There were fears on Sunday that a minor capitulation for Bitcoin price was about to start, when we lost ground at crucial USD 8,000 support but for now, some recovery is underway and Bitcoin is trading once more above that level, thanks to Central Europe trading pushing up prices by just over half a percent.
Price change 1-Hour 0.10% | 1-Day 2.96% | 1-Week 0.43%
10/7/2019 3:11 PM
— Trading Strategist (@TradeStrategyCo) October 7, 2019
BitcoinNews.com technical analysis yesterday also says a clear falling channel is now in play, but the good news is that a maximum low of USD 7,740 is in the picture. So far, the past 24 hours has not invalidated that, with the daily low of USD 7,777 recorded on Sunday night, but price now is on a small upward movement, currently at USD 8,169 and 1:35 pm UTC (CoinDesk).
Bitcoin bulls will want to look for solid fundamental strength in these times, and there will be few better places to start than Blockstream developer Samson Mow. The Chief Strategy Officer has poured water over calls for bigger blocks in the Bitcoin network architecture, insisting that at the current pace of scaling, its current size may even be too big for future use.
The key solution here is second-layer solution Lightning Network, which Mow believes will take most of transaction capacities off chain, requiring less and less capacity on-chain. As we extensively covered here on BitcoinNews.com, Lightning Network is a solution that enables Bitcoin transactions to be settled via channels, with only an opening and closing of the channel requiring a transaction to be recorded on chain on the Bitcoin blockchain.
Bitcoin had already implemented a technology upgrade called Segregated Witness, which essentially made data much more efficient to store on blocks, effectively giving Bitcoin’s 1 MB blocks able the capacity of 4MBs. But Mow now says: “…that the current block size may actually be ‘too big,’”. He reflects also on the criticisms that Lightning Network is too slow in being adopted:
“Lightning has to grow organically, there’s no real way to jumpstart it artificially. People need to open up channels, lock up Bitcoins and start connecting with other nodes.”
But if you need more hard numbers to get your smile going, you should read the report published by German bank Bayerische Landesbank, which predicts that Bitcoin will hit a new all-time high of USD 90,000 by May 2020.
The bank’s research team used a stock-to-flow approach, that determines the “hardness” of an asset by its existing supply relative to production. In the case of Bitcoin, a large existing supply and a limited production make it very hard, to the point that it will soon overtake gold’s ratio of 58.
It can be hard to see how that valuation will happen in only eight months, although the research does note that Bitcoin halving is not at all priced into its forecast. It also does remind us that ultimately, price is only how much people are willing to pay for it.
If all else fails, maybe we can get chocolate to boost our spirits? Some people swear by the therapeutic effects of cocoa on moods, so maybe it’s a wise idea to get your hands on some of The Other Bar chocolate, 20,000 bars of which will be sold in the UK on 14 October. A partnership formed by Amsterdam’s FairChain Foundation and the United Nations Development Programme (UNDP) has created a chocolate that is an “engine of change“, giving consumers a chance to participate themselves in social systems instead of trusting charities to do the right things.
Buying the chocolate also gives you crypto tokens, and FairChain has promised to back each token with funds that would otherwise have been put towards marketing
The hope is that, if successful, the business model will be replicated by others who will redirect marketing funds to social impact, while promising fairer deals to the farmers who plant and harvest the cocoa in Ecuador. FairChain founder Guido van Staveren says:
“If we can show that this proof of impact drives customer loyalty, and marketing spend given to consumers turns into impact, then we can reach out to all these large companies that now spend millions on Kim Kardashian and say, ‘Don’t spend your marketing on these famous faces, spend your marketing dollars on your own crowd, your own customers, and let them invest in impact.”
Chocolate for though? Meanwhile, our eyes turn to the Bitcoin market as North America takes over now. Will we be ending the day with Monday rejuvenations or be on the receiving end of delayed blues? We can only wait and see.
Image Courtesy: Pixabay