Global Bitcoin’s Price Crashes, China's Miners Throwing Coins Main Cause

In the daily production of 3600 Bitcoin, about half of which were poached by Chinese "miners", therefore, the behavior of Chinese miners bitcoin-throw affects the global Bitcoin’s price.

Data shows Bitcoin price fell from 4,000 yuan to 3,000 yuan cost three months, but drop below 2,000 yuan only in a month. BTCChina vice president Lingkang , when interviewed by the <>, says “bitcoin’s price drop below 2,000 yuan is beyond my expectation, and it may can’t rule out further declines in the short term. Further, the cost of a BTC is 2500~3000 yuan, so the price must be under-valued, I believe it will rise in the long term’’.

Lingkang claims that reduction in demand reduces fund inflows of Bitcoin trading platforms. Meanwhile, due to the special nature of Bitcoin generated, 3600 new bitcoins daily fixed produce globally, this situation will not change with demands or any appropriate adjustments will be made, as a result, the oversupply down the price of Bitcoin. Besides, "miners" has to throw lots of coins below the mining cost in order to maintain normal operation, then causing the bitcoin’s price constant fall.

Insider points out that some at home and abroad Bitcoin trading platforms have launched a leveraged transaction rules since the beginning of this year, 3 times is the most common, which up the risk of account- blow. Lingkang also thinks bitcoin market has difficulty to stand its own feet when bitcoin short strength increases because of fund decline. At the same time, dollar strength also has certain influence on bitcoin market liquidity.

The constant fall of bitcoin’s price raises investor concerns, which also test the confidence of seasoned bitcoin players, if these players gradually leave, Bitcoin’s price will fall further. What’s more, due to the bitcoin usage limitation, plus lack of the market liquidity, because bitcoin holders are some bitcoin players and the bankers, once a very negative news happens, the situation of panic or crash will occur.

"In the short term, unless there’ll exist very good news, otherwise the price of bitcoin is hard to surge. But its value is much higher than the current level in the long run.’’ Lingkang adds.

Original Author: Xue Jiao
Translated by Bitell


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