The current state of the market, which has been dubbed «the cryptocurrency of the winter,» causing of a considerable number of investors two questions: «Who is to blame?» and «What to do». According to analyst Phillip Nunn, if you recently saw the price of bitcoin at $3500, you shouldn’t complain about why it’s so low, and I wonder whether ever in the history of cryptocurrency such a situation, so that it can be bought for little money? Crypto-enthusiast, Bobby Lee, brother of Tom Lee, founder of Fundstrat Global Advisors, this drew attention to the fact that buying cryptocurrencies in this market is not easy, as it is easy to feel «black sheep» when most of the sprinkles ashes on the head and sells kryptonite. All this is a reasonable assertion, but whether they take heed of the current and potential investors in cryptocurrency?
The negativity in the media «crushed» bitcoin
Upon review of bitcoin shows enviable zero correlation with many market settings, however, the impact of media publications on investor sentiment can hardly be overestimated.
Thus, the company Clovr summarized research articles about cryptocurrencies that are coming out in 2013 and the beginning of autumn. Just the focus of attention was 7500 publications. It turned out that for three consecutive years, until the beginning of 2017, positive publications about the cryptocurrency was more than neutral or negative. However, in the first months of last year began a gradual «colouring» of most of the articles in a neutral color, and when cryptocurrencies went to historical highs, «black paint» of negativity began to take more and more place. In the future, the decline of crypto-currencies was accompanied by an increase in such negative light.
Classical financial world is ready for its disappearance
What does it mean? If a long time has been positive, even in classic media, then it has changed to negative. It is possible for the reason that to the world of traditional Finance came to understand that cryptocurrency is not just transforming the force, and disruptive, that is not «transformative», and «destroying» the principles of classical Finance.
What it is, a recent study sentiment in the banking environment in Belgium — a key European Finance for the country. It was found that 62% of bankers believe that the banks in the near future, may simply disappear as unnecessary, and the whole range of financial services will move on a decentralized platform. This kind of research are hardly ever on the pages of leading business Newspapers and magazines of the world, even despite the fact that in this case, for example, it stands for influential national Bank of Belgium.
Society is set up for cryptocurrency, but not necessarily bitcoin
Meanwhile, various polls show that the global community has matured a huge demand for change that are expected from classic financial markets. Generation Z, that is, those who are now no more than 22 years, most clearly demonstrates his rejection of working with traditional financial institutions, including banks with their Bank cards.
However, such sentiments have increasingly become mainstream, even if the key business publications in the world, «not notice» this. A large survey in the Twitter account of former US Senator Ron Paul participated 94,894 person, of which only 2% have declared that are ready to accept US dollars as an investment against the present 50% in favour of bitcoins as a symbol of crypto-currencies (other cryptomonad option was not offered). Analyst Ren Neuner, conducted a similar survey, but adding different cryptomonad, received responses from 15,816 people, 93% of whom chose to have any cryptocurrency, for example, than bonus miles to save when you travel. Interestingly, in the study by Neuner and in the ensuing polls in Twitter account businessman Wolfman, Cryptojabroni and Analytics eToro’s Mati Greenspan, bitcoin is in competition with other cryptomelane lost «the palm».
All this also reflects the pessimism that spread in the traditional media, which are the primary target of their negativity chose the oldest cryptomonad. Noteworthy is that with the thin justification for the possible «death» of bitcoin in the face of competition with other cryptomelane are even members of the cryptocurrency community, in particular, Samuel Leach.
Pessimism about bitcoin is not justified
It is not surprising that against this background measurement of public opinion showed that 74% of respondents do not believe that bitcoin to the end of the year can exceed $8000. It is important to note that this survey collected a large number of representatives of the cryptocurrency community, and yet the pessimism is obvious. What can we say about the poll in Twitter account Charlie Bilello, Director of research company of new York Pension Partners: 86% of 3358 respondents believe that in the next 12 months bitcoin will not be able to rise above the level of $4200.
The survey was conducted on November 21, and bitcoin then was able to reach the level of nearly $4500, that is, the majority of subscribers Billelo, among which a significant number of his colleagues are professional managers of investment portfolios have been mistaken.
Massive buying of cryptocurrency in real time is a reality
For a small number of market players, especially whales, it is clear that currently there is a great opportunity to buy more cryptocurrencies before they again rose: here we see that the largest investors are now record-increased investments, e.g. Ethereum. A large amount of savings amount of cryptocoins seen on Litecoin-wallet. But about bitcoin do not have such information. The impression is that the cryptocurrency No. 1 betrayed, and «drowning» not only traditional financial institutions, but also, apparently, some members of the cryptocurrency community, seeing it as an unnecessary competitor.
