After coming into the mainstream in 2017, the cryptocurrency market has experienced an extended cooling off period throughout 2018. Between December 2017 and September 2018, the price of flagship cryptocurrency, Bitcoin (BTC), saw prices decline from just under $20,000 to around the $6,000 range. While there have been several bounces throughout 2018, Bitcoin seems to continuously retest the key $6,000 support level. Overall, the decline represents nearly 70% in losses from the December highs to the 2018 lows.
While this period of time has been extremely gut-wrenching for the crypto community, it is important to remember that Bitcoin has experienced its fair share of crashes over its ten-year history. The current decline represents only the third worst Bitcoin crash in its history.
According to HowMuch.net, the price of Bitcoin has seen at least thirteen major crashes, in which the underlying price saw declines of 30% or greater. The worst Bitcoin crash took place between November 30, 2013 and January 14, 2015, in which the cryptocurrency saw prices dive from $1,163 to $152.40. This drop represented a loss of 87% over a 411-day period.
The second worst Bitcoin crash came during April 10, 2013 to April 12, 2013, when prices collapsed 83% over a three-day period. Bitcoin’s price dropped from $259.34 to $45.00 during the “flash collapse.”
Bitcoin’s history of crash and recovery is well-documented, yet many people seem to question if something is different this time around. There is no doubt that Bitcoin and cryptocurrency, in general, has some serious volatility concerns, but adoption and public interest has only continued to explode over the past decade.
Fundstrat CEO and Notable Bitcoin bull, Tom Lee, has become widely respected for his predictions in the cryptocurrency space. Often appearing on CNBC, the analyst is one of the crypto movement’s key Wall Street backers.
In January 2018, Lee announced his prediction that Bitcoin would hit $25,000 by the end of the year. A few months later, the analyst cut his forecast to $22,000 by year’s end. However, just in the past week, Tom Lee says he “still thinks it’s possible” that Bitcoin could hit $25,000 by the end of 2018. Backing up his prediction is noting the seeming close correlation with emerging markets.
“Both really essentially peaked early this year, and they both have been in a downward trend… Until emerging markets begin to turn, I think in some ways that correlation is going to hold and tell us that sort of the risk on mentality is those buyers aren’t buying Bitcoin,” says Tom Lee.
As Bitcoin and cryptocurrencies continue to find solid support around $6,000, an increasing number of bullish outlooks seem to be slowly trickling out. With the bottom close or just behind us, BitFroniter Capital Holdings, Inc. (OTC Pink: BFCH) is one cryptocurrency company that will benefit from a Bitcoin resurgence.
Overview: BitFrontier Capital Holdings, Inc. (OTC Pink: BFCH)
BitFrontier Capital Holdings, Inc. is a Virginia-based cryptocurrency holding company, which currently has two wholly-owned subsidiaries: BitFrontier Capital Investments, Inc. and BitFrontier Technologies, Inc.
The company’s Capital Investments subsidiary will serve as the venture capital and investment arm of the holding company. This could include activities such as: investing in public or private companies, acquiring blockchain companies, joint ventures, and more.
BitFrontier’s Technology subsidiary will house the cryptocurrency mining operations and facilities. The company is currently in the process of clearing and preparing 1.3 acres of industrial land in Virginia for construction of a cryptomining warehouse. This will be BitFrontier’s first cryptomining facility.
Once construction is complete, the warehouse will be able to store around 112 network server racks, which will hold 18 miners per rack for a total of 2,016 mining machines per facility. Management currently plans to construct as many as five total cryptomining facilities, which would be able to hold around 10,080 total cryptomining machines.
“Cryptocurrency mining (e.g. bitcoin mining) entails running ASIC (application-specific integrated circuit) servers or other specialized servers which solve a set of prescribed complex mathematical calculations in order to add a block to a blockchain and thereby confirm digital asset transactions. A party which is successful in adding a block to the blockchain is awarded a fixed number of digital assets in return.”
BFCH: Recent News
BitFrontier Capital Holdings, Inc. has continued to be very focused on clearing and processing its leased industrial land in order to begin constructing the first facility. Management team has been active and diligent with obtaining all the necessary permits and paperwork associated with necessary utilities and features that the warehouse will need to conduct operations. Here is some of the company’s most recent official news:
June 2018:
20th– BitFrontier Capital Holdings, Inc. announced that its Regulation A offering had been officially qualified by the Securities and Exchange Commission (SEC). This allowed the company to effectively begin collecting on its Reg A offering in order to secure funding for construction, mining machine purchases, etc.
29th– BitFroniter Capital Holdings announced that it had signed a ground lease for 1.3 acres of industrial land in Virginia. About 1 acre of the total land will be fenced in and secured from outside entry.
“This building site was selected over other potential locations for several key factors:
- The average cost of industrