Bitcoin Global News (BGN)
May 3, 2019 -- ADVFN Crypto NewsWire -- Bitcoin miners may
induce another massive bull run in the near future if certain
factors go their way. If you consider the fact that as the Bitcoin
price rises, mining becomes more profitable, it is easy to see why
this could occur.
According to CoinDesk, once Bitcoin
was able to sustain a price of around $5000 for a significant
period of time, mining became somewhat profitable once again. The
keyword here, however, is somewhat. The price of miners has nearly
doubled recently and because of this, the increase in profitability
isn’t perfect. Getting involved in Bitcoin and therefore, Bitcoin
mining is still a highly volatile venture. Even if the price
continues to rise, other factors can always stall it or cause a
significant bear market.
If you’re unfamiliar with what
these are, take a look at measures like the Crypto Fear & Greed
Index, which looks into how much Bitcoin’s price movements are
related to emotional factors. At the same time, consider that what
is commonly called “FUD” is still ever-present in the space. People
tend not to read too far beyond headlines before reacting to what
they think is definite news about certain currencies.
Some, like Anthony Pompliano, have
chalked this phenomenon up to the fact that the crypto market is so
complex, that it is almost impossible for the average person to be
a truly informed participant in it. In other words, to analyze the
market effectively, as Pompliano puts it, one needs to understand a
diverse range of fields, all at once.
Though having a wide of range of
industry news sources can help to lower this barrier, in crypto, it
is often nearly impossible to tell what’s fact and what’s fiction.
Even the most reputable industry publications often cite “insider
sources” or “someone close to the team” as the basis for everything
that they claim to be true on a certain subject.
Until we have more transparency in
the space, just about any piece of news that comes from industry
sources could cause a shift in Bitcoin and really any cryptoasset’s
price. This is why projects like Messari’s industry database have
never been more important. Until most industry players come on
board with such an effort or something similar, bull and bear
markets will continue to be nearly impossible to predict. Mining
will play a major part in both, but it won’t be the only spark in
either case.
By: BGN Editorial Staff