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Will Coronavirus impact Bitcoin halving & future?

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coronavirus-bitcoin

What to expect in this article?

  • How does Coronavirus impact Bitcoin’s price action?
  • What impact does the virus have on the halving?
  • Vulnerabilities of bitcoin exposed by coronavirus
  • What happens if this panic goes on longer?

First things first, we wish everyone safety and those impacted a speedy recovery.  We want crypto to thrive in a happy and healthy world, not in a post-apocalyptic doomed future.

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This article is written as an answer to the question “Will coronavirus impact bitcoin during halving or in future?” purely as an conversational point of view, without undermining the devastation that virus has been leaving behind its trail.

How does Coronavirus impact bitcoin’s price in general?

coronavirus crypto marketThe most impacted coronavirus countries include China and South Korea. China holds about 65% of mining power behind bitcoin’s network. South Korea represents one of the most pro-bitcoin/crypto countries in the world.  In fact, South Koreans rallied the market in 2017-18 to new highs.  

With two most important crypto nations being badgered by this virus, bitcoin is naturally experiencing the impact of the virus.

In case of emergency – people flock to safer options

It is our human nature to flock to safety in case of an emergency.  For China and South Korea, this virus represents such safety. What do people need the most during times of crisis?  Food, water, medical supplies and essentials; Most places have not come to accept bitcoin, that means, people will cash their crypto to fiat to be able to buy essentials to keep the families safe.  Any sane person would prioritize well-being and family safety over long-term crypto prices.

Bitcoin as safe-haven, yes, but not there yet

Bitcoin is viewed as digital gold.  Just like gold, in case of emergency, people do not trade in gold, they encash their gold stacks for fiat to afford things that are most needed to survive.  Same thing goes true for Bitcoin. While it is still regarded as safe-haven, we would imagine that people in China, South Korea, etc., are liquidating their crypto holdings to deal with this virus emergency right now and they may not be buying crypto just yet.  This has a direct correlation to price movement in bitcoin and crypto.

It is just a matter of time when cryptos become more accessible

Number of places that accept bitcoin and crypto are growing each day, however, they are not at a mass accessible.  You cannot go to CVS or Kroger today to buy supplies using crypto. Because of this inconvenience, people will always lean toward fiat in times of panic.  Amazon has run out of face masks in the US and those who do have the supply are charging massive premium. And, at the time of this shortage, the US had literally no reported coronavirus cases. 

In our opinion, this coronavirus outbreak will continue to beat Bitcoin prices down because of: fiat familiarity and accessibility, especially during times of emergency.

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Experts believe Bitcoin could rally higher in the face of virus

bitcoin under coronavirusWhile the experts believed that the virus would have a positive impact on bitcoin prices, our opinion is quite the opposite. As discussed above, Bitcoin and cryptos are not accessible by the general public and you cannot easily exchange crypto for essentials, this lack of inaccessibility at this time of bitcoin’s evolution will work against it from a price point of view.

In a distant future when bitcoin and cryptos are accepted as medium of exchange on a mass scale – we would see resilience in bitcoin’s stability. 

Will Coronavirus impact Bitcoin’s halving?

Majority of the miners are in China.  The mining farms have not been impacted just yet by the coronavirus but if the outbreak evolves into a pandemic then the quarantine can be extended even more and that could impact every business in China, including bitcoin farms. 

Halving needs newer mining equipment

Once the halving takes place, the existing equipment could be inefficient in mining. Mining farms replace the old equipment to meet the new algorithm challenges. If quarantine continues the manufacturing of new machinery will be limited, thus limiting the mining farms ability to keep up with the demand.

We might even see halving date pushed a bit further

Binance reported that bitcoin halving could happen 3 weeks earlier than scheduled due to an increase in hash power.  Well, if the virus panic continues and China continues to take the beating, then, it is a real possibility that halving might get delayed a bit due to stagnated or reduced hash power. 

If the virus is not contained sooner, we might see a continued price correction of bitcoin and possible $6500 range, in our opinion. 

What happens if this panic goes on longer?

Needless to say, if the panic continues for longer then all of the financial markets will take a beating and that includes bitcoin.  We might even see 2008 level market slump if the panic intensifies or is upgraded to a pandemic. While we expect (hope) that an announcement of ‘containment’ and eventual cure/vaccine will be in news soon, we need to see if that will be really ‘soon enough’.  If such an announcement doesn’t come about soon enough, we might see a continued beating in the stock market which in turn impacts the job market which in turn impacts spending. Impact of such a spiral might linger long after Coronavirus has been contained.

Has the virus exposed vulnerabilities of bitcoin?

