harness the bitcoin global virtual coins when prices slide this deep.
So far, the company suffered heavy losses as Giga Watts in America, when it was forced to apply for bankruptcy in last week after the airline cannot repay 7 million debt.
According to CoinDesk, the bankruptcy of the Giga Watt has written: "the company is losing the ability to pay and could not repay its debts when due. The company and the creditors will be guaranteed best by reorganizing companies according to article 11 of the Bankruptcy Code ". Giga Watt has estimated assets are less than $50,000, while the debt of about $.50 million.
A group of the House of money alternative encoding of China also said it had to stop due to encoding money diggers 20,000 decrease in profit.
The dig in the bitcoin time always needs a very large amount of power. Now in China, for a long time, investors dig bitcoin hunting the old hydroelectric plant to proceed with the acquisition, turn them into peach yard bitcoin.
Excavator bitcoin is being sold off as scrap in China. With the current low price of bitcoin, many operators have accepted virtual money the inactivation of the excavator and wait for the price increase again. And work off the old cell cost can be reduced.
A recent video circulating on the internet can see that has made the miners sell the bitcoin ASIC of them as "scrap".
The Bank's analysts Morgan Stanley said: "we have calculated and stated that the level of power consumption for the year 2018 Bitcoin Peach will be greater than the entire power supply for electric vehicles worldwide in the year 2025.
In Norway, the Government and the removal of price subsidies are provided for the miner's bitcoin. Aftenposten newspaper said from next year, the companies and individuals dig money coding will have to tax the normal power. When the subsidised lower, miners have to carry his higher taxes, get a lower net profit if not moved production out of nearby countries such as Sweden and Denmark.
Economists Alex de Vries, PwC, for each company that will use about 50% of the Bitcoin energy around the world. "Keep this momentum, with virtual money, will" kill "the planet," said Vries.
However, some analysts dismissed this warning, given that the user needs to exploit virtual money accounted for only about 0.1% of the total power consumption of the entire world. Furthermore, the technology improved, also help to increase the efficient use of energy.

Price Bitcoin is heading for the region declined, here are the reasons

According to the technical analysis recently, the next goal of price Bitcoin can be returned to the support 6000 USD, after the currency world No. 1 fell sudden lows least 3 weeks
Currencies electronic world No. 1 unexpected loss of $ 6.252 on the floor Bitfinex - the lowest level since the day 09.19 until now - and now only be traded at $ 6,300, down until 5% of its value over the past 24 hours.

The advantage of abortions cannot prevent 10-week moving average (10-week EMA) back on Monday, as expected, has created opportunities for the decline of BTC grandstand.
Not to mention, the sell-off in the last hour also marked an end to the period of almost 2 little changed last week. Nearly all of all technical analysis indicators have now settled on a downward trend. Besides, the decline of the stock market as causing more disadvantages for BTC, by this e-currency is still seen as a form of more risky assets.
Consequently, Bitcoins are at risk continue to be sold off about $ 6,000 because of the following reasons:
1. BTC breaching the key support
As seen in the chart above, Bitcoin has encountered indicator "Strip breakthrough Bollinger "yesterday and this event has also penetrated the support trend line is drawn between the lows on the day 06.24.2018 and 08.11.2018.
(* Bollinger Bands are technical indicators by John Bollinger built, used to measure the market volatility. This tool tells us whether the market is in a state of quiet or are volatile. when the market is quiet, bands will be narrowed and the vibrant market, bands will expand.)
This could cause "bears" deadlock because the trend line is an obstacle important for any sell-off trend in the first half of October 9.2018. Moreover, the trend line is now acting as a strong resistance against price speculators.
Therefore, the volatility of Bitcoin prices, as shown by the distance between the upper and lower Bollinger bands, respectively decreased by 15 and the minimum threshold of 21 months.
A stabilization period lasts usually be followed by another round of volatility. In the case of BTC, trending that is facing down and with the closed candle day below Bollinger, the next target to discount the possibility of the high would be $ 6,000, which was the trough of March 6.
2. All the indicators are against Bitcoin
indicator relative strength (RSI) of Bitcoin on graph 1 day penetrated the uptrend line and fell back below 50.00. However, the RSI is still quite far from oversold levels at 30.00, meaning that there are still many gaps to Bitcoin can be reduced to $ 6,000.
Meanwhile, the indicator "precarious" has dropped below 61.8, indicating that the downtrend is still extremely strong.
There is a more important indicator is the MACD has just recorded one top-down intersection of two moving averages.

3. Trading volume reached its highest level in more week trading volume on the floor
 Bitcoin Bitfinex rose to its highest level in five weeks on the day 10.12.2018. More importantly, the total volume traded on all exchanges has increased by 36% to cryptocurrency 5:18 billion - the highest level since 21.09.2018 under CoinMarketCap.
In fact, Bitcoin transaction volume has increased, thereby creating a great significance in reducing the price trend, because high transaction volume plummeted always be considered a negative indicator worrying.
4. World prices down, increase the price uprising
Large trading volume sharply trailed by world prices up BTC/USD 10%, in contrast to world prices down 7.4 increase on the floor Bitfinex.
The market breaks important support levels along with the messy situation of world prices up and down, deeper sale range is being expanded. So, it seems the direction of resistance levels are a big downside for the market is.
The slight recovery from the lowest level in three weeks to the night of 12.10.2018 may be related to excessive conditions seen on the relative strength index (RSI) in constant chart hour and 4 hours.
5. Long-term chart returns a negative perspective
Negative perspective appears due by the intersection between the two lines, and the 5 EMA 10, as is underpinned by the latest price spike today.
More serious, the average road 5, has also driven down first since September in 2014.
6. The stock market decline can create pressure on the market the Bitcoin
Owls lose of Bitcoin also took place just a day after the DOW industrial index (DJIA) of U.s. Securities also lose to 800 points. Even so, this is also not the first electronic coin world no. 1 followed the stock market.
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