TRON’s BitTorrent Token (BTT): Giant Leap Toward Adoption or Cheap Cash Grab?
I don’t need to tell about the advantages of buying BTC/XMR/ETH (of whatever (shitcoin) you like to buy) with cash money (private as the main reason), but I do feel it’s kind of difficult in my region.
Offcourse there are [BITCOIN ATM’s](https://coinatmradar.com) in the area, and one could do multiple transactions on sites like localbitcoins, but are there other alternatives?
Thanks in advantage for thinking with me.
Bitcoin (BTC) has dropped $430 (11 percent) to $3,590, placing it well below the critical $3,900 level. $3,900 has been the level to watch since that was the price of Bitcoin when the December futures contract expired on CME and is likely the level where CME Bitcoin futures traders took out their positions for the month.
Bitcoin (BTC) has faced stiff resistance at the $3,900 level multiple times this month but managed to go above it the past few days after a short squeeze, which was likely caused by Bitfinex temporarily closing down for server migration. Now, however, Bitcoin (BTC) is back below this key level.
This suggests that CME Bitcoin futures traders largely went short for January. A past Crypto.IQ article [details how CME Bitcoin futures expiration dates have a strong connection to Bitcoin’s price behavior](https://cryptoiq.co/an-analysis-of-bitcoin-market-reaction-when-cme-futures-contracts-expire/).
[Image courtesy Bitcoinwisdom.com. Top is Bitcoin price in USD on Bitstamp, bottom is volume in Bitcoins. White line is $3,900 level. ](https://i.redd.it/kz4pz7cb0n921.png)
Although this is the biggest Bitcoin (BTC) price plunge yet of 2019, several other major cryptocurrencies are doing worse and are down more than 15 percent including Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Cardano (ADA), IOTA, EOS, and Monero (XMR).
This breaks a month-long rally for Ethereum (ETH), Tron (TRX), and Litecoin (LTC), which saw gains of 90 percent, 165 percent, and 75 percent respectively before today’s price drop. Ethereum (ETH) had been rallying on speculation regarding the Constantinople hard fork, coming less than a week from now, since the fork will lower the Ethereum inflation rate by slashing block rewards from three ETH to two ETH. There will also be several new features implemented such as better developer tools and lower transaction fees.
The slashing of block rewards and [the decision to implement ProgPoW](https://www.ethnews.com/despite-core-dev-agreement-to-move-forward-with-progpow-dissent-continues) which makes ASICs far less efficient may cause a battle between Ethereum miners and developers. [Crypto.IQ speculated](https://cryptoiq.co/ethereums-hard-fork-could-send-ethereum-below-50/) that the Ethereum (ETH) Constantinople fork could result in similar tension to the Bitcoin Cash (BCH) fork in November 2018.
If this prediction is accurate, a crash in Ethereum’s (ETH) price may ensue. Perhaps the amplified Ethereum (ETH) price drop overnight is due to uncertainty about what will happen when the Constantinople fork launches in less than a week.
Notably, Ripple (XRP) [has now taken the number two spot on CoinMarketCap](https://coinmarketcap.com/) since Ripple (XRP) is “only” down 10 percent today while Ethereum (ETH) is down 15 percent.
Dogecoin (DOGE) has shown resilience today and is only down seven percent. It has been observed that Dogecoin (DOGE) is less severely impacted by broad price drops in the crypto-space. This is possibly due to Dogecoin (DOGE) having a strong community and simultaneously not being a common choice for speculators.
Many more cryptocurrencies than those mentioned in this analysis are down 10 percent or more, and $15.5 billion (11.2 percent) was slashed from the total crypto market cap overnight. Currently, the [total crypto market cap](https://coinmarketcap.com/charts/) is $123 billion, which is still well above the bear market low of $100 billion that we saw during mid-December 2018 when Bitcoin (BTC) hit $3,120 on Bitstamp.
It is too soon to say a bottom is in for the crypto market, and if short sellers on CME really are in control this month, as data suggests, then it is possible Bitcoin (BTC) will decline further this month. A re-testing of bear market lows near $3,100 is not out of the question.
Bitmain is the largest manufacturer of cryptocurrency mining equipment in the world, and it has been taking the brunt of the mining downturn associated with the continuing bear market.
Two weeks ago, [Bitmain announced it would be firing more than half of its 3,000 employees](https://cryptoiq.co/bitcoin-mining-industry-contracting-bitmain-firing-more-than-half-its-workforce-gmo-internet-shuts-down-mining-division/). Now, it has been revealed that the co-founders of Bitmain, Jihan Wu and Micree Zhan, are stepping down, [and it appears Wang Haichao will be the new CEO](https://www.scmp.com/tech/policy/article/2181392/bitmains-two-founders-step-aside-chinese-cryptocurrency-giant-taps).
Wu and Zhan will stay on as co-chairs, meaning they will stop being involved in day-to-day activities, but major decisions will have to be approved by them. This unexpected shift in power is perhaps the result of the triple failure of the Bitmain IPO not happening, Bitmain’s investment into Bitcoin Cash (BCH) turning into a big bust, and the overall crash in the crypto mining industry, which has caused sales of Bitmain’s mining equipment to dry up.
Bitcoin’s (BTC) hash rate peaked near 60 EH/s in August, September, and October 2018, [before rapidly declining to as low as 32 EH/s in December](https://www.blockchain.com/en/charts/hash-rate). This indicates that up to half of all Bitcoin mining rigs were shut off at a point due to lack of profitability, which further suggests that cryptocurrency mining rig manufacturers like Bitmain probably saw their sales dry up and were stuck with huge inventories of rigs they could not sell. Essentially, the very lifeblood of Bitmain has been cut off.
It gets worse. Bitmain dumped most of its Bitcoin (BTC) to buy Bitcoin Cash (BCH) and had amassed [over one million Bitcoin Cash (BCH) by the end of March 2018](https://www.ccn.com/bitmain-is-hodling-nearly-600-million-in-bitcoin-cash/). On New Years Day 2018, Bitmain already had 842,000 Bitcoin Cash (BCH) [when Bitcoin Cash’s price was $2,500](https://coinmarketcap.com/currencies/bitcoin-cash/), corresponding to a total investment of $2.1 billion.
Since Jihan Wu was an avid supporter of Bitcoin Cash (BCH) during the fork in November 2018, it’s possible that Bitmain held onto their stake in Bitcoin Cash (BCH) all the way through the fork, which would mean they have lost $2 billion. The potential losses from Bitmain’s Bitcoin Cash (BCH) investment [far exceed the $952 million profit reported in 2017](https://bitcoinnews.com/bitmain-files-for-ipo-publishes-profits-business-structure/), which was probably by far their best year.
Bitmain received at least $400 million of “pre-IPO” investments in 2018, and this cash and all of their previous profits appears to have been burned through, considering that they are laying off over half of their employees, entire divisions are being shut down, and now the CEOs are stepping down. This was likely precipitated by sales drying up and the catastrophic Bitcoin Cash (BCH) investment failure. Now it appears [there will be no IPO](https://bitcoinnews.com/bitmain-ipo-faces-roadblock-as-hong-kong-declares-blockchain-industry-still-immature/) according to an announcement by Hong Kong regulators, which is no surprise considering Bitmain’s dire straits.
It is no surprise that Bitmain is opting to change its leadership as seen with the stepdown of Wu and Zhan. Bitmain started as a massive crypto success story under their leadership, but clearly, Bitmain’s strategy in 2018 has nearly destroyed the company.