Nov 29,  · Bitcoin hits $10, but are whales ready to give the market a haircut? Nov 29,  · Bitcoin hits $10, but are whales ready to give the market a haircut?Author: Jessica Sier.

Bitcoin-hits-10000-but-are-whales-ready-to-give-the-market-a-haircut

Australian Financial Review

Whereas if billions of commercial transactions were to begin taking place and the blockchain became infinitely more dynamic, the verification pipeline is likely to become clogged. Indeed, bitcoin developers are still debating scaling solutions for mainstream adoption particularly with respect to how much energy is needed to power the verification network. For example, the mining of bitcoins this year has consumed more energy than the average electricity consumed annually by nations, according to Digiconomist.

The same research showed energy consumption had increased 20 per cent in the last month alone and should it continue at this rate bitcoin mining will consume all of the world's available electricity by February There are Of those in circulation, about 37 per cent have been spent or traded in the past year, while some 22 per cent are being held by "strategic investors", and most of the rest have been lost.

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Updated Nov 29, — 4. The whale song But long-term watchers are warning there are some bitcoin holdings that are so large — worth hundreds millions of dollars — that they have been known to emerge at times of peak-exuberance sending dramatic shocks through the markets to wipe out smaller holders who have taken on too much risk.

CoinDesk "We've seen it time and time again, where these big whales think it's time to give the market a haircut and they move a couple of thousand of bitcoin.

Jessica Sier writes the TechKnowledge column. Connect with Jessica on Twitter. License article. The 'real' Santa Claus rally begins. US stocks edge higher in shortened session. Sell sterling on rallies: TD's advice. Tech stocks could rally another 25pc in Wedbush. Five of the best Tasmanian sparkling wines. Mixed scorecard for champions of change Sally Patten.

We're talking to hedge funds, self-managed super funds, the next wave of investors. The blockchain was groaning under billions of trades, though largely only "buy" orders as speculative punters bet on Bitcoin's continued rise. Mainstream interest was well and truly piqued, and headlines around the world broadcast people swapping houses for cryptocurrency and chatrooms exploded as more Aussie dollars, euros, greenbacks and yen were swapped for bitcoin than ever before.

But long-term watchers are warning there are some bitcoin holdings that are so large — worth hundreds millions of dollars — that they have been known to emerge at times of peak-exuberance sending dramatic shocks through the markets to wipe out smaller holders who have taken on too much risk. That's enough to melt the exchanges and these new guys will be left extremely, extremely panicked.

Whale traders can spook an overheated market by selling a moderately large block of the assets below the market rate. This generally causes a panic sell-off by small-time traders, who flood the exchanges with sell orders. The whale then waits and scoops up the assets when they've reached a satisfactory low.

The practice is often known as "shaking out weak hands". Earlier last month, several extremely large bitcoin holders swapped their large holdings of bitcoins for bitcoin cash — an alternative crypto-asset developed for faster transactions. This does look like irrational exuberance. While there is hysterical chatter above, bitcoin miners seem to be comfortably managing the extreme bitcoin demand with the average transaction time around 8.

Not too dissimilar to the rates at the beginning of the year, given how many new mining participants have come online. But given most people are buying and holding cryptocurrency at present, this is not as demanding on a blockchain. Whereas if billions of commercial transactions were to begin taking place and the blockchain became infinitely more dynamic, the verification pipeline is likely to become clogged.

Indeed, bitcoin developers are still debating scaling solutions for mainstream adoption particularly with respect to how much energy is needed to power the verification network. For example, the mining of bitcoins this year has consumed more energy than the average electricity consumed annually by nations, according to Digiconomist. The same research showed energy consumption had increased 20 per cent in the last month alone and should it continue at this rate bitcoin mining will consume all of the world's available electricity by February There are Of those in circulation, about 37 per cent have been spent or traded in the past year, while some 22 per cent are being held by "strategic investors", and most of the rest have been lost.

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Bitcoin hits $10,000 but are whales ready to give the market a haircut? The whale song

Nov 29,  · Bitcoin hits $10, but are whales ready to give the market a haircut? Nov 29,  · Bitcoin hits $10, but are whales ready to give the market a haircut?Author: Jessica Sier. Tags:Deposito bitcoin neteller, Bitcoin non profit, Btc markets referral program, Btc quantitative trading, Btc profit this morning

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