Bitcoin experts expect that 20% of the cryptocurrency exchanges will be hacked by 2020

0
42

The largest Bitcoin (BTC) experienced a sharp drop in prices during 2018, in which the coin has lost 80% of its value since the historical maximum. In a report published Adamant Capital, lists a few key catalysts that could affect the drop rates of the major coins.

The main reason identified in the report, is hacking exchanges or their failures. The report says that experts are concerned about the bitcoin exchanges because they see that about 20% of cripture will be compromised until the summer of 2020

“Despite the fact that the keepers of the cryptocurrency are considered to be less risky, our experts continue to believe that until the summer of 2020, 10-15% of keepers in the industry will suffer from the loss of funds due to hacking”

Source: Adamant Capital

Other reasons for the possible fall in the price of Bitcoins

Another reason was called the macroeconomic downturn. The report indicates that Bitcoin has “relatively” high level of liquidity, which can be used as a substitute for cash, if the markets stock or bond will fall.

The experts noted:

“This could lead to a situation similar to the paradox of 2008 with the decline in gold prices by more than 30%, which coincided with record high demand for coins and bars. We do not believe the financial crisis long-term obstacle to Bitcoin, on the contrary, we believe that BTC has intrinsic value for investors seeking to diversify their portfolios”.

The report also called miners , who are also one of the main catalysts. Mt. Gox, the defunct Bitcoin exchange, which controlled more than 70% of the transaction network, still is in the process of civilian reconstruction. The report shows that a significant part of the funds will be redistributed to creditors of Mt. Gox and selling them can affect the price of BTC.

In conclusion the report stated:

“Finally, regulatory pressure should be attributed to the permanent risk factor, given the destructive nature of Bitcoin”.

If you find a mistake on rucoin.net please highlight the text and press Ctrl+Enter.

Tags: Bitcoin Mt. Gox

LEAVE A REPLY

Please enter your comment!
Please enter your name here

eighteen − four =