We tried to stay away, but like COVID-19 itself we just couldn't help but share something.
The CDC has a very healthy website on protecting yourself and your loved ones (and all of us who aren't sick) from the recent virus confusingly named similarly to America's favourite non-American beer. At Change, we're working from our home offices, continuing to wash our hands, and ensuring that we "bump elbows" instead of shake hands. We're as contactless as our debit card.
We hope you're feeling tip-top and are ready for some riveting market action in the coming weeks!
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We could all use some good news as we're nestled inside our homes tuning into the international COVID-19 craze and hoarding toilet paper (for some unknown reason). Today, we find that news in Italy as the Italian Red Cross and Colli Albani Committee are teaming up with Helperbit, an app designed to make blockchain a fast, easy, and intuitive fundraising tool.
When they started the campaign there were over 20,000 confirmed cases of the virus commonly referred to as corona; the death toll had reached nearly 2,000. The fundraiser's goal was simple, using Bitcoin and Altcoin donations the Red Cross in Italy wanted to set-up a Second Level Advanced Medical Post for pre-triage of COVID-19 cases.
On the 17th, 2.8788 BTC had been donated of the desired 5.03 requested in the campaign. You can make a donation from your Change account if you see fit! We'll be looking for ways to make a difference as the situation continues to unfold throughout the EU and the word.
Greenidge came into view last week as a natural gas power plant that was performing its own crypto-mining, utilising a shocking 11 megawatts of power from its 106 megawatt daily output facility. They were making a rough $50k per day before the recent market drops.
Now? Cointelegraph reports residents and businesses in Washington that are doing their own mining began seeing price-hikes from Grant County Public Utility District No.2 - the electricity bill for these miners is skyrocketing as crypto is taking that rollercoaster ride down South for a bit.
The issue? Grant County electric had begun charging miners more than normal residents and created a different fee schedule for the private and public miners who more than doubled the district’s previous annual output of roughly 600 megawatts in 2017 to around 1,500 each year since. Crypto-mining uses a large amount of power and Grant County was offering some of the cheapest power out there at $9.56 per kilowatt hour when operating individually and even less as a business.
Well, one of those persons and five businesses joined forces to bring a lawsuit against Grant County for unjust action, but the judge overseeing the case claimed there was no obviously unjust breach of power that violated the Federal Power Act. The only thing that ended up getting charged was the new electric bill.
We received some great questions from our customers and, as our Chief Technical Officer, I wanted to speak for a moment regarding app downtimes, outages, and what we’re doing to stop them.
1. Why did the last 30-minute outage happen? A massive and unexpected movement brought an extremely large spike in our volume. Unfortunately we weren’t prepared to handle it at that time.
2. How are we preventing the next outage? To increase our capacity we have upgraded our RDS databases and servers to handle increased capacity during these market swings.
3. Will an outage happen again? We are doing all we can to prevent anything from happening in the future, but do not plan to see outages like this again. We were able to resolve this one within 30-minutes.
4. Is Change secure? We are as secure as can be. Your funds are managed by BitGo which means they're insured as with any large exchange. Outages like this do not affect your personal information, secure storage of funds, or data in any way.
In light of other crypto investment apps having issues with unexpected downtime, we wanted to ensure that you’re receiving open and honest communication from us at Change. Our goal is always to provide a seamless service to you when trusting us with your money, future, and time.
- Alec Erasmus CTO
What a week.
As you most likely know, the global stock markets received a hefty haircut and the cryptocurrency market soon followed. The price of Bitcoin dropped around 50% last week and found a new low at the $3,800 area.
Many exchanges were having trouble keeping their service up during the crash and this magnified the price drop. Experienced speculators like to trade with high leverage and there was an unprecedented amount of liquidations across derivatives exchanges like BitMEX, Bybit, and also exchanges offering margin trading like OKEx, Binance, Bitfinex, and others. All-in-all, over $1.5 billion worth of positions were liquidated.
On the positive side, Bitcoin also shot up around 50% within an hour after reaching the bottom, indicating that there is still demand for the asset and that this area may provide strong support in the future. We have seen the stock market trending further downward, but Bitcoin has been keeping it steady above $5,000 and this is a good sign for the short term.
The nearest support level is currently at $4,800 with a few more support levels below it. The resistance zones are at $5,600 and $6,000. Bitcoin is likely to range between $4,800 and $5,600 until the sellers or buyers push the price through one of these areas.
Though we are currently resting above $5,000 in the short term, the option to make another low can not be ruled out as of yet since we have not seen the market react to the drop for a significant amount of time to be sure. We have also not seen how cryptocurrency behaves when global markets are in turmoil since cryptocurrency came into existence after the 2008 crisis was already over and the markets have been in a perpetual uptrend ever since until recently).
Considering what is happening in the regular financial markets, we advise to exercise extreme caution when making investment decisions in the coming months.
We will be using a 4-hour chart to make sense of the short term price action due to the extreme drop.