Bitcoin

Warning: Don’t buy Bitcoin before knowing these 5 risks

Published

7 months ago

1 July, 2024

Warning: Don't buy Bitcoin before knowing these 5 risks

The world’s leading digital asset has soared in the last year and a half.

Over the past five years (as of June 26), the price of Bitcoin (BTC 4.06%) has soared 454%. There aren’t many assets that have outperformed this one, which currently has a market cap of $1.2 trillion.

There is compelling reasons for investors to buy the world’s leading cryptocurrency at the moment, especially since it is trading at 18% discount to its peak price. But there are risks too.

Regulatory

In the US, the Federal Reserve has a powerful influence on the economy. This is because it can set interest rates and adjust the money supply to stimulate or restrict growth. The central bank essentially controls the currency and affects the country’s finances.

Bitcoin is a direct competitor to the current system, mainly because it is a digital, borderless and decentralized monetary network. There is no single responsible entity and the rate at which new coins are mined cannot be adjusted.

Perhaps the biggest risk for Bitcoin is that the US or the European Union decide to ban it.

Software

Ethereum, CardanoIt is Solana are built with functionality to smart contracts. Bitcoin, on the other hand, has a simpler technical design because its primary use is as a store of value asset.

However, software bugs can be introduced at some point. This could happen, for example, if a majority of the computer operators that support the blockchain approve a network upgrade that produces errors in the ledger that stores all transactions.

Quantum computing

Continuing on the topic of technical risks, Quantum computing It is a technology that could cause problems for Bitcoin. Quantum computers can process complex problems much faster than other types of computers.

The idea is that they could break Bitcoin’s encryption and expose everyone’s private keys. This would undermine network security, likely causing the price to plummet.

In this scenario, however, there may be even more pressing problems. If quantum computing could hack the Bitcoin network, perhaps it could get past the security that protects financial institutions or governments.

While this is a risk to be aware of, I’m sure the Bitcoin developer community is thinking about defending against this with new security measures. And for what it’s worth, Bitcoin has never been hacked in its roughly 15-year history.

Speed and scalability

According to bitinfocharts.com, Bitcoin can only process six transactions per second right now. This is significantly slower than a platform like Visathat can handle 65,000.

Because of its focus on decentralization and security, speed has not been Bitcoin’s strong point. And it may never be able to handle a larger number of transactions.

A key Layer 2 development, known as lightning network, is under development. However, if it doesn’t work out, Bitcoin’s price potential could be limited.

Volatility

While Bitcoin has been a fantastic investment over the past few years, it has been an extremely volatile journey. The digital asset has seen multiple drops of over 50% throughout its history, making it anything but an easy ride for its holders.

It can be argued that Bitcoin is now a more popular financial asset than in the past. There are financial products that support its adoption, such as the new spot exchange-traded funds. And its market value rivals that of some of the most valuable companies in the world.

However, buying and owning Bitcoin for the long term may still pose too great a psychological hurdle for most. Until volatility is substantially reduced, this may continue to be the case.

Neil Patel and its clients do not have a position in any of the stocks mentioned. The Motley Fool has positions and recommends Bitcoin, Cardano, Ethereum, Solana, and Visa. The motley fool has a disclosure policy.

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Bitcoin

What to watch for in the markets

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Photo: Andrew Harnik (Getty Images)

After witnessing one of the largest global IT outages on record, affecting the travel, finance and healthcare sectors worldwideThis week is set to see more political drama, events, and earnings reports from tech giants.

Donald Trump’s ‘Lovefest’ Sets Jamie Dimon Up for Consideration for Treasury Secretary Job

Let’s take a look at what awaits us:

Major companies will release their earnings reports

Major tech companies and others will release their earnings reports this week, paving the way for what the second half of 2024 will look like.

Monday

Verizon will report earnings before the start of operations.

Tuesday

Coca-Cola, Comcast and UPS are all set to report earnings before the market opens.
Tesla will report earnings in the morning, while General Motors will report earnings in the evening.
Alphabet and Visa will report results after the market closes.

Wednesday

AT&T will release its report before the market opens.
Ford and Chipotle will report earnings after the market closes.

Thursday

Earnings reports from AstraZeneca, American Airlines and Southwest Airlines will be released before the market opens.

