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The third Bitcoin Halving took place in the evening hours of May 11. The most important thing about "halving".

Bitcoin Course (BTC) and the Halving

The Bitcoin Halving seemed to be pricing itself into the Bitcoin course within a few days. Thus, the price of the largest crypto currency by market capitalization started a rally in mid-April, rising from USD 6,600 to a brief USD 10,000 on May 7. From then on, there was a slump to just under 8,500 US dollars - the mark around which the Bitcoin exchange rate also moved up to its halving.

On May 12, the Bitcoin price was able to catch up somewhat. As reported in detail in our market update, the price of the crypto currency started into the new era after the halving with a slight plus.

Bitcoin Halving: What happened?

In Halving, the reward Miners receive for successfully mined blocks in the block chain has decreased from 12.5 BTC to 6.25 BTC.

The last 12.5 BTC block was "mined" by the F2Pool mining pool, as you can read in the Jameson Loop tweet. In it the Mining Pool has hidden an Easter Egg - a reference to an article in the New York Times. The New York Times article refers to a USD 2.3 trillion rescue package with which the US central bank system wants to protect the US economy from the consequences of the Corona crisis.

This side blow is an allusion to the uncontrolled monetary policy of the central banks, which are able to increase the available money supply as needed. The Bitcoin system, on the other hand, is designed in such a way that the distribution is technologically regulated - in addition, there is a maximum amount of BTC 21 million, which is never exceeded.

Furthermore, the hidden item is likely to be a tribute to the very first block in the block chain. Also hidden here was an article in the New York Times.

The Role of Brazil

A new report from Delphi Digital suggests that Brazil could become the key adaptation driver for the crypto currency in the coming period. The analysts suggest that the economic and political imbalance in which the South American country finds itself could lead to Brazilians turning away from the state's central bank money and towards Bitcoin. A list of exchanges operating in Brazil can be found at https://www.bvl.pt/para-brasil/.

In the report, Delphi Digital also explains that they also expect Bitcoin to be increasingly adopted in general. Which, so also the hope of many investors, should ultimately lead to a rising Bitcoin price. This is not least due to the fact that BTC is now becoming rarer than gold, which could mean for the price, we explain here.

Hash Rate Loses Traction

As expected, the hash rate rose sharply again shortly before halving, only to drop again afterwards. This indicates that mining activity has increased with regard to halving, as miners wanted to secure the more "profitable" blocks here. After all, their wages were to be halved after the halving.

Now many Bitcoin miners may be faced with the question of whether it is still worthwhile to mine the crypto currency. This in turn depends on the price of electricity. On the other hand, it depends on how high the Bitcoin exchange rate is. After all, in order to operate their business in an economically sensible way, they must also sell the mined BTC.

What has changed?

  • There are a lot of indications, that there will be soon another bull run. If the rumors are right and Paypal will accept BTC in the near future, this will be a huge deal. Read more at this site.
  • Compared to the last Bitcoin cycle, there has been an increase in network activity and the number of addresses using and holding Bitcoin.
  • The crypto analysts see a strong increase in small hodlers, i.e. BTC users who hold between 0 and 1 BTC. The highest increase is seen in the group "greater than zero".

What does CFD mean?

CFDs are a form of derivative trading in which an attempt is made to make a profit by speculating on rising or falling prices in international financial markets or financial products such as currencies, government bonds, indices and stocks or commodities. The CFD, a Contract of Difference, is a highly speculative derivative. These products are generally associated with high risk. This is due to their nature as leveraged products. The motto that clearly applies to professionals as well is that higher risks must be taken along with higher chances: Your capital is subject to risk.

A particularly well-known and popular type of CFDs are Bitcoin Futures. Most CFDs that Bitcoin Trader trades on well-known cryptocurrency broker platforms are a type of futures contracts. BitcoinTradingSites is a good source for all questions around Bitcoin trading, BTC CFDs and Futures with reviews of all possible brokers in that area.

What is a leverage product?

