The present year is all about digitalizing the basic needs of every individual. The concept of the virtual world improves transparency and reduces manual exercises. Bitcoin or cryptocurrency, in simple terms, is the online version of cash. The blockchains store the transaction details of these Bitcoins to maintain transparency.
The details of the transactions remain in history, but the user’s id is entirely anonymous. The value of these virtual cash faces ups and downs depending upon the market scenarios. The year 2020 has come up with so many survival and financial challenges all around the globe. According to the investors, Bitcoin can serve as a safe option for storing the money in this crisis scenario. Individuals can store their cryptocurrency in a cold wallet and return to it when it seems safe.
BTC hash rate at an all-time high in July
The hash rate measures the processing power of the networking of Bitcoin. This platform comes with intensive mathematical operations to maintain security status. The month of July is experiencing continuous growth in the hash rate of Bitcoin and the present week reached an average of 123.4 EH/s (exahash per second). This measure is of July 6 and considered to be an all-time high. The Glassnode Network Index (GNI) is in charge of the calculation of the networking of Bitcoin. The strength of the fundamentals of Bitcoin depends upon the health of the network, liquidity, and sentiments. July witnessed a drop of 6 points in liquidity, with a gain of 3 and 6 points on network health and sentiment, respectively.
The possibility of a sharp breakout
Every drop in this virtual economic platform comes with a sharp and steep expansion. A strong breakout is always the result of the long squeeze. The traders should be careful while dealing with the situation, as the first breakout in most of the cases is a fake-out. The price breakout quickly changes its path from the first breakout in the opposite direction within a short span. The bulls and the bears of the charts are still maintaining a midpoint situation; therefore, giving no hints away. The sharp breakout will symbolize the bulls overpowering on the bears in the charts.
The current crisis and fed printing money increase inflation rates
The pandemic is killing many jobs and diminishing the power of the business houses. Many companies all around the globe joined in bankruptcy protection. Most of the economists fear the chances of deflation, the turn-table situation of inflation. There is a sharp decline in the demand and supply ratio of the business world. Reduction in jobs weakens the financial power of the individuals. Therefore, this crisis fades the need for fancy or luxury goods and services.
The year 2017 was a miracle to the early adopters of Bitcoin, as that year turned them to millionaires. The crash of the Coronavirus is turning to a positive sign for the Bitcoin investors. The year 2020 has already witnessed a 5% growth in the virtual wallet status. The rapidly uncertain and evolving situation is a tricky challenge for every individual financially. Halving Bitcoin per block of miners is more or less constant in every four years. The founder of Quantum Economics Mati Greenspan believes Bitcoin will outperform in 2020 amongst all uncertainties. If you want to invest or buy Bitcoin, you must get an idea about Bitcoin future prices.
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