Bitcoin news for today: Bitcoin as the winner of the US election, stepping up
There is uncertainty about the outcome of the US election. The situation where Joe Biden’s eventual victory is narrow and Republicans dominate the Senate is favorable to financial markets. This according to CNN. Cryptocurrencies would also benefit from it, as Bitcoin News for Today show.
Bitcoin strengthened by 10% a day. On Thursday afternoon, it reached $15,200 USD. Bitcoin has thus been traded at its highest level since January 2018. However, the pandemic and generally higher investor interest also contribute to the interest in bitcoins, the Bloomberg agency noted. Some investors expect cryptocurrency prices to continue rising. Fundstrat Global Advisors LLC analyst Rob Sluymer says that a new level of price resistance could cost Bitcoin $20,000 USD.
Bitcoin news for today also show benefits from significant investments from companies such as Square and Paul Tudor Jones. According to currency proponents, Bitcoin can be a diversifier in times of uncertainty. That would increase the portfolio diversity. Certain factors are helping to increase its growth. Such as the current closure of European countries due to a pandemic or the delay in the US election.
But, as Bloomberg points out, the world of cryptocurrencies is very unstable. In 2017, bitcoin rose sharply to a record $20,000, dropping to $3,000 less than a year later. Therefore, many analysts and investors are rather skeptical about cryptocurrencies.
The price of bitcoin is becoming increasingly unusable for payment
Bitcoin news for today can point out that the rate of the most common cryptocurrency has strengthened significantly. At least during recent weeks. However, the growing interest in bitcoin has a negative effect on its use as a means of payment.
Bitcoin is accompanied by the same problems that its users faced significantly at the turn of 2017 and 2018. More recently, the same happened to the holders of Ether. The growing interest in the digital currency is also reflected in rising transaction fees. For bitcoin payment processing, users currently have to pay transaction fees in orders of $7 or more. According to the Ycharts portal, the average transaction fee is almost $12. This is the highest value since the end of 2017. The median is then $3 lower, according to the Bitcoinfees server. In practice, however, you can save significantly on fees.
For example, the pre-written Trezor hardware wallet allowed bitcoin to be sent with confirmation within 20 minutes for about $4. Those who have no problem waiting for the final confirmation of payment will save even more. If You would like to know more about TREZOR Wallet, read our article about how this particular wallet works.
A sharp increase in transaction fees is typical for cryptocurrencies at a time of incipient or advanced investment mania. This is partly because some speculators are trying to get their digital coins on the cryptocurrency exchange as quickly as possible. That is, at the cost of burnt fees, so that they can sell them profitably.
According to the Coindesk portal, the temporary clogging of the Bitcoin network is also due to a temporary decline in its performance. This is caused by the failure of Chinese miners. Miners, by their very nature, provide the necessary computer power for the smooth operation of the bitcoin payment system.
A relatively small proportion of bitcoin owners do not have to bother with expensive payments at all. However, only if they use digital wallets supporting a relatively new technological solution called Lightning Network.
This is a special secondary layer deployed on a bitcoin network. The goal of this solution is to radically reduce the price of cryptocurrency. This makes fees shrink from a few dollars to a few pennies. Such conveniences are supported, for example, by Phoenix or BlueWallet wallets.