Bitcoin doesn’t need a middlemen so you will have access to your funds without worrying about ‘some bank’ shutting its doors down during an emergency.  However, you cannot spend your bitcoin on essentials because the market is not there yet in its adoption. In times of panic, people flock to the familiar options – bitcoin has not captured that ‘familiarity status’ yet.  Bitcoin is only safe and operational as long as it continues to enjoy strong mining support – what happens if all the farms in China, even temporarily, shut down? This impacts broader crypto space as well and might expose the networks to 51% attack.

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Rebound is inevitable once the virus is contained

Once the virus is contained or the hope that the virus is close to being contained emerges, markets will rebound.  Stock market and bitcoin will both rebound, bitcoin might see a sharper uptick because of people trying to buy back into bitcoin post-panic.  

We are hoping that the cure is found soon.

Thank you for reading and sharing this article. We appreciate you.

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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Crypto Roundup: All Your YouTube Influencers in One Place

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Crypto Roundup

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place.    

Worried about missing updates from your favorite YouTube crypto influencers?  

Welcome to the Crypto Roundup.  

On this page, we will post a quick summary of the videos from some of the most popular YouTube crypto influencers.

Ivan on Tech  Altcoin Daily

Crypto Zombie Box Mining

Ellio Trades Lark Davis

Data Dash Bitboy Crypto

MMCrypto Chico Crypto

Altcoin Daily

Video title: Bitcoin Will Be OVER $20,000 By Christmas 2020! BIGGEST WEALTH SHIFT OF OUR LIFETIME! Cryptocurrency

Date: 19-Nov-20

  • World’s biggest wealth shift of our lifetime is happening right now and no mainstream media is talking about it, except CNBC.

  • Preston Pysh predicted on August 26th that: “Bitcoin should be reaching its all time high by Christmas.”

  • If you are looking to buy a dip, there may not be one.
  • Ricardo Salinas Pliego, a mexican billionaire, has just revealed that 10% of his liquid assets are into bitcoin.

Lark Davis

Video Title: STOCKS HIT NEW HIGHS! WILL COVID VACCINES LEAD TO MEGA PUMP IN 2021? [Are You Ready?]

Date: 19-Nov-2020

  • Stock markets and bitcoin pumps higher on the news of the second successful covid vaccine.
  • There could be more chances for the new stimulus. Means more inflation, more debt and simultaneously pumps stocks, gold and bitcoin.

Crypto Zombie

Video Title: BITCOIN $18.5k TOP!!?! DON’T BE FOOLED!! HODL FOMO BEGINS!!! $TRILLIONS FLOOD!!

Date: 18-Nov-2020

  • Overall sentiment of Bitcoin has changed drastically from ICO craze in 2017 to a time where people are FOMOing to own more bitcoin.

Ivan on tech 

Video Title: BIG WARNING TO ALL HODLERS!!!!!!!!! DO NOT GET REKT!!! BITCOIN $18,500 REJECTED – NOW WHAT?

Date: 18-Nov-2020

  • Ivan expects bitcoin to shoot past $20K resistance before end of this year, giving it 85% probability

Chico Crypto

Video Title: World’s Most Powerful Turn BULLISH on BITCOIN

Date: 19-Nov-2020

  • All those who hold big bags of Bitcoin will come out of the shadows to talk up the Bitcoin rally, a $20K bitcoin could be on the cards before the end of this year
  • Ethereum mining could act as a big catalyst for Ethereum’s price
  • Big companies like google could play a bigger role in mass adoption of crypto

Let the FOMO begin…

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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Lessons from the Veteran HODLERS to the Newbies!

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Lessons in Crypto

For all those who entered the crypto market after the 2017 bull run – here are few lessons from the HODLERS from the last bull run(s).

This is our attempt at making all you newbies aware of the mistakes veteran cryptoers did.

Let’s get started…

Don’t FOMO in to all the hype

FomoIt’s hard not to FOMO in crypto.  The trick is to make sure you don’t lose your shirt in crazy bets.  Always limit your bets to what you are comfortable losing.

The common ways you can become victim of FOMO are:

  • Following your favorite YouTuber without actually doing your own research on the project.
  • Investing into projects at the top.
  • Believing in promises of 100x or 1000x without any substance behind those claims.

HODLing far too long

Remember why you are into crypto – to make the money.

Never fall in love with your crypto, and HODL the tokens even when they are 10x and more.

Have a strategy to take your capital out before you become a HODLer.  

If you believe the project really has what it takes to go beyond 100x and more, just sell in instalments so as to not miss the ride.

One of the best ways to HODL is to take your capital in full and profit in tranches.

This rekt story will give you a right perspective of what it looks like, it’s one of many:

Don’t put all your eggs in one basket

Never go all in on one project. No matter how strong the project may look, even the projects with strong fundamentals don’t do well sometimes. 