Trump to speak at Bitcoin conference

Presumptive Republican presidential nominee Donald Trump will speak at the next Bitcoin Conference in Nashville, Tennesseewhich is scheduled for July 25-27. While this is the first time a presidential candidate will attend the conference, it has sparked a debate over whether the crypto-friendly Trump will receive support from the crypto community in the upcoming election.

In addition to Trump, independent presidential candidate Robert F. Kennedy Jr. will also discuss crypto during the conference. Crypto advocates such as ARK Investment’s Cathie Wood, MicroStrategy’s Michael Saylor, and whistleblower Edward Snowden are among some prominent names who will be participating in the conference.

Ether ETFs are on the way

New Ether Spot ETFs are set to begin trading on Tuesday, July 23. Much like the spot Bitcoin ETFs, these ETFs will allow investors to buy the second most popular cryptocurrency like stocks. BlackRock, Ark Invest/21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco/Galaxy Digital are all set to offer Ether ETFs. Crypto asset manager Bitwise predict that trading in the Ether ETF will drive the price of Ether higher, potentially surpassing $5,000.

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Bitcoin

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Bitcoin miners and cryptocurrency companies that have been blocked from going public in the U.S. could ultimately be the biggest winners in the digital asset world under a second Donald Trump presidency. Foreign companies at risk of losing market share could end up being the biggest losers.

That’s the view that’s taking hold among market participants and observers in the wake of the former president’s growing embrace of cryptocurrency as his chances of election grow. survey released Thursday by CBS News showed Trump with the majority — 52 percent — of likely voters in his likely November rematch with President Joe Biden.

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Bitcoin

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Cryptocurrency investor Chris Burniske says Bitcoin (BTC), Ethereum (ETH), Solana (SUN) and the cryptocurrency market in general seem poised for a run.

Former Head of Cryptocurrency at ARK Invest account his 292,200 followers on social media platform X that several catalysts are aligning, suggesting that digital asset markets are on the verge of a bull run.

According to Burniske, a partner at venture capital firm Placeholder, the highly anticipated launch of Ethereum-based exchange-traded funds (ETFs), Republican presidential candidate Donald Trump speaking at an upcoming Bitcoin event, and the current state of the BTC, ETH, and SOL charts all suggest significant optimism for the cryptocurrency markets.

“With ETH ETFs set to go live, Trump speaking at The Bitcoin Conference, and BTC, ETH, and SOL charts looking [they do] (while stocks are weak), it’s hard to imagine a world where we don’t ship next week.”

Reuters recently reported that preliminary approval for ETH ETFs has been granted as the Bitcoin Conference is scheduled to take place from July 25-27.

BTC, ETH, and SOL are trading at $67,333, $3,528, and $174 at the time of writing, respectively.

The venture capitalist too provides an update on his prediction that the total crypto market cap will eventually hit $10 trillion. According to his chart, the path to $10 trillion is currently “23%” complete, as it sits around $2.2 trillion.

Source: Chris BurniskeX

Earlier this month, Burniske he said in an interview with Real Vision CEO Raoul Paul that he has his eye on the Move ecosystem, which was originally built by social media giant Meta and then used to develop layer 1 blockchains Sui (IUE) and Apts (APT).

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Bitcoin

Here’s the next target for BTC before bulls can hold out for $70K

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Here’s the next target for BTC before bulls can hold out for $70K

Bitcoin’s recovery is going well, and the market is seemingly poised to create a new all-time high in the near term.

Technical analysis

Per NegotiationRage

The daily chart

As the daily chart shows, the price of Bitcoin has been rising since it broke above the 200-day moving average.

The market has also reclaimed the $60K and $65K levels and is moving towards the $68K resistance zone, which could be the last hurdle before creating a new all-time high. With the RSI also indicating that the price has clear bullish momentum, it could be just a matter of time.

Source: TradingView

The 4-hour chart

Looking at the 4-hour chart, it is evident that the price has been rising rapidly since breaking the downtrend line to the upside. The market also broke the $65K resistance level with momentum, turning it into a support.

While almost everything points to a new record high in the coming weeks, there is one worrying sign. The RSI is showing a clear bearish divergence between recent price highs, which could indicate a correction or even a reversal in the near term.

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