Bitcoin Bitcoin’s Brexit Moment Happening Now (Full Explanation) Published 1 year ago on July 19, 2017 By Mati Greenspan Hi everyone, You may have heard about the bitcoin scaling issue that is currently playing out so I would like to offer the following as a simple yet comprehensive explanation of what is about to happen. U.K.’s Brexit referendum on June 23rd, 2016 caused the British Pound to lose 10% of its value in a single night, which is a massive move for a regular currency. For cryptocurrencies, a move of 10% in a day has become a regular occurrence, so the price effects could be far more significant here. Hope you enjoy and appreciate any questions, comments, and feedback. @MatiGreenspan eToro, Senior Market Analyst Please note: All data, figures, and graphs are valid as of July 19th. All trading carries risk. Only risk capital you’re prepared to lose. The History It’s great to see that the bitcoin network is growing rapidly. However, the rate of growth has become quite alarming lately as the network was not initially setup to handle this much traffic. At the moment, each block in the bitcoin blockchain contains 1 Megabyte of data, which can hold approximately 1,000 to 2,000 transactions. Usually, it takes about 10 minutes to mine a block. So if there are more than a few thousand transactions in a short time it results in the network getting clogged and people can wait a long time for their transactions to be processed. Sometimes even a few days. True, bitcoin is a decentralized currency so we don’t have any government or central bank deciding on monetary policy, but it’s clear here that the community needs to make a decision to improve the protocol. Bitcoin is controlled by the miners. People who run the bitcoin software and confirm transactions. There are many different types of software that are used around the world. In the old days, you could mine bitcoins with a laptop. These days it requires a lot more computer power. So miners have begun to form groups called mining pools. They all link their computers together and when they mine a block, they divide the rewards among themselves. There are about twenty major mining pools at the moment. These are the guys who are currently arguing about the best way to improve bitcoin. The Possibilities So far there have been about 200 different proposals to improve bitcoin. Seeing that things were not moving, one of the proposals BIP148 put a hard deadline on this issue of August 1st. Less than two weeks from the time of this writing. The goal of BIP148 is to force other miners to upgrade to the SegWit protocol. Without getting too technical, SegWit is a way of improving the bitcoin protocol in a way that each block can hold more transactions. The idea is that anybody who does not upgrade their software to allow the implementation of SegWit will be rejected, causing a split (hard fork) in the network. Wait… what’s a fork?? A hard fork is a major split that causes two different currencies to be created. This is what happened with Ethereum and Ethereum Classic about a year ago. Ether classic was the original form and Ethereum that we know today was the secondary currency that was created. A soft fork is a simple change in protocol that does not split the network. For example, if everybody upgrades their software to BIP148 then it will upgrade the protocol to SegWit without causing a split. Of course, that’s a big IF. However, some people were not happy with this solution. They quickly put together another proposal that would take effect before the August 1st deadline called SegWit2x. The software that allows for SegWit2x should be available this Friday, July 21st and if it is adopted it will implement SegWit as a first step in the solution. Then, over the next six months will actually increase the block size from 1 MB to 2 MBs per block. The setback is that this type of change to the bitcoin blocks would require the creation of a new currency. Yes, another possible hard fork. For your convenience, we’ve put together a flow chart so that you can visualize the different possible paths that bitcoin faces at this time. This image can also be found online at: http://imgur.com/a/0nWwn Special thanks to everyone who helped put together this diagram. Our creative director Elior Abecsis, Moriah Waterland who is a leader in our efforts to put eToro on the blockchain, and Zach Chester our brand new Cryptocurrency Analyst. Hoping that everything goes smoothly and wishing you a very pleasant day ahead. This content is provided for information and educational purposes only and should not be considered to be a investment advice or recommendation. The outlook presented is a personal opinion of the analyst and does not represent an official position of eToro. Past performance is not an indication of future results. All trading involves risk; only risk capital you are prepared to lose. Featured image from Shutterstock. Story image from eToro. Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink. Rate this post: Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way. (0 votes, average: 0.00 out of 5)You need to be a registered member to rate this. Loading... Mati Greenspan 4.6 stars on average, based on 134 rated postsSenior Market Analyst at Etoro.com. Follow @HackedCom Feedback or Requests? Related Topics: Up Next Markets Calm Before Central Bank Madness Don't Miss Dollar Cracks Again as Stock Fade to Red and Cryptocoins Surge You may like 5 Comments 5 Comments knightofone July 19, 2017 at 11:56 am The segwit2x client is already avaimable, and miners started signaling ahead of schedule Log in to Reply embersburnbrightly July 19, 2017 at 4:59 pm Nice explanation and diagram; thanks! Log in to Reply Mati Greenspan July 19, 2017 at 5:01 pm Thanks embers. 🙂 Log in to Reply Nachshol July 19, 2017 at 8:28 pm So…. What we, as crypto investors, should expect towards this occurrence? Is it possible to assume that the newer coin would be “better” then the old (like ETH and ETH classic)? Log in to Reply Mati Greenspan July 21, 2017 at 10:12 am Great question. It’s still not clear. A segwit2x coin with larger blocks would very likely be better than the current version. However, getting to that point is quite dangerous. Log in to Reply You must be logged in to post a comment Login Leave a Reply Cancel replyYou must be logged in to post a comment. Altcoins Crypto Market Flash-Dips 12%; Bitcoin Price Hits New Yearly Low as ETH, TRX Bleed Out Published 12 hours ago on November 14, 2018 By Greg Thomson The global cryptocurrency segment experienced a market-wide sell-off on Wednesday afternoon, losing $25 billion, or 12% of the overall market cap. The bulk of the losses struck in a brief one-hour window, between 15:30 and 16:30 UTC. The sudden flash dip came as a surprise to say the least, and followed this morning’s $7.5 billion sell-off which, without the benefit of foresight, seemed significant at the time. Just When We Thought We Were Out… Now the altcoin setup looks radically different, with several coins threatening the yearly lows of August-September once again following an entire quarter of recovery. All of Bitcoin Cash’s recent gains have disappeared, with BCH sinking 30% in the last week alone, and close to 20% in the last day. The same pattern persists among all the recent market growers, as yet another great correction unfolds. BTC/USD Hits 13-Month Lows Bitcoin did however strike new yearly lows, or thirteen-month lows to be precise, after BTC/USD fell to $5,765 – a level not witnessed since October 2017. That puts BTC on 9.8% losses over less than twelve hours, after falling from this morning’s $6,395. Of Bitcoin’s $6 billion volume at time of writing, you have to look eleven places down the charts to find the first cryptocurrency that BTC has been significantly traded against. The top ten most concentrated trades are all against either fiat currency (USD and KRW), or dollar-pegged stablecoins – specifically Tether (USDT). Ethereum Sinks Along With Mining Profits As covered earlier on Hacked, Ethereum’s initial fall below the $200 mark resulted in Ether mining no longer being profitable. However, the $189 price quoted in the article continued to fall further, landing on $179.49 and resulting in a 14.4% crash for Ethereum from last night’s high of $209.78. That’s still slightly above the $170 valuation recorded during the dip of September this year, and saves ETH from notching up a new yearly low along with BTC. Tron (TRX) Threatens Yearly Lows The value of TRX fell 16% from $0.022358 to $0.018757 for Wednesday, pushing the coin closer to the lows of August when TRX hit the eery number of $0.016666 before rebounding. This time the price rebounded to the $0.019 level, which is a hopeful sign for the altcoin, although TRX losses now stand at 22.5% for the last seven days. All of the coin growth surrounding BitTorrent, record transaction volumes, coin listings and everything else that came out of Tron HQ in recent months has now effectively been wiped out. Few coins were spared the bloodletting, and even the stablecoins were shaken by the sudden sell-off as Tether dipped to the $0.97 range once again. Despite the numbers quoted above, the worst of the losses came from the lesser altcoins, with recent gainer Basic Attention Token (BAT) now down more than 40% for the week. Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading. Featured image courtesy of Shutterstock. Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink. Rate this post: Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way. (1 votes, average: 5.00 out of 5)You need to be a registered member to rate this. Loading... Greg Thomson 4.4 stars on average, based on 89 rated postsGreg Thomson is a full-time crypto writer and digital nomad. He eats ICOs for breakfast and bleeds altcoins. Wherever he lays his public key is his home. Follow @HackedCom Feedback or Requests? Continue Reading Altcoins Update: Crypto Selloff Deepens as Bitcoin Hits New Yearly Low Published 13 hours ago on November 14, 2018 By Sam Bourgi The cryptocurrency market underwent a massive selloff Wednesday, as bitcoin breached new lows for the year and major altcoins booked double-digit losses across the board. Bitcoin cash experienced the largest percentage drop, effectively erasing gains made in the run-up to Thursday’s hard fork event. Market Update Cryptocurrencies have given up a combined $25 billion in value over the last 24 hours, as markets approached new lows for the year. The selloff intensified through the late morning session, driving the crypto market cap to a low of $187 billion. At the time of writing, cryptoassets were worth $188.4 billion collectively, according to CoinMarketCap. Trade volumes surged 33% to $17.6 billion as investors rushed to liquidate their positions amid the selloff. All major exchanges reported a sharp rise in daily turnover, with volumes on Huobi, Bitfinex and LBank surging 100% or more in the last day. Bitcoin’s price collapsed more than 10% on Coinbase to reach a session low of $5,530. At the time of writing, BTC/USD was worth $5,675. Bitcoin cash, the fourth largest cryptocurrency by market cap, relinquished a whopping 18.1% to reach $433. In doing so, it completely reversed all the gains made in the last two weeks. Ethereum fell 12.1% to $184, XRP lost 11.9% to $0.4576 and Stellar XLM declined 12% to reach $0.2303. With the exception of USDT, a dollar-backed stablecoin, all cryptoassets in the top-20 lost 7% or more on Wednesday. The following snapshot, courtesy of CoinMarketCap, highlights the extent of the selloff. Bitcoin Dominance Grows While bitcoin certainly wasn’t spared from the latest rout, its share of the overall market climbed back above 54% on Wednesday, a sign that remaining capital was consolidating in the largest asset store. Bitcoin’s dominance rate has since fallen back to around 53.1%. Extended periods of volatility for altcoins and tokens have provided bitcoin with a linchpin of support since the bear market began earlier this year. This has been most recently demonstrated by narrower price ranges and sharp declines in volatility for the leading digital currency. As Hacked recently reported, bitcoin’s volatility index fell this week to its lowest level in over two years. Although there was no immediate catalyst for the rapid decline in market prices, anxiety over the future of bitcoin cash likely factored into the equation. The protocol’s primary implementation, dubbed bitcoin cash ABC, has won support from major industry players ahead of Thursday’s hard fork. However, recent data show that the network’s hash rate has tipped in favor of bitcoin SV, a competing protocol being pushed by Craig Steven Wright, Calvin Ayre and some very large mining pools. This information may have contributed to a sharp spike in SV futures prices on Wednesday. Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading. Featured image courtesy of Shutterstock. Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink. Rate this post: Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way. (2 votes, average: 3.00 out of 5)You need to be a registered member to rate this. Loading... Sam Bourgi 4.6 stars on average, based on 664 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: email@example.com Twitter: @hsbourgi Follow @HackedCom Feedback or Requests? Continue Reading Analysis Crypto Update: Selloff Accelerates as Bitcoin Brakes Support Published 18 hours ago on November 14, 2018 By Mate Cser The bearish period continued so far today in the cryptocurrency segment with several majors falling below key short-term support levels. Bitcoin violated the $6275 level, Ethereum fell back below $200, while Ripple is now under the $0.50 price level again. The smaller coins are also under clear selling pressure, and our trend model continues to overwhelmingly negative picture, especially with regards to the long-term time-frame. BTC/USDT, 4-Hour Chart Analysis Bitcoin hit its lowest level in a month, dropping below the $6275 support and likely setting up a test of the $6000 level and putting the key long-term support zone near $5850 in danger as well. The total value of the market declined by more than $5 billion due to the selloff, and bulls would need a quick recovery to avoid another leg lower in the bear market following the lengthy consolidation period. Bitcoin