And, you will be kicking yourself watching other projects go up and your portfolio just doesn’t seem to make a move.

And don’t over do it and have a portfolio with over 100 projects either. It is very difficult not to have invested in more than 15 projects but anything less than 20 is a good way to go, in our opinion. 

Put aside the share of Profits for Taxes.

One way you can get a good night’s sleep is by paying taxes. 

Always keep a habit of putting aside a % of your profits in USDT or other stable coins, as a reserve to take advantage of market volatility and also to meet your tax obligations. 

Exchanges are more evil during bull run

Foreign ExchangesDon’t trust exchanges. Yes we already know that, but they play more games during bullrun, some intentional and some technical. 

Many exchanges tend to go under maintenance when the prices shoot up too high too soon (Coinbase?), and you can’t sell. 

And the shady exchanges scam out before you know.

Regulators seem interested when the market cap of these projects goes through the roof, which then adds FUD around the project crashing the prices.  

Exchange may freeze funds pending investigations when such issues arise.

Take for example OKEx. Users are unable to withdraw their assets from the exchange for almost a month now, not certain if they ever will, and all that started with the legal dispute.

Never fall for Arbitrage gains

Arbitrage is when you buy in one exchange at a lower rate and sell on the other for a higher rate to take some profits. 

Some shady exchanges show a lot higher prices than the other genuine exchanges and when you deposit your assets to sell at those prices there won’t be actual volume to execute the trade. You may be stuck with either a high fee for withdrawal or other funky rules to take your own money out. 

Remember, there is no free Giveaway

Free CryptoScammers rise with the rising market.  

When the crypto market buzzes with all time highs – scammers cash in big time on newbies.

The most lucrative scam in crypto is ‘Free Giveaway’. Whether it be through YouYube ads or discussion groups and wherever they can get your attention.  Read this article on various sophisticated scams that are being deployed.

We hope these lessons help you through your trades and crypto life.  Stay safe and always DYOR.

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

 

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Crypto Roundup: All Your YouTube Influencers in One Place

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on

crypto news

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place.    

Worried about missing updates from your favorite YouTube crypto influencers?  

Welcome to the Crypto Roundup.  

On this page, we will post a quick summary of the videos from some of the most popular YouTube crypto influencers.

Ivan on Tech  Altcoin Daily

Crypto Zombie Box Mining

Ellio Trades Lark Davis

Data Dash Bitboy Crypto

MMCrypto Chico Crypto

Altcoin Daily

Video title: The United States Just Brought Bitcoin into the National Conversation!! | Cryptocurrency in 2021

Date: 16-Nov-20

  • Former National Treasurer and the new US Senator Elected, Cynthia Lummis, said Bitcoin fits the bill as a good store of value as it is finite and limited, unlike the inflationary fiat currency.

  • Grayscale adds over 7000 more bitcoin in just the last 24 hours.
  • Just over 16% ETH staked for ETH 2.0 launch on Dec 2 2020.
  • Bitcoin Cash hard fork takes place tomorrow.

Crypto Zombie

Video Title: WARNING!!! BITCOIN 2017 BEAR FRACTAL RETURNS!!! BTC WORST CASE SCENARIO…

Date: 14-Nov-2020

  • Institutional money starts flowing into bitcoin.

  • Paypal goes live with its crypto trading platform for eligible customers. They have also raised the buying limits from the initially set $10,000 to $20,000 per week.
  • DIA, an DeFI Oracle provider, integrates with Polkadot.

Ivan on tech 

Video Title: BITCOIN WILL DO SOMETHING INSANE THIS WEEK!!!! -30% DUMP AHEAD vs $20,000 PARTY – Programmer

Date: 16-Nov-2020

  • Bitcoin could make a big move this week, either hit 20K or we may see a 20% to 30% drop
  • Chainlink partners with Etherisc to deliver agricultural insurance in Kenya.

Ellio Trades

Video Title: UNLOCKING $100 TRILLION? This low cap gem seeks to bridge CeFi and DeFi

Date: 15-Nov-2020

  • DeFI could be similar to the ICO craze in 2017
  • Low cap gem: AllianceBlock
  • AllianceBlock is bridging the gap between DeFi and CeFi
  • AllianceBlock Partnership with Orion Protocol and Chainlink.

Chico Crypto

Video Title: WARNING! An “EVIL” Entity Wants Control of BITCOIN…

Date: 15-Nov-2020

https://www.youtube.com/watch?v=45Ac-5y2ofg

  • 90% of Bitcoin’s mining pools are controlled by China based mining pools
  • As the value of bitcoin goes up – there is a threat of push to ‘control’ the network from China
  • Binance is looking to push through the 50% mining share and Chico believes this could be dangerous

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place. 

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

Continue Reading

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