The Bitcoin CFD trade earns its profits from the differences of one currency pair, two different currencies, where there is a currency difference, called the ping. A ping is a decimal place in the conversion. Actually a tiny one. But through the so-called leverage effect, mice become elephants. This means that the trader gets a much more extensive trading position for little capital investment. With a leverage of 1 to 17 for example, one dollar will be the equivalent of 17 dollars in the market. The broker lends the trader the rest, so to speak. This is called margin trading.

How a Bitcoin CFD works

The trader trading CFDs will not sell or buy the actual value. Rather, this underlying value of a real stock, commodity or currency pair is divided into units that can be purchased. A broad range of products offered by the broker is of great importance. It should include shares, commodities, currency pairs as well as government bonds and, of crucial importance, a stock index such as Germany 30, which summarises the price development of German shares. For every point now that the price moves in a positive direction for you, you make a profit. If the direction of the price is against you, you will make losses accordingly. The price of the CFD is very volatile, meaning that large jumps are not uncommon.

What makes a CFD?

  • There are no order fees, except for stock and futures CFDs
  • it is a truly transparent product
  • There are no limited terms for CFDs, except for futures CFDs
  • there are no fair value losses
  • the client benefits and participates in rising and falling prices
  • it is possible to trade extremely high volumes with very low capital investment

What are the holding costs when trading Bitcoin CFDs?

Wall Street buildingThe holding costs are amounts incurred for holding the strike price when positions are held after 5 p.m. New York Stock Exchange time. However, if the product has a fixed expiration date, these costs are already included in the price of the product. The holding costs are therefore an interest rate that can be negative or positive, depending on the reference interest rates or also on market conditions. This interest rate will be based on the respective level of the reference interest rate of the corresponding currency of the product.

What are market data fees?

In order to trade successfully, up-to-date information is essential. Who would like to look at the CFD price data as a trader therefore, will take out a subscription. This runs regularly monthly. Depending on the conditions of the provider, the fee will be refunded if the customer trades a certain number of times. A distinction is also made between private and non-private investors. The fee also varies according to the nationality of the trader, in some countries it is taxable. Usually it is only possible to close a trader's account after the account has been covered to the extent that the market data fees are paid. The subscription will be regularly renewed on a monthly basis.

What is the obligation to make additional payments?

Due to the margin trading associated with the leverage function, a loss may significantly exceed the client's real capital in his trader account, eat it up and a debt may continue to exist. The debt will now affect the trader's other assets unless risk mitigation or other arrangements are made. As soon as the account goes into deficit, the trader is therefore obliged to settle it. One of the options available to the bank is to 'force close', meaning that all open CFD positions will be cancelled. If even this amount is not enough, the trader is still fully obliged to settle, but must pay from his private assets.

What is meant by commissions?

Commissions exist only for stock trading. So a commission fee is also due for CFD bitcoin trading. The commissions start at about 0.05 percent of the total positions that are traded. There is also a minimum commission fee of regularly about $5.

What is a Demo CFD Account, Simulator?

On such an account, which is set up for training purposes, one trades with demo money, the newcomer is able to get to know the market under real conditions. With fictitious contracts, fictitious limits a tool for the optimal jump into CFD bitcoin trading.

Conclusion

The CFD bitcoin Trading is not one of the least risky. The leverage effect catapults profits, but also losses quickly into the shambles. Even professionals often stand helplessly before the volatility of the price. So the leverage can be a blessing as well as an evil.

FAQ

What is the Difference between CFD bitcoins Trading and  Stock trading?

Contracts of Difference are financial products. The price of the CFD derivative is based on the underlying, shares, indices or commodities etc. as the base. The trader is only involved in the price development of the units he trades. CFDs are so-called OTC products. These are products, 'over the counter', meaning that trading does not take place directly on the stock exchange, but via a partner institute, a bank. Bitcoin Futures can be traded on regulated exchanges like Bakkt.comor on pure crypto derivatives exchanges such as Deribit.

What exactly is a Spread?

