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Bitcoin early adopters losing faith in BTC? Suggests analysis by Chime

Laira Rebecca

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Bitcoin early adopters losing faith in BTC? Suggests analysis by Chime
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According to the latest report by Fortune, Bitcoin [BTC] has seen huge withdrawals than deposits in the month of April on Coinbase, the largest cryptocurrency exchange platform based in the U.S. The report is based on the recent analysis conducted on 500,000 users of Coinbase by Chime, a bank based in San Fransico.

Bitcoin [BTC] has seen a huge downfall since its December hike and the current market situation suggests that the Bitcoin community is slowly giving up.

Bitcoin, the cryptocurrency which led to the emergence of all the other digital assets in the market has been witnessing a huge downfall ever since it hit $20000 in the month of December. Ever since its fall, Bitcoin investors started to withdraw more than invest. The coin has seen a dip of more than 70% in the past 6 months.

The analysis conducted by Chime, states that the investors withdrew $1.37 for each dollar deposited on the platform in the month of April and $1.10 for each dollar deposited in the month of May. The analysis also suggests that some of the early adopters of Bitcoin have sold around $15 billion worth BTC, in the first four months of this year.

Chris Britt, the CEO of Chime says:

“Its human nature that investors often buy at the highest prices and sell at the lowest prices. While we can’t predict the value of Bitcoin in the future, I suspect we may look back at the current price a few years from now and see that these lower prices were a great time to buy.”

Meesterwes, a Redditor says:

“Bitcoin needs users not investors”

Disconnect04, another Redditor says:

“This is an absolutely incredible statistic . . . this thing has gone down 70% from the peak in December, and that’s the first month they’ve seen outgoing exceed incoming cash! The amount of bagholders generated in the last six months must be staggering. When this market capitulates the crash is going to be insane”

HopeFox, says:

“I’m surprised Coinbase didn’t have “technical problems” when so many people tried to withdraw.”

Crypto_To_The_Core, says:

“OK, this time, surely, finally …. This is GOOD for Bitcoin.”

According to CoinMarketCap, at press time, Bitcoin [BTC] was trading at $6396 with a market cap of $109 billion and has seen a rise of more than 8% in the past 24 hours with a dominance of 42.6% in the market.



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Laira is a full-time writer at AMBCrypto. She is a Computer Science graduate and she has about 1-year experience in writing. Her enthusiasm and keen interest in developing her knowledge about blockchain and cryptocurrency led her to be a part of AMBCrypto. She currently does not hold any value in cryptocurrency or its projects.

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1 Comment

1 Comment

  1. Brad

    July 1, 2018 at 12:16 AM

    Im with HopeFox: The first thing I thought on reading that Coinbase had lost customers was that experienced customers had gone to another exchange; not that they had left crypto. I dumped Coinbase because seemingly every time the price rose or fell in the customer’s favour, Coinbase seemingly had “technical issues” which prevented trading, as HopeFox suggested. This happened all the time on Coinbase, but I’ve not had it happen elsewhere.

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Bitcoin

Bitcoin’s divisibility and transportability make it much more flexible than digital gold

Priya

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Bitcoin's divisibility and transportability make it much more flexible than digital gold
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Andreas Antonopoulos, the author of Mastering Bitcoin and a Bitcoin proponent, spoke about Bitcoin as a digital currency and whether it would be limited to being just that, in his latest Q&A session on Youtube.

The author was asked about the possibility of Bitcoin becoming the world’s reserve currency, a digital gold and whether other cryptocurrencies would be used as a day-to-day currency. To which, he said:

“I don’t know. I think it would surprise me, actually, if Bitcoin could only fit into the niche of ‘digital gold.’ Bitcoin has characteristics of divisibility and transportability that make it… much more flexible than digital gold.”

Antonopoulos stated that gold is not a good medium of exchanges, because of the difficulty related to verifying whether it is real. He also stated that the store of value is “heavy to carry”, adding that the more one tries to make it fungible and divides it into smaller pieces, the harder it gets to verify its authenticity. According to him, verifying gold in larger amounts, which are stamped by reputable third parties, is easier.

“Then the cost of storing and securing gold is so high that it is better done in a custodial manner, where you put it in a vault and have professionals guarding it. You [are left] with a little paper certificate [of ownership], which have other problems like hypothecation. [All of this] makes it difficult to use [gold] directly as a medium of exchange.”

This was followed by the author remarking that these problems are not prevalent in Bitcoin, even though there is “greater complexity” when it comes to securing the cryptocurrency. He went on to say that this would cause some pressure towards third-party custodians, however, if that pressure is going to be lesser in comparison to the current system, it would still be a “more decentralized future”.

“The ability to transport bitcoin very quickly, in very small amounts [or very large amounts], [including] with second-layer networks that are even faster [and smaller] at the level of microtransactions”

Moreover, the Bitcoin proponent thinks that Bitcoin could be a “very effective” medium of exchange and store of value, adding that the volatility would decrease through use and volume, wherein the currency would not be witnessing a major price fluctuation making it “less speculative in nature”.

“That doesn’t mean there won’t be other coins which [are used] for everyday currency. I think there will be [others]. I don’t think Bitcoin will be just digital gold. It may become a world reserve currency, but I think the concept of a unitary world reserve currency [would] no longer be relevant.”

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Altcoins

Bitcoin [BTC/USD] Technical Analysis: Cryptocurrency fails to climb on the bull after price stays locked down

Akash Anand

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Bitcoin [BTC/USD] Technical Analysis: Cryptocurrency fails to climb the bull after price stay locked down
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The cryptocurrency market’s bearish woes do not seem to have waned with several popular coins seeing a continuous price downturn. Bitcoin [BTC], XRP, and Ethereum [ETH] have only enjoyed sporadic bullish spikes with a definite control being exerted by the bear.

1-hour

The one-hour BTC chart shows the gradual drop in prices. The support has been holding at $3214.17 while the resistance is maintained at $4160.21. The recent downtrend took the prices down from $3558.58 to $3367.97.

The Relative Strength Index shows a slight spike towards the overbought zone. This means that the buying pressure is increasing slightly more than the selling pressure.

The Bollinger band shows a clear divergence with the upper band and the lower band indicating an imminent sideways price movement.

The Parabolic SAR has been predominantly bearish with the markers staying above the markers. At the time, the SAR indicators were below the price candles which is a bullish sign.

1-day

The one-day chart for Bitcoin does not paint a better picture for the cryptocurrency with no uptrends in sight. The long-term support has been holding at3346.6 while the recent downtrend saw the price fall from $6262.97 to $3408.

The MACD indicator shows the MACD line and the signal line moving as a conjoined pair. Other than the bearish dip, the MACD histogram has been undergoing a lull.

The Chaikin Money Flow indicator is just below the zero line, which is a sign of the money flowing out of the market being more than the money coming into the market.

Conclusion

The above-mentioned indicators all point to an extended bear run with the prices still being clamped below the $4000 mark. With the year coming to a close, the predicted bull run does not seem to be occurring anytime soon.

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