Market cap of Bitcoin is currently hovering around $180 billion mark which is 2.1% of total market cap of Gold ( $8.3 trillion )
According to many analysts, Bitcoin is digital gold for new generation as they are looking forward to Bitcoin as a commodity and a replacement of Gold, but if we go with numbers, Bitcoin is actually no way near to the market capitalization of total gold in the world, according to an estimate, there is $8.3 trillion worth of gold in the world whereas according to current market cap and price there is only $180 billion worth of bitcoins in the world making it 2.1% of total value of gold in the world.
Gold is still the safe heaven
Gold is still the safe heaven for major countries and many countries are holding gold as a safe heaven asset for any economic crash or instability, making it the most valuable commodity in the world, if we are talking about bitcoin as digital gold or replacement for gold then potential of bitcoin is massive because if investors started pouring their money in bitcoin just like they did for gold then bitcoin would be a precious commodity with massive price tag.
If Bitcoin captures market cap of Gold
If bitcoin some day equals market cap of gold then one bitcoin would be worth around $500000
What is stopping Bitcoin to achieve that?
Acceptability, there is no doubt about the fact that Bitcoin is growing its acceptability by the time and many retailers and institutions around the world are now accepting Bitcoin, but its nit easy to use bitcoin in daily life, you just can’t go to a hotel and but food with bitcoin or you just can’t go to auto showroom and buy a new car by paying in Bitcoins, you have to convert Bitcoins in Fiat currency and then buy relevant things, but Imagine if you could buy anything through Bitcoins like you do with Fiat currency what would be the worth of Bitcoin, the answer is it could be worth hundred of thousands of dollars.
Bitcoin is the next super power for sure
Due to its nature of faster and cheaper transactions, Bitcoin is grabbing attention of many individuals from International Financial markets, recent announcement of CME is a prime example of that, future is looking great for bitcoin and there is no doubt about that fact that if it reaches market cap of Gold, it can reach to $500000 mark
Take a Crypto Pill
Crypto market is crashing, we all know that, panic sellers are taking over the market with massive sell-off. You can’t control that, just calm down and take a Crypto Pill to make things easy.
Crypto Pill is the term being used by industry leaders to make things calm down from recent fiasco, yesterday a leaked news from CFTC about Bitfinex and Tether made things even more difficult for crypto traders, short sellers went all into the market with massive short bets, and they won, Bitcoin price slipped below $10000 level to as low as $9500, but later on recovered to $10K , but selling pressure is still there.
First South Korea and now US
First it was South Korea, the country with massive trading volumes in crypto market, they announced to ban anonymous crypto trading and ban took place effective from 30th Jan 2018, then a sudden news came from US market when Bloomberg broke the news that US financial regulatory authority CFTC investigating Tether and Bitfinex, but later on it was confirmed that news was from December last year, which made market calm down a little bit after all that tension and hype about US crackdown on crypto currencies.
HODLers will take over market soon
Despite of all this fiasco, Hodlers are still holding their Crypto currencies, they are not giving up and they holding for their dear life, it is very much possible that they take over this market in near future, making another uptrend in coming months.
Venezuela is the cheapest country to mine Bitcoin
Cost of mining one Bitcoin in Venezuela is just $531
Most expensive country to mine Bitcoin is South Korea, where cost of mining one bitcoin is $26,170
After recent crackdown by Chinese Government on Bitcoin miners, most talked about topic in bitcoin community is that which country would Chinese Bitcoin miners chose to shift, as many research firms were working to find the best possible option for the miners, one of the best option is Venezuela, where cost of mining one bitcoin is the cheapest, just $531, as compared to China where cost of mining one bitcoin $3172.
Others with lower costs are Bangladesh, Belarus, Paraguay, Serbia and Trinidad & Tobago. The most expensive is South Korea at $26,170 per coin. The U.S. cost is $4,675.
Calculations for the amount of energy consumed were based on the average usage of three popular types of mining equipment: the AntMiner S7, the AntMiner S9 and the Avalon.
Bitcoin mining consumes a lot of energy and according to one estimate, Bitcoin mining currently consuming energy which is more than 159 countries, including countries like Ireland
Crypto trading volumes are dropping
Volumes in crypto market are dropping, indicating an alarming situation. Crypto market started this year on a good note but later on crashed to low levels, apart from Ethereum, all other major crypto currencies are down for 2018, but one of the most alarming situations in this matter is that trading volumes on different exchanges are dropping to lowest levels in recent months.
For example, on Bitfinex current trading volume of Bitcoin is at around 25000 which at one point of time was as high as 160000 , which means this volume is not even 20% of its peak volume. Similarly in the case of Ripple, current trading volume is 8 Million which at one point of time was 50 million, so there is an alarming situation in that regards because not only price is dropping but crypto trading volume is also dropping dramatically.
Lack of interest?
One of the key questions that analysts are asking these days is that, is it lack of interest from investors that volumes are so low? may be they have found new investment opportunity in the form of S&P 500 and Gold. Most of the analyst think that this low activity is due to the reason that market speculators are currently out of the market and in wait and watch situation to make an entry point.
Calm before the storm?
Such low volumes and price movement in a tight range suggest that this is the calm before the storm, many regulatory authorities around the world are trying to stop crypto trading by either putting complete ban or by introducing tight laws, so speculators and institutional investors are just waiting for a clear picture so that they can make their bet on it, but one thing is for sure that sooner or later market is due for heavy movement in either direction, so day traders need to watch out.
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