False modesty due to the growth of bitcoin prices in December 2017
In addition, instead of closing ranks, we see that members of the cryptocurrency community begin to «repent» that bitcoin is strongly rose in price in December of last year, laying the foundations for doubt that this crypto currency could grow «naturally».
This is evidenced by Michael Casey from mit, and analyst Jill Carson who claim that in the past year, interest in bitcoin was purely speculative. Meanwhile, there is nothing speculative to expect that the asset that has the perfect formula of limited supply in the market, can not simply increase in price, and to demonstrate the permanent, long-term trend growth, and shows that bitcoin, despite the current downward correction.
USA «offended» for cryptocurrencies, which cancel the sanctions
Only the speculative motive may explain the reluctance to invest in bitcoin when it costs so cheap attractive in this refusal it is difficult not to suspect an attempt to derail the price of the cryptocurrency even lower. It is no coincidence that the authors of the petition on sapced «to stop the fall of bitcoin» indicate as the addressee the U.S. regulators: fed, SEC and CFTC.
Although the pressure source to crypto currencies should not even look there, and the Office for foreign assets control (JFAC) is a division of the U.S. Treasury, which is responsible for the development of sanctions. There is a clear line: at a meeting held on 30 November−1 December the G20 summit, it was decided to adhere to regarding the regulation of cryptocurrencies of the recommendations of FATF, which deals with combating crimes in financial sphere on the global level. Meanwhile, the head of the FATF, Marshall Billingsley, who served as Deputy head of OFAC, in October called on all G20 countries to urgently «to regulate» the cryptocurrency, offering simply to ban them, if «undetectable by any risk.» And the main «risk», which revealed, is that the existence of cryptocurrencies negates U.S. financial sanctions that became apparent with the failure of attempts to block the work of two bitcoin addresses, which are associated with Iran, which fell under the American economic limitations. It is clear that the cryptocurrency community should be opposed to the actions of the US authorities, which are aimed at the infringement of the bitcoin is determined by political motives.
The image of the cryptocurrency’s most important
Bringing objective and positive information to users of news agencies and readers of traditional media, including the Internet, is what is called «public relations». But who will do it on a regular basis in the case of bitcoin? It is obvious that such operation is necessary, and the decentralized nature of the cryptocurrency doesn’t excuse what is essentially targeting with traditional media is not conducted.
What do the owners of large fortunes in bitcoins? 20 Aug brothers-billionaires the Winklevoss founded the Association of virtual goods, however, its main goal is the creation of industry standards. There is also no emphasis on working with the media and the General public are among the goals established for the Association markets digital assets. However, what is more important? In the report of the WTO on the blockchain and cryptocurrency alleges that the main thing for cryptocurrency infrastructure development, and this requires investment. Partner Morgan Creek Capital Anthony Pompliano also supports this point of view, considering that it is even more important than «buying cryptocurrency on centralized exchanges». However, not everyone agrees with this opinion. So, one of the Ethereum founders, Joseph Lubin, I’m sure it’s about the people and not technical solutions.
But still we can say that the main thing is a delicious message, which is very important for any product or service that claims to be global, and cryptocurrency is that such assets, the message will no longer be able to ignore traditional media. Improving the efficiency of transactions using cryptocurrency is worth billions of dollars that saved the remittances of migrants. It is also a charity that gets an amazing boost with cryptomonas. All are small examples of something that would have to write for traditional media.
Cryptocurrency as a way of addressing world problems: step-by-step solution to retirement planning
Joseph Lubin is confident that crypto-currencies solve the problem of «world-class». So why do whales not to do in order to promote cryptocurrency solution to the global problem of pension provision, which applies to many countries, from the United States and Canada, ending with France and Russia? In Russia now there is a $461.8 billion in reserves. A considerable part of them is kept in US dollars, in which case the Issuer in its recent first report on financial stability explicitly warned the U.S. currency may start to roll downhill together with other assets.
Capitalization of all bitcoins now exceeds $69 billion. Enough to invest $10 billion to set up, first, by 2020, to bring the level of Russia’s international reserves to $1 trillion. And secondly, to set a new trend addressing the issue of improving the welfare of pensioners in the world, because the more countries will develop their pension plans on the basis of the investment in bitcoins, the more will go up this limited in the amount of the asset.
It all seems someone unlikely, however, that the country which first invest their reserves in bitcoins, will be able to provide its population the maximum benefit. Will it be Russia, USA or France, only time will tell, however, that this development is irreversible, is obvious.