faces strong resistance at $6500, $6750, and $7000 while below $5850 the next major support zone is found between $5000 and $5100. Traders should still stay away from opening new positions, with our trend model still being on a short-term sell signal. XRP/USDT, 4-Hour Chart Analysis Ripple also followed the broader market lower, and the now it’s clearly below the $0.51 level, with the recent weakness warranting a downgrade to neutral in our trend model concerning the short-term time-frame. While the long-term outlook is still neutral, given the segment-wide trends, traders and investors should remain cautious with new positions even in the case of a renewed buy signal in the coming period. Support below $0.51 is still found between $0.42 and $0.46, while further resistance is ahead near $0.54 and $0.57. Litecoin Nears Bear Market Low as Ethereum Tests $200 Again ETH/USD, 4-Hour Chart Analysis Ethereum dropped below the key $200 support/resistance level again after last week’s failed rally attempt, and now the coin is once again on sell signals on both time-frames in our trend model. While the second largest coin is well above its bear market low, which is found near $170, but given the strong bearish long-term trend, odds continue to favor a test of that and possibly the $160 support as well. With that in mind, traders and investors should still stay away from the coin ETH, with strong resistance zones ahead near $235 and $260, and with further support found at $180 LTC/USD, 4-Hour Chart Analysis Litecoin is still among the weakest top coins and it’s getting closer and closer to the bear market low near $47, with a breakdown being very likely in the coming weeks. The $44 price level is the next main support, while in the case of a recovery above $51, the next strong resistance zone is found near $56, with another zone above that at $54. EOS/USD, 4-Hour Chart Analysis EOS fell below the key $5.35 support/resistance level amid the broad selloff today, and now it’s on a short-term sell signal again, with the long-term trend clearly being negative. Now, a test of the $5 level seems likely in the coming days, and a break below that could set up a move towards the strong support zone near $4.50. That said, the consolidation period could still continue, and the coin might still avoid a new bear market low, which could point to an ongoing long-term bottoming process. Featured image from Shutterstock Disclaimer: The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins. Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink. Rate this post: Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way. (2 votes, average: 4.50 out of 5)You need to be a registered member to rate this. Loading... Mate Cser 4.7 stars on average, based on 394 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market. Follow @HackedCom Feedback or Requests? Continue Reading Ethereum Price Extends Slide as ETH Mining No Long... Update: Crypto Selloff Deepens as Bitcoin Hits New... Etheera (ETA) Hits the Big Time with 82,960% Growt... Monero Price Analysis: XMR/USD Bulls Eyeing Explos... Bitcoin SV Price Briefly Surpasses Bitcoin ABC Ahe... Crypto Market Dumps $7.5 Billion Overnight; Altcoi... Crypto Update: Selloff Accelerates as Bitcoin Brak... Recent Posts Why Investors Should Pay Attention to Decred November 15, 2018 Why Investors Should be Paying Attention to Substratum November 15, 2018 Market Update: U.S. Stocks Plunge; Carnage in Crypto Land November 14, 2018 Cardano Price Analysis: ADA/USDT Smashes Out of Wedge, but Saved by Critical Demand Zone November 14, 2018 Crypto Market Flash-Dips 12%; Bitcoin Price Hits New Yearly Low as ETH, TRX Bleed Out November 14, 2018 Update: Crypto Selloff Deepens as Bitcoin Hits New Yearly Low November 14, 2018 ICO Analysis: CWEX November 14, 2018 Pre-Market Analysis And Chartbook: Markets Flat Ahead of Key Economic Data November 14, 2018 Ethereum Price Extends Slide as ETH Mining No Longer Profitable November 14, 2018 EOS Update: Preparing for a Big Bullish Move November 14, 2018 A part of CCN Hacked.com is Neutral and Unbiased Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com. Trending Cryptocurrencies6 days ago Why Investors Should Pay Attention to Electroneum Cryptocurrencies1 week ago Why Investors Should Pay Attention to Pundi X Altcoins1 week ago John McAfee Gets Skycoin (SKY) Tattoo; Coin Price Immediately Jumps 12% Cryptocurrencies7 days ago Why Investors Should Pay Attention to Ravencoin (RVN) Opinion1 week ago The Ripple Debate Continues as Coinbase Considers Listing XRP Analysis6 days ago Bitcoin Update: Transition from Depression to Disbelief Altcoins1 week ago Tron Gets Five Fiat Pairs Amid 260% Volume Boost; TRX Price Waiting to Move Altcoins1 week ago Litecoin Price Analysis: $60 and Beyond?