Bitcoin Crash 2/2 (Spanish Available)steemCreated with Sketch.

in bitcoin •  5 years ago 

If you haven't read the firsts part, the link is here. There also you'll find Spanish version.

Continuing the last article, we stop at Phase 2 of the emerging of an economic bubble. Son today we'll see the rest.

3 ''The "Every man for himself" period. Prices crash as everyone runs for the exit. This can happen a number of times, separated by brief periods of stability when everyone congratulates themselves on a lucky escape. But they are wrong. The ship is sinking.''

Already in January, affected by diverse factors like sanctions, among others, the Bitcoin finally crashed as many presumed, suffering a decline of 49% during January month and keeping the tendency for the rest of the year, arriving to a minimum of $3199, a bit lower than the price where began its historic rise in 2017.

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Source : tradingview.com

Once the bubble has pop, there isn’t a demand willing to purchase the good at the level of prices where it is, thus traders starts to leave massively by selling the cryptocurrency’s contracts for a price each time lower, therefore, when it haves all of that massive offer concentrated and a low level of demand, occurs these strong and fast declines that keep the tendency for a long time period until the prices stabilizes according to real value of the good.

Nevertheless, it’s worth to mentions some traders and cryptocurrencies experts think BTC bubble hasn’t come yet but, it’ll eventually do it as financial institutions starts to invest on cryptocurrencies market, and what we seen in 2018 was only a market correction, they argue that when the prices arrive to an estimated of 15 trillion of dollars, then, BTC would be in a market bubble.

On other hand, they also say, far from hurt Bitcoin, bear market of January benefits Bitcoin by removing to everyone was hoping make money fast while those who add value to such good stay investing.

Bitcoin Cash War

A Bitcoin wars? Yes. It may sound crazy but it really happened.

Although this didn’t influence the crash of January, it did so during the crash at the end of 2018 when the price fell from $5000 to $3000, its worst level all over the year as a result of the ‘’hash’’ war between Bitcoin Cash ABC (Adjustable Blocksize Cap) and Bitcoin Cash SV (Satoshi’s Vision) but, how it all started?

Its origins go back to 2017 when a group of developers abandoned Bitcoin and created its own cryptocurrency ‘’Bitcoin Cash’’ due to a dispute for different visions about the block sizes, this debate come from 2010 but it intensified in 2015. The main reason of those who were in favor of increasing block size (actually 1MB since 2013) was make the transactions cheaper and faster, moreover, such increase would mean an increase of CPU’s processing resources making the mining more centralized to a reduced group, which was the one of the main reasons of its rejections because of that went against decentralization principles of Bitcoin.

On other hand, BCH people argue that its vision of larger blocks is closer to what Satoshi Nakamoto outlined about making the peer-to-peer payments cheaper by allowing a major number of transactions to be processed on each block.

But, this new version of Bitcoin would suffer a new split again because of the emerging of new differences between Bitcoin Cash developers, BCH ABC on the one side supported by Roger Ver Bitcoin.com CEO and Jihan Wu from Bitmain.com, and BCH SV on the other side supported by Dr Craig Wright DeMorgan Ltd founder, being leaded to an ‘’hash wars’’ between both where Bitcoin Cash SV would tried to whatever was needed to kill its counterpart. Despite of the victory of BCH ABC, this war, in fact, was largely criticized by market and the cryptocurrencies community labeling it as unethical and loosing the trust from traders who, on other hand, were concerned about centralization of both BTC versions; having as a result the fall of the prices in November.

''his battle between ABC (Jihan Woo) vs. SV (Craig Wright), has no consensus from the public nor the DAU of Bitcoin Cash token holders and this makes it serious from the ethical point of view. It is centralized and monopolized power game, where blockchain is meant to become a public, decentralized trust mechanism. Price manipulation by power game is hurting digital wealth as well as its future value for technology development.
First of all, wasn’t blockchain more about sharability and shared economy? More and more I feel from this industry is that many things are manipulated, information asymmetry exists larger than the modern financial market, and moreover such incident really has impacted mistrust for many entities. No product or services that ignore right or customer satisfaction fails and this civil war really implies self-interest than public’s interest. Overall cryptocurrency transactions seem to be shorted and slowing down for now. My hopeful view is that the fundamental market has not been changed."
Michael Jeoung Trustverse CEO
Source

Today Bitcoins seems to be recovering from its fatal fall in 2018, its average price is located between $9000-$10000, and probably it recovers the level that it lost last year, but, which will be Bitcoin's future? It will revolutionize financial system? or it will perish face other crisis?

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Hola @johancuicas, la idea del uso de la etiqueta #spanish es para promover contenidos en español, digamos que el tema principal del post esté en ese idioma, esperamos y consideres la idea del comentario para próximas publicaciones.
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