Post by Admin
2018-11-07 16:16:44
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Bitconnect the difficulties faced virtual currency market in the first month of 2018

Apart from the ban on electronic money exchanges last year, the next target of the Chinese government is the domestic platform enables centralized trading without clearly defined differences between these platforms.



Chinese government continues to implement measures to ban money transaction digital, tight control over the online platform and mobile application for this transaction . 

Chinese management agency also targeted individuals and companies providing services for clearing, settlement and market making. Private transactions peer (P2P) small scale is not affected.
 
Bitcoin prices fell 1.2% to 13,580 USD mark in session 15/1 noon in London, according to Bloomberg.
 
Once a hotbed of digital money, people dig this coin China gradually fled.
The restrictive measures digital money Chinese government has great influence on Bitcoin and copper coin alternative in many months.
 
Along with that, more and more complaints from the world of pre-coding legislators, especially the risk of blowing price, money laundering, and tax evasion. Last week, a senior South Korean official ever hinted that would prohibit digital money transactions in the country.
 
Earlier last year, China is still the biggest Bitcoin transactions. It also served as the "home" of many companies dig the world's largest Bitcoin. Moneygrubber digital world once flocked to China by low power prices, cheap labor, and ancillary industries.
 
After the strict control rules of the government, many companies dig large Bitcoin as Bitman, BTC.Top and ViaBTC had fled from China to markets more easily do business as the USA, Canada, and Singapore.
 
January challenging market virtual currency 
 
Reduced market capitalization, more storms and collapsed to the floor price is Bitconnect the difficulties faced virtual currency market in the first month of 2018.
 
The market usually has virtual money difficult early years and 2018 is no exception. The first month of this year has seen not a few days "red floor" as well as many large fluctuations of money market algorithm.
 
1/1 to 26/1 from date, the total market capitalization of virtual currency fell by 65 billion dollars, of which there are deep cuts to nearly 180 billion dollars. From day to day 17/1 8/1, the market capitalization evaporates continuously making the virtual currency devaluation serious key.
 
During the day 17/1, the value of market capitalization to $ 428 billion, the January lows. This is the first time the entire market capitalization of virtual money returned this level since early January 11/2017.
 
Thrust recovery was not strong enough market pricing the largest virtual currency has yet to return to pre-storm value.
 
In the center of the storm devaluation, each Bitcoin value was down 25% in 8 days, from $ 16,500 USD per unit to 12 500 USD.
 
Similarly, carpeting Ripple also depreciated from 3.34 USD per unit to 1.40 USD after 8 days continuous floor red. Capitalization of this virtual currency lost 74 billion dollars led to the price per unit fell 59% in value.
 
The main cause for 8 days "red floor" of the market virtual currency between January supposedly regulations increasingly tightened with trading virtual currency in South Korea, one of the money market algorithm busiest world.
 
Besides, the case floor Bitconnect, a floor virtual money stick allegations that multi-level variable minister, has caused significant impact on the investment community virtual currency shaped in the form of Lending, including investors Vietnam. Many Vietnam "play Bitconnect" lost hundreds of millions, even billions because the floor collapsed.
 
However, the difficulties of the market in January does not surprise analysts for 3 years. Virtual currency market will start the new year in a very difficult, even lost large amounts of market capitalization.
 
Compare prices for the time of day 26/1 1/1 days, the price per Bitcoin fell from 13,800 USD per unit to 11 200 USD per unit, down 19%. Ripple also discount per unit from 2.27 USD to 1.21 USD, down 47%.
 
Price per unit increased from 750 USD Ethereum to 1,060 USD, one of the rare coin prices virtual good.
 
One leader said Bitpay floor storms the last price is due to the overreaction of investors, before the negative rumors.
 
Canada is the 'mecca' of miners new Bitcoin 


 
 
While China is gradually banning Bitcoin Canada has been attracting companies to exploit digital money invested in this country.
 
According to Reuters, Bitmain - Bitcoin mining company is the world's largest office consider moving operations to Canada. At the same time, Hydro Quebec energy company (Canada) talks with about 30 operators Bitcoin about migration plans.
 
Beijing banned peach why Bitcoin? 
 
Qualifications Bitcoin system needs a lot of computer processing of the coding problems. The heat of the electronic currency This makes the need to use computers even dig Bitcoin supercomputer hikes. Digital money is growing, the complex process makes training difficult, time-consuming and energy.
 
Davia Vicent, business manager of the power plant Hydro Quebec, told CoinDesk in an interview recently that the local authorities are in a campaign to attract technology companies to local, and that attracts many peach Bitcoin.
 
"The big companies have conducted training Bitcoin headquarters relocation activity around the world in order to avoid similar policy restrictions. They know there are too many risks when operating in China and started moving the headquarters to other countries ", Arthur Hayes, executive director of currency trading platform digital BitMEX in Hong Kong, said.


According to the Financial Times, digging power computers used in last year's Bitcoin higher electricity consumption of nearly 160 countries. Therefore, China has conducted Bitcoin mining ban because of concerns over the excessive energy consumption regulations and financial risks that digital money brings.
 

 
Will Canada be the "mecca" new Bitcoin? 
 
"It's surprising that developed countries gradually realized Technology is an infrastructure blockchain economic digital" Joseph Bradley, an analyst at Apex Token Fund said. In addition, Business Insider also said Kazakhstan, Bhutan, Venezuela, and Chile are attractive move peach Bitcoin companies open offices here.
 
"The policy as well as the conditions of the Western countries to unlock the door to reach the enormous value of digital currency on a global scale. And countries realize this opportunity deserves more sustainable benefits. Dao also brings Bitcoin peer values for oil pipelines, "he Keshian adds.
 
The setup process requires training system Bitcoin millions of dollars to complete. Thus, investors dug digital currency to stability policy as well as low energy prices for payback and profit. And the countries mentioned above will become an attractive destination for international training matches the current Bitcoin.
 
 
West into a new destination
 
"We saw many investors are turning to Canada. The government-friendly business Bitcoin and energy prices here are relatively cheap," Chris Keshian, CEO of hedge fund money digital Apex token in San Francisco, answered Business Insider.
 
They see the prospects of tax revenue, boost local economies and solution uses power supplies abundant today. Quebec is one where energy production large hydro and the cheapest in the world. the climate is cold here plummeted computer cooling costs and political stability of Canada is attracting many investors dig more Bitcoin.
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