Bitcoin and other  Cryptocurrencies  Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. Read this Term plummeted once again this week. Bitcoin has dropped through the $6000 level, fell to a one year low, and almost touched the $4500 barrier. What is a worry for bitcoin and altcoin holders, is a great opportunity for CFD traders that can take short positions.

Make sure you have your trading accounts ready when huge price swings come. If it comes on November 22-23, you can trade with SimpleFX WebTrader with -50% spread on each transaction with no limits!

On Sunday and Monday, November 18-19 digital coin market capitalization fell by more than $14 billion. On Monday morning (UCT) Bitcoin fell sharply reaching the lowest point in over a year.

The leading cryptocurrency almost touched the psychological barrier of $5000. Major altcoins - Ethereum, XRP, Bitcoin, and Litecoin followed. Bloomberg Galaxy Crypto Index dropped by almost 7 percent to a one year low, too.

Before the mid-November, it seemed that the $6,000 level for Bitcoin is a hard barrier. The bulls defended it for over half a year. As you can see the price dropped below the barrier and the market started testing the next $4500 wall.

Analyst comment that finally the volatility may have returned to the cryptocurrency market. The recent sell-off was probably caused by two events. First is the growing concern about the bull market last. As you can see on the 1-day Nasdaq 100 Index chart below, the stock market is falling since the beginning of October.

Second is the uncertainty and division among the cryptocurrency leaders and developers. Last weeks’ Bitcoin Cash hard fork may have caused some of the stir. The network divided after rival software-development groups failed to reach an agreement on how to improve the altcoin. That led to a kind of cold war with computing power, instead of nuclear power, arms race.

BCH division and controversy

Since it’s creating, which came as an effect of a feud between original Bitcoin factions, Bitcoin Cash was supposed to perform a scheduled protocol upgrade twice a year. It was always assumed to be a hard fork, that is a protocol change where the nodes running previous versions will no longer work with the new version nodes.

The newest hard fork was supposed to happen on November 15 but was sabotaged by competing groups. As a result, BCH split into three factions - a conservative Bitcoin ABC led by Roger Ver that believes BCH worked well, a progressive Bitcoin SV led by Craig Wright, who had declared himself as BTC creator  Satoshi Nakamoto  Satoshi Nakamoto “Satoshi Nakamoto” is the alias of the mysterious person (or group of people) that are responsible for the creation and launch of Bitcoin back in 2009 and the authorship of the Bitcoin whitepaper, published in 2008. As such, Satoshi Nakamoto is also the entity who conceptualized and created the first-ever blockchain network. Nakamoto was the first to effectively solve the double-spending problem for digital currency using a Peer-to-Peer (P2P) network. Nakamoto was active in the development of bitcoin up until December 2010, making all modifications to the source code himself. In 2010, he handed over control of the source code repository and network alert key to Gavin Andresen, and transferred several related domains to various prominent members of the bitcoin community.Who is Satoshi Nakamoto?While Nakamoto claimed on his P2P Foundation profile in 2012 that he was a 37-year-old man from Japan, others speculated that he was from an English-speaking country due to his use of perfect English and the fact that none of his work was documented or labelled in Japanese. Analyses of Nakamoto’s post suggest that his sleeping patterns were most similar to those of people living in the UK, and his use of British English in spelling and terminology have led many to believe that Nakamoto is actually of British origin.Several years after the publication of the Bitcoin network, the entity posting under the name Satoshi Nakamoto disappeared from the internet, never known to publish anything under that name again. However, a few bold actors have claimed to be Nakamoto. There has been much speculation about whether any of these claims could be true. Ultimately, the real-world identity of Satoshi has never been established and remains a mystery to this day. “Satoshi Nakamoto” is the alias of the mysterious person (or group of people) that are responsible for the creation and launch of Bitcoin back in 2009 and the authorship of the Bitcoin whitepaper, published in 2008. As such, Satoshi Nakamoto is also the entity who conceptualized and created the first-ever blockchain network. Nakamoto was the first to effectively solve the double-spending problem for digital currency using a Peer-to-Peer (P2P) network. Nakamoto was active in the development of bitcoin up until December 2010, making all modifications to the source code himself. In 2010, he handed over control of the source code repository and network alert key to Gavin Andresen, and transferred several related domains to various prominent members of the bitcoin community.Who is Satoshi Nakamoto?While Nakamoto claimed on his P2P Foundation profile in 2012 that he was a 37-year-old man from Japan, others speculated that he was from an English-speaking country due to his use of perfect English and the fact that none of his work was documented or labelled in Japanese. Analyses of Nakamoto’s post suggest that his sleeping patterns were most similar to those of people living in the UK, and his use of British English in spelling and terminology have led many to believe that Nakamoto is actually of British origin.Several years after the publication of the Bitcoin network, the entity posting under the name Satoshi Nakamoto disappeared from the internet, never known to publish anything under that name again. However, a few bold actors have claimed to be Nakamoto. There has been much speculation about whether any of these claims could be true. Ultimately, the real-world identity of Satoshi has never been established and remains a mystery to this day. Read this Term, and a neutral consolatory fraction Bitcoin Unlimited.

Get your CFD account ready for the stormy crypto forecasts

At the moment the most aggressive crypto bulls are reviewing their forecasts. A managing partner at Fundstrat Global Advisors Thomas J. Lee cut his BTCUSD target for the end of 2018 from $25,000 to $15,000. His explanation is quite clear: “Crypto-specific events have led to greater uncertainty in the crypto market, including the contentious hard fork for Bitcoin Cash,” said Lee quoted by Bloomberg.

An influential crypto trader Hsaka commented on Twitter: “$BTC Update. Could be forming a nifty little range here. Swept shortstops and tested range bottom. Swept long stops. Now if price can reclaim the zone around $5,400, a retest of $5,600s looks likely.”

Make sure you make the most of the possible price swing coming. Deposit some money on your crypto CFD trading accounts. SimpleFX WebTrader app designed for mobile is a perfect solution for reactive trading.

It offers free multicurrency accounts, including Bitcoin, Bitcoin Cash, Dash, Litecoin, Ethereum, and no minimum deposits. Give it a try now, and make sure you keep SimpleFX WebTrader in your pocket when you learn about next steep crypto price moves.

There’s one more reason to trade with SimpleFX in the next days. On November 22-23 the broker launches an amazing Black Friday promo, cutting the spread on each transaction by half. It’s a total, unlimited 50% discount for every trade you make! Go to SimpleFX WebTrader for more details.

Disclaimer: The content of this article is sponsored and does not represent the opinions of Finance Magnates.