Amidst the major downhill movement of the value of the highly anticipated Bitcoin in the nascent market; on 25th November 2018, Sunday, Bitcoin’s price rise was a source of hope and relief for many investors and the crypto market overall. Although the rise is lagging way behind (80 percent) the impressive value that Bitcoin and other digital currencies stared off in December 2017- $20,000. It is a great volatile time going on for the crypto landscape.
On 25th November 2018, Sunday, the Bitcoin price was seeing a dreaded low of $3,447.58, but later that day it rose to pay relief to its panicking investors when it showed a hike of 5.54 percent reaching the price of $3,982.80 shortly after 7 a.m. ET.
Other cryptocurrencies on the digital currency landscape such as Ether and XRP, (the second and the third popular digital currencies respectively) are showing a 90 percent dip since their recorded highs in 2017.
The downhill turmoil didn’t leave the Bitcoin Futures untouched. On 26th November 2018, Monday, Bitcoin Futures saw the lowest since December 2017. The latest dip recorded was of $3,670 for CBOE Bitcoin Futures. The Bitcoin contracts were not spared either. It saw the new low of $3,685 on CME.
The great promising start of the Blockchain currency such as Bitcoin, Ether, XRP at the whopping $20,000 in December 2017 churned the market in a very positive way. It leads to the optimistic creation of Bitcoin cash with intent to create more business. But all of it had an equally devastating effect when the digital currency’s market crashed down below $6,000 later in November 2018.
The newness of Bitcoin and other cryptocurrencies is both a promise and a recipe for disaster if not understood well and if it rushed due to the desperateness of the high demands of the investors, instead of understanding the very fiber of this Blockchain invention. The volatility is a direct reflection of lack of the ability to properly scale the cryptocurrency so that it can be treated with the apt volume of trading. The mathematical algorithm of Blockchain will naturally go slow in the instance of high demand because of its very nature of several mathematical problems getting solved in one go. Therefore, it gives out slower transaction time and more time costs more fees.
The rise in regulatory scrutiny and the dipping hash rate of Bitcoin- are two other major concerns of Bitcoin Miners. It has challenged the rate at which the Bitcoin Miner can figure out the complex mathematical problems in order to compute a transaction to the Blockchain network.
Due to the volatility of the cryptocurrency prices the crypto mining business is seeing a lot of drastic dumping of the huger servers. As per social media posts, the crypto mining price fall has especially hit the Cryptocurrency miners in China.