Tuesday, February 13, 2018

Bitcoin is hanging on dangerous level

Bitcoin is hanging on dangerous level I am not a bitcoin traders/miners/investors but just invest in plain old equities. Bitcoin volatility may impact equities. I need to place an watchful eye on it's development.

Bitcoin is hanging at USD$8,524 level. It seems not able to penetrate 0.786 level.

I believe that Bitcoin has failed on what it was originally set out to do. Considering the amount of energy it consumes in mining, trading and even just maintaining the global blockchain ledger, I say cryptical currencies need to evolve so that it can scale up without causing the Earth to die by over electricity consumption.

The open source nature of Bitcoin allows forking to  unlimited alternative cryptocurrencies. The "limited supplies" may be true for Bitcoin but it's certainly not true for cryptocurrencies in general sense.

Based on these fundamental factors, I believe that bitcoin really has not much use for investment or even asset storage purpose for ordinary people like me. Frankly the greedy side of me really hopes that I have got some Bitcoin when it was at $0.10 level. However, I cannot but think that Bitcoin has got some fundamental issue and it's not a good solution for what it's set out to do. For this I think Bitcoin still has a long way down to perhaps sub-$1,000 level.