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Bitcoin Price Watch: Currency Now at $7,400

So, the father of crypto has dropped a bit. At press time, bitcoin is down by roughly $100 and is now at $7,400. This is not a big deal, however, and granted bitcoin can stay above the $7,000 line, enthusiasts and traders likely have nothing to worry about.

Indeed, the currency has come a long way over the past few weeks. Early this month, the coin dropped to the $5,800 mark, causing widespread panic and fear amongst most enthusiasts, and several found themselves wondering about the future of the coin. Could it regain its position on the financial ladder, or would it sink into oblivion?

BTCUSD: Bitcoin: current Fibonacci levels

The currency ultimately proved itself capable of surpassing all blockades and working its way back up, jumping nearly $2,000 in price over the course of just a few weeks. Bitcoin rose back up to $6,300, followed by $6,800, and then $7,200. $7,400 and $7,500 came only a few days later.

Bitcoin has obviously shown itself to be resourceful and strong in the past. It has overcome larger obstacles and has moved beyond what anyone could have potentially imagined, as it did last December when it struck $20,000. However, we cannot forget that bitcoin remains a vulnerable entity. Volatility runs rampant through this arena, and many coins run the risk of dropping without warning.

Ethereum, for example, has risen to $501 in recent days, but was trading for $453 as early as yesterday afternoon. It’s unfortunate, as many continue to praise Ethereum as the truest form of digital currency, placing it above even bitcoin in terms of its technicality.

Bitcoin remains the number one cryptocurrency primarily because of its market cap and widespread adoption in comparison to other coins, but several analysts claim its blockchain leaves a lot to be desired, and its high fees and slow transaction speeds can get in the way of the currency’s nature.

However, we cannot overlook bitcoin completely in the process. While there may be other coins that have mastered certain areas, bitcoin is still sturdy. According one Forbes contributor, bitcoin is still heavily undervalued at its current price. We are directed to examine the currency’s supply and demand factors, which would likely place it at around $8,605 at the minimum. This means that bitcoin, while technically on the rise, still has a way to go, and is over $1,000 below its “normal” position.

Naturally, this is based off one person’s findings, and enthusiasts are advised to take any new predictions with a grain of salt, but we can see that bitcoin still has plenty of room to grow, and granted we have the patience, the currency can deliver everything it was designed to bring.

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Is Demand For Bitcoin Mining in Decline? Chip Maker Slashes Target

Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest dedicated independent chipmaker, has predicted a drop in demand from the cryptocurrency mining community in the fourth quarter this year. The growth target of 7 to 9 percent was slashed to 6.5 percent partly due to the demand dynamics of bitcoin miners. Crypto Mining Demand For TSMC Chips to Weaken Further In Q4 2018, Says CEO C. C. Wei, Chief Executive Officer and Vice Chairman of TSMC told investors at the company’s third quarter 2018 earnings conference that business growth would be offset by “continued weakness in cryptocurrency mining demand”. “Moving into fourth quarter, despite the current market uncertainties, our business will benefit from the continuous steep ramp of7-nanometer for several high-end smartphones as well as the demand for 16/12-nanometer for the launches of new-generation GPU andAI. However, this growth will be partially offset by continued weakness in cryptocurrency mining demand and inventory management byour customers.” The company forecasts growth between 5 and 7 percent for the overall semiconductor market excluding memory, while foundry is expected to grow between 6% and 7%. Weakening demand from cryptocurrency miners has forced the firm to adjust the growth estimate to 6.5 percent in U.S. dollar terms, according to the chief executive. “However, our business is also negatively impacted by further weakening of cryptocurrency mining demand. As a result, we estimate our 2018 growth rate will be about 6.5% in U.S. dollar term, which is close to the foundry industry’s growth but slightly below our 7% to 9% guidance given in the last conference.” The downshift in mining profits is the main responsible for the company’s revision of its full-year sales target, citing uncertainty in the cryptocurrency market as its reason. In April, the Taiwan Semiconductor Manufacturing Company lowered its 2018 revenue guidance to 10% growth from 10-15%, estimating that about 10% of the Asian chipmaker’s revenue depends on cryptocurrency mining demand. Moreover, the entrance of Samsung in the global cryptocurrency mining sector could be providing TSMC their first real competitor in the sector, which in turn, may eventually push the company to lower its sales targets in years to come. Samsung has started the production phase of bitcoin and cryptocurrency mining equipment and ASIC mining chips earlier this year. The company intended to manufacture GPU miners for miners targeting small cryptocurrencies in the upcoming months. President Trump’s trade tariffs, on the other hand, may hurt future trade volumes of Chinese companies producing cryptocurrency mining hardware. This may eventually benefit TSMC as competitors from the People’s Republic of China will have a hard time in the race for the U.S. market. The post Is Demand For Bitcoin Mining in Decline? Chip Maker Slashes Target appeared first on NewsBTC.

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