This refers to the difference between the purchase price and the final selling price. The broker calls the two terms Bid and Ask. The ask, or the selling price, will be the price to pay to make a purchase. If you want to sell, the bid, the purchase price, applies. The difference is the spread of the trader, i.e. the score, which is his margin. It is, so to speak, the compensation that the broker takes for his efforts. The narrower the spread, the more profit for the customer. Thus, the spread is one of the decisive variables in a broker comparison.

What is Metatrader?

This is a free of charge provided software. It has its own scripting language and is used for the development of indicators and trading systems, options. The Metatrader represents a popular electronic platform for the future, Forex, and CFD trade. He is multilingual.

Hardly any other topic from the financial world has occupied people as much in recent months as trading the Bitcoin. Many did not understand the first messages, approximately at all around the Hype and had to inform first about crypto currencies.

Media tried to report balanced and could not hide thereby always their own opinion. Critical voices spoke after the rapid ascent of the Bitcoins and many further, digital currencies of an uncertain market and prognosticated a crash, with which the investors would lose much money.

Now potential success models always have it a little hard at the beginning, but who analyzes the trend curve of the Bitcoins once exactly fast notices that the crypto coin brought in within some years an unbelievable net yield for investors. From a few cents of its value, the currency climbed in winter 2017 to the magic limit of 20,000 euros, which surprised even experts.

Panicked, many investors sold their coins in the course of the Christmas business because they did not plan long-term and believed in success. As a result, the price temporarily collapsed, but was able to recover long ago. It is even predicted that the Bitcoin could one day be worth far more than 100,000 euros if the technology of the blockchain is refined.

Now you want to know if you can earn money with Bitcoin? The answer is YES. However, when making money with Bitcoin you should know some basic knowledge about crypto currencies, blockchain and investment strategies. Read more about this topic in this post: https://www.infonews.co.nz/news.cfm?id=119275.

Where can I buy Bitcoins?

In the beginning, the coins floundered in the shallows of the net and served to exchange goods or services. Meanwhile, the Bitcoins have also arrived on the standardized trading centers of the world. Some banks in Germany make it possible for you to make money easier with Bitcoin by offering you Bitcoins for sale.

  • A frequently used provider in this field is the Fidor Bank, headquartered in Munich, which focuses more on online banking and modern financial solutions. This gives you a secure way to get to Bitcoins. You can also buy Bitcoins on trading platforms like litebit.eu.
  • In the meantime, however, you have to verify yourself everywhere in several stages to start earning money with Bitcoin and Co (-> http://fooyoh.com/). Usually, a copy of your passport and bank account details are sufficient to confirm your authenticity. Here the state wants to put a stop to the money laundering factor in particular. Another solution for the purchase of coins is Coinbase. Coinbase is an international platform that supports the acquisition of Bitcoins.
  • However, the guidelines and rights on international platforms can generally be somewhat more limited. It is difficult to settle possible disputes abroad. Experts therefore recommend that if you want to make money with Bitcoin, you should rely better on German or European solutions.

Earn money with Bitcoin

The Bitcoin Investment Strategy is by far the best online video course on Bitcoin and Co. that I have seen on the internet so far. The clear and easy to understand language with the simple instructions makes it super easy for me as a beginner to get into Bitcoin. Thanks to Marco Lachmann-Anke for the great support.

Making money with Bitcoin sounds easy, but there are a few aspects you should keep in mind so that you don't end up facing a fait accompli. It is often reported that your Bitcoins could be stolen if hackers steal them from you. New users in some parts of the digital currency get too many and wrong ideas, in others they act with the greatest security risk instead.

After you buy your Bitcoins, you need to keep them safe so that you can start earning money with them. It is important not to allow unauthorized access to your Bitcoins. In some cases, this also applies to dubious platforms that promise you a virtual account. If this account is still abroad, the chance of a hacker attack is huge. Usually Bitcoins are stationed in a wallet.

If you are serious about making money with Bitcoin, using a wallet is essential. The wallet is nothing more than your digital wallet. Your Bitcoin is protected from external access by a secure number code in the digital wallet. It is enough if you know the number code and write it down, so you can keep your wallet on paper, but don't forget how many Bitcoins are currently on your wallet. Practical apps like Blockchain also allow you to run a digital wallet on your smartphone.

You can also earn money while playing arcade games. Check the page Lnarcade for an overview.

Invest only the money you can actually do without

Anyone who wants to make money with Bitcoin and Co is interested in making fast and high profits, but this is not possible without losses. Be aware that if you want to invest in currencies of any kind, you have to take the loss into account. As you can see from the trend curves, the Bitcoin is subject to fluctuations of a political or financial and global nature.

So you may not only win money, but also lose some. If you have to budget with your money and every cent counts, you better think twice about whether an investment is worthwhile for you. According to the current status, the investment in the Bitcoin is worth it in any case. Nevertheless, put only as much money into this concept as you can spare, so that in the worst case you don't have to sit on losses. Analyze the market and act in advance if possible.

As with many investments, you must always keep an eye on the movements of the market. Making money with Bitcoin depends on technological advances and innovations. Innovations in the blockchain, for example, can cause the Bitcoin price to explode overnight. This means being clever and investing in time to generate the highest possible returns. An analysis of technology trends will take you further and show you in which direction the Bitcoin could tend in the future. The financial markets worldwide can also be good indicators to track movements.

The bottom line on making money with Bitcoins:

1. There are risk free ways to get BTC, read more at Infobeat.

2. Crypto currencies are clever investment products with potential. Once you have understood how the crypto currency is structured, what a blockchain is, where you can buy and trade your Bitcoins safely and who offers you a wallet, nothing stands in the way of earning money with Bitcoin.

Regulation and investing in Bitcoin, Libra and other crypto currencies was again a very hot topic in the past days. After statements of US President Donald Trump and US Federal Reserve Chief Powell, politicians in Germany and all over Europe have expressed themselves on this topic.

These opinions swing since some US senators statements again in a more positive direction and thus it is calculated the Bitcoin opponent country China, which places itself now apparently behind the crypto currency. At least in a small local court in Hangzhou.

In a tweet by Dovey Wan, the entire joy of the Crypto community is unleashed on Twitter. According to their tweet and a referenced source, the Hangzhou Internet Court has legally recognized Bitcoin as a virtual property with financial value for the first time in China. This makes investing more interesting.

To make it clear, this is not the first time that Bitcoin has been described as a legal asset in China by the Chinese judicial authorities. In 2018, the Shenzhen Arbitration Commission declared that "the asset should be protected under the law" and is legal for ownership and transfer.

The Hangzhou Internet Court now adds credibility to Bitcoin in China by officially declaring the virtual currency legal. Bitcoin meets the virtual property requirements because Bitcoin has value, is scarce and distributable.

While this will not bring the banned Bitcoin and Crypto trade back to China, it does give Bitcoin owners in the country certain rights to Bitcoin as a commodity.

New rights for Bitcoin owners in China - The Background

The verdict was reached in a case dating back several years. It describes a real estate dispute between a buyer (Mr. Wu) and the e-commerce platform TaoBao and its FXBTC exchange. The client originally wanted compensation of USD 11,000 for the loss of 2,675 Bitcoins. A lot that would have a much higher value in today's market.

The plaintiff, Wu, complained that he had not been warned of the impending closing of the exchange and therefore had not withdrawn any funds prior to its closing. However, the court rejected the plaintiff's claims for damages for lack of evidence of connection to the account and related assets.

Even more important than the judgment - at least for all but the plaintiff - is the court's statement that Bitcoin is a valuable commodity that represents an important legal precedent.

"This is a clear signal that the tax authorities are beginning to relax control over the digital currency and the virtual currency," said Cao Yin, an expert in the blockchain sector, to the Global Times.

  • Nevertheless, just because Bitcoin is finally recognized as a legal commodity in China, one should not expect the stock exchanges in the highly controlled economy to open their doors soon.
  • Nevertheless, an unexpected success for Bitcoin, even if Mr. Wu doesn't care.

In order to be successful in crypto currency trading, you need not only the important knowledge about the current crypto currency course/list, but also the latest crypto currency news.

You always have to stay up to date to be really successful in trading a crypto currency. The basic technical knowledge is quite complex, at least if you've never had a great look at technology before. The knowledge about the markets and their functions, on the other hand, is relatively easy to acquire.

The advantage of virtual currencies is that you can get direct access to the markets easily and without effort. You can use the services of a crypto currency broker to invest in crypto currency like BTC, find out more at vigoe.es/. But in principle you can also do without its services and venture directly into it yourself.

In addition, there are a number of other possibilities. Binary options on virtual currencies are already possible, and trading within a crypto currency ETF and with crypto currency shares should be possible over a short or long period of time.

Is it possible to trade via an app?

Here, too, there is a definite "yes" as an answer. There are now a number of different applications that allow direct access to your own crypto currency wallet and thus allow trading.

These are very secure and partly also recommendable. Many crypto exchanges now also offer mobile solutions with which you can control your trades from anywhere in the world and at any time.

This is also important, because the prices of every crypto currency are usually very volatile. This means that they can rise and fall quickly. For this reason, as a trader you need a little tact and sensitivity to be able to wait for the right time.

An app is an ideal solution and allows the trader to react flexibly to the changes in the crypto currency market and to keep an eye on the crypto currency charts while on the move. In the best case, the app can also be combined with one of the large crypto exchanges and offers the possibility to view the various statistics. Then you have all the advantages you would have with a normal PC.

Do I have to pay taxes on trading?

This question is a little too complicated to be answered in general. For this reason this section deals only with the tax law of the Federal Republic of Germany. Other valid tax laws in other countries remain unconsidered. Basically the tax office regards the trade and the possession of crypto currencies as private money. That means that only taxes result if one obtains a profit from trading within one year.

There are two methods of determining profits: The FIFO and the LIFO. The first method assumes that the first coin bought is also the first coin sold and the difference of the price forms the tax profit. The LIFO method assumes that the last coin purchased is the first coin sold. Depending on the way in which they are interpreted, traders can use both methods to their advantage.

  • Those who trade crypto currencies professionally should in any case seek the help of a tax advisor. This ensures that no mistakes can be made in the annual income tax return. These are often very expensive, and more often punishable.
  • As a professional trader for crypto currencies, you definitely need the support of a trader, even if you invest in crypto currency funds or other financial products of this kind.

Where can a crypto currency be traded quickly and securely?

On any crypto exchange. There is a rich offer here. There are stock exchanges that have specialized entirely in one currency. But usually several, if not all, currencies can be traded on one of the major exchanges. To start trading successfully, you only need a wallet for the respective crypto currency and a successful registration at one of the exchanges.

The registration is usually very secure and requires additional verification. Once everything has been completed and the account has been created, trading can begin immediately. Alternatively, you can use the services of a broker, or purchase the coins privately.

While the first option is still safe as far as possible, one should be a little more careful with the second solution.

In the Bitcoin network, the number of transactions in the Mempool has decreased. There is also a new version of C-Lightning. Latest news from the Bitcoin cosmos for crypto trading.

According to the latest Bitcoin Optech newsletter, the number of transactions in Bitcoin's Mempool has shrunk a hundredfold in the last week. In other words, the size of the Mempool fell from 100,000 to 1,000 transactions between 26 June and 3 July. This might also be a reason for the recent surge of BTC.

The Lightning Network Daemons

According to the newsletter, there is also a new version of the Lightning Network Daemons, namely LND 0.7.0 beta. This is the first version that uses a Watchtower implementation. This in turn allows third parties to protect in-channel finds of offline users. In addition, the new version promises several bug fixes as well as an improvement of the API connection for tracking payments.

The C-Lightning 0.7.1 version is now available to match the new daemons. This Lightning version contains new plugins and RPC as well as improvements in the handling of the Gossip protocol. The BTC Fintech industry will also profit from this, read more about this topic at this website.

New Proposals for Protocol Change

The Bitcoin enthusiasts of the newsletter also report on a new proposal that foresees new ways for the Lightning Protocol. This is intended to prevent transactions in the Bitcoin network from getting "stuck" in the future and to guarantee faster processing overall. Hiroki Gondo's proposal would, however, entail major changes to the Lightning Protocol, which is why it is still under negotiation. Another proposal is to enable standardised data transmission by means of Lightning payments.

Swaps and the Bitcoin Lightning Network

Finally, there is now the possibility of so-called loop-ins. This makes it possible to exchange bitcoins in a regular onchain UTXO within a Lightning Channel. This option is now complementary to the loop outs, where you can swap bitcoins offchain, i.e. from the blockchain. The latter possibility to execute payments is called submarine swaps.

The crypto currency fell at times below 11,000 dollars - and thus around 3000 dollars within 24 hours.

The Bitcoin remains true to itself and its extreme price fluctuations: After the Bitcoin had continued its flight of fancy late on Wednesday evening at first and had risen to just below the 14,000 dollar mark, it dropped by up to 3000 dollars in the following 24 hours.

The digital means of payment fell below the $11,000 mark on Thursday evening on the Bitstamp platform, after the cyber currency had previously reached an 18-month high of just under $14,000. It is very popular in South America recently, see https://www.plural.mx/comunidad/bitcoin-se-propaga-en-america-latina/.

On Thursday evening, the digital currency was around 16 percent lower at $10,836, before recovering slightly on Friday. Most recently, the Bitcoin fluctuated around the 11,500 US dollar mark again.

According to experts, Facebook's plans to introduce its own digital money had rekindled interest in crypto currencies in recent days. In addition, institutional investors increasingly pushed into the market. However, some analysts warned of a new speculative bubble that could burst at any time. Extreme price swings are not uncommon at Bitcoin, as there is no state or central bank behind the cyber currency to intervene if necessary.

Flying high since January - Libra supports

In recent weeks, the Bitcoin share price has risen strongly. Since the beginning of the year, price gains have been around 250 percent. This is reminiscent of the massive high of 2017, which was followed by a violent crash in the following year.

Most recently, Bitcoin and other crypto currencies benefited from the announcement by Facebook and other companies to create a global digital currency called Libra. In addition, market observers cite other reasons for the surge, including the prospect of a looser monetary policy on the part of major central banks. The argument, similar to the gold price, is that interest-free investments would become more attractive with falling interest rates.

The fact that Fed chief Jerome Powell declared that he would keep a close eye on the development of the Libra even boosted the Bitcoin's rally. The concerns of the central banks are currently seen more as an indication that crypto currencies have what it takes in the medium term to fundamentally change the financial and payment system.

"Investors continue to look forward to 'Libra' and remain optimistic about a successful launch of the company's Facebook crypto currency, although voices against the plans have intensified," said analyst Timo Emden of Emden Research. Meanwhile, leading central bankers are calling for stronger regulation of Libra, Bitcoin & Co. In view of the price gains of the oldest and most important cyber currency of more than 120 percent within six weeks, experts warn against price setbacks. This is exactly what happened during the night.

Bitcoin and Libra: Money is unfortunately stupid

In the slipstream of the Bitcoin high-altitude flight, other crypto currencies such as Ether and Bitcoin Cash had also continued to gain ground. The total value of all around 2270 crypto currencies was last put at 350 billion dollars, but in fact changes extremely quickly.

"The Mainstream interest in crypto currencies is at present enormous , so Emden. The situation is somewhat reminiscent of summer and autumn 2017.

He's back! Whether you recognize it or not, the crypto currency market is hot again and it is led by the world's most popular and largest digital currency, Bitcoin.

After Bitcoin reached an all-time high of more than $20,000 per token in December 2017, the crypto currency lost more than 80% of its value over the next year. But since its low of just over $3,000 last December, Bitcoin has been virtually (and literally) unstoppable. Earlier this week, Bitcoin reached the $8,800 mark in daily trading, its highest level for just over a year, with the very important and psychological $10,000 mark once again within reach.

But for many, Bitcoin's rise is a mystery. After some research, six logical reasons can be found for the almost tripling of the value in the last six months.

1. the crypto currency is somehow "technical

One of the biggest arguments against investing in crypto currencies is that there are no basic metrics (at least the ones we are used to as equity investors) that will help investors determine an appropriate value for crypto tokens. With the exception of the underlying processing speed of the blockchain, there are no comparable metrics between tokens and blockchains.

This means that investors almost always rely on technical analysis - i.e. graphic patterns, resistance to the crypto currency and volume - to determine where digital currencies will go next. Relying heavily on technical analysis tends to lead to wild and momentum-based fluctuations in crypto currencies up and down, which is exactly what we are seeing at Bitcoin right now.

2. the premiums for mining will soon be reduced by half

A more tangible reason for Bitcoin's increase is the expected halving of mining premiums by May 2020.

Crypto mining describes the process by which individuals or companies validate transactions in a blockchain as correct and true. In Bitcoin's case, the transactions are validated using the proof-of-work model, where powerful computers solve complex equations to verify the transactions on the blockchain. As you might imagine, using these powerful computers can be expensive due to power costs and cooling requirements (computers can generate a lot of heat when fully operational). However, the block premium for people who are the first to solve a block (i.e. group) of transactions is 12.5 bit coins, which at Tuesday's rate of 8,700 US dollars per token is 108,750 US dollars.

But every few years the block premium is halved. The next expected halving should take place in May 2020, with the premium falling to 6.25 bit coins per solved block. Essentially, before this expected event, investors and miners are trying to push up the Bitcoin price, with miners trying to get as many block bonuses as possible before halving.

3. perceived scarcity

On the basis of the previous point, the perceived scarcity is probably responsible for part of the recent increase.

The world's largest crypto currency has 21 million tokens, of which more than 17.72 million are already in circulation, according to data from CoinMarketCap.com. This number grows as new blocks are solved and block bonuses are paid to the miners. Similar to how gold derives its value from the scarcity of existing physical metal, Bitcoin has further advanced the idea that the limited supply of tokens creates value. This imminent halving next May is another "proof" of this perceived scarcity.

4. increased institutional interest

The fourth reason why Bitcoin has a higher price can be attributed to the growing institutional interest from Wall Street and wealthy professional traders.

Basically, Bitcoin can only be acquired via unregulated crypto currency exchanges, which is almost always a taboo for institutional investors. The only exception is that Bitcoin futures contracts were introduced in December 2017 by CBOE Global Markets and the CME Group, which allowed institutions to bet on the future price of the popular digital tokens. Visit infobeat.com, to learn more about BTC futures. While CME's number of Bitcoin futures contracts was typically between 3,000 and 4,000 contracts per day before Bitcoin started to rise again, this number doubled in the following weeks and months. Although it is unclear whether these bets are predominantly bullish, this suggests that interest in Bitcoin on Wall Street is increasing.

5. A forthcoming SEC decision on Bitcoin ETFs

The rally at Bitcoin could be caused by a pending decision of the SEC Commission (SEC) as to whether Bitcoin Exchange Traded Funds (ETFs) will be listed on the stock exchanges or not.

A decision by the SEC was actually expected months ago, but was postponed several times by the regulatory authority. In a document filed by the SEC a little over two weeks ago, the regulator announced that it would consider public comments for three weeks and the refutations for another two weeks. Due to the new deadline, the SEC is expected to decide on Bitcoin ETFs by August 19 or October 18 at the latest if the authority again postpones its decision.

If Bitcoin ETFs were allowed to list their shares on major US exchanges, this would likely result in capital inflows from both small and large investors. This could also be a kind of stabilising force in an otherwise very volatile area.

6. blockchain projects are progressing

The sixth and final reason for Bitcoin's great rally may be the promotion of blockchain projects within the financial sector as well as in other sectors and industries.

The blockchain is the transparent but unalterable digital ledger that underlies almost all crypto currencies in which transaction data is logged. Although Bitcoin's blockchain is designed exclusively to speed up the processing of financial transactions, it is still the foundation on which other projects have emerged. As more and more brand companies consider including the blockchain in their mix, the perceived validity of Bitcoin's "story" is gaining momentum.

In its tenth year Bitcoin has started a new attempt and since the beginning of the year has recorded a double-digit percentage price increase from USD 3,766 to USD 5,290 (as of 18 April). Since its peak of USD 19,290 in December 2017, the crypto currency had lost very much in value until the beginning of the year. But is Bitcoin now celebrating its comeback?

Sources of this article

  1. bitrebels.com
  2. neconnected.co.uk
  3. bitcoin.org/

Bitcoin still dominates the crypto market

Bitcoin is the most widely used digital currency and the leading crypto currency in terms of market value, total market capitalisation and number of transactions. Bitcoin currently dominates the crypto currency market with a market capitalisation of USD 93 billion and a market share of around 50%. Ethereum - the second largest crypto currency - has a market share of only about 10% at a price of USD 171.00. According to CoinMarketCap, there are 2,126 crypto currencies in total.

The first Bitcoin was mined on 3 January 2009 and was first listed on a crypto exchange in October 2009 at a price of USD 0.000764 per Bitcoin. On May 22, 2010, the first commercial transaction with Bitcoin was carried out, in which a programmer bought two pizzas with 10,000 Bitcoins at a price of USD 0.0025 per Bitcoin. Today this amount of Bitcoin would be worth about USD 53 million. Since then, more than 400 million transactions have been carried out with Bitcoin and the number of transactions per day is currently around 400,000.

The Bitcoin price has also risen dramatically. In February 2011, a Bitcoin reached the equivalence of one US dollar for the first time. In March 2017, the price for a Bitcoin was above the spot price for an ounce of gold for the first time. On December 17, 2017 the Bitcoin reached its highest level of USD 19,290. The increase in transactions as well as the price increase since the beginning make the Bitcoin very volatile.

After the massive price slide last year, Bitcoin has now started a new attempt and since the beginning of the year has recorded a price gain of USD 3,766 to USD 5,290 (as of 18 April). Since its high of USD 19.290 in December 2017, the crypto currency had lost very much in value until the beginning of the year. But the Bitcoin could now celebrate its comeback.

Upcoming "Halving" is course driver

The next halving is about to take place, which is a built-in deflationary mechanism to create an artificial shortage of bit coin and avoid inflation. Those who provide computing power for the provision of transactions are rewarded with Bitcoins. However, in order to avoid too many bitcoins being in circulation, this remuneration is halved at regular intervals. When the unknown founder Satoshi Nakamoto mined the first Bitcoin at the beginning of 2009, he was paid 50 Bitcoins. After almost four years, the pay was halved to 25 Bitcoins.

The last halving to 12.5 Bitcoins took place in July 2016. In future, mining will be rewarded with only 6.25 Bitcoins from 24 May 2020. This artificially reduces the Bitcoin supply in order to stabilise the price of the Bitcoin. Halving will end in 2140 when the maximum number of 21 million Bitcoins has been reached. This halving is already priced into the Bitcoin price. When the last halving took place in July 2016, this resulted in the largest price rally to date.

In addition, some Bitcoin supporters took some of their profits last year and would now return to the market. A Bitcoin order weighing USD 100 million seems to confirm this. In addition, there are constant technical improvements that are also driving demand.

How to participate in the price rally?

The upcoming Halvings could be used as an entry point into the Bitcoin. Initial analyst estimates predict a strong rise in the Bitcoin price around the coming halving. But even with an expectation of a moderate price increase, investors with an open-end participation certificate on Bitcoin can still rely on this outlook without owning Bitcoins themselves.

Participation certificates

As the further development of the share price depends on a number of factors relating to Group policy, the sector and the economy, investors should take the risk into account in their investment decisions. Developments can always be different from investors' expectations, resulting in losses.