The cryptocurrency market has been seeing a huge downtrend over this past year and the past two weeks saw the market crash, recover and then crash again. Many enthusiasts of Bitcoin thought that the market recovering of early April and late June 2018 will be sustained. Little did they know that the positive recovery was just for a moment.
Some of the things that could prevent the Bitcoin bulls breaking out and bringing Bitcoin back to its heights include, the challenge of scalability, Craig Wright views on fighting back, inactivity between traders, fall in mining activity and the drop in some of the major cryptocurrencies.
If we take a look at scalability we must look into the Lightning network. This was introduced into the market to correct the challenge of scalability but the technicality that is required for its use amongst Bitcoin users in order to improve the scalability of bitcoin payments wasn’t acquired by many. At the moment, Bitcoin payments take a few moments to be completed in addition to being increased in the transaction fees unlike previously. This has made crypto users search for quicker and more cost-effective ways to carry out their transactions.
Craig Wright is one of the supposed minds behind the team that created Bitcoin.
As said by ZyCrypto:
“It could be seen that he was performing his fulminations even though many thought he was a joke, that he would help to collapse the system once bitcoin miners leave bitcoin mining for BCH in other to gain its hard forks that were recently launched.”
With the market cap of Bitcoin being around 78 billion it could be suggested that the trading volume is more than 950 percent lower than the market cap. With this in mind, there is a lot of inactivity amongst traders and Bitcoin users during the market as it stands.
Between the end of August and the middle of November this year, the hash rate of Bitcoin has declined by over 20 million TH/s. This indicates that miners have been slowing down their mining activity.
Most of the coins are currently trading against Bitcoin and they also seem to be going through a decline, similar to the leading crypto. With this, there isn’t a lot of hope for the Bitcoin market to use them to survive as most are coupled with however well Bitcoin does.
What are your thoughts? Let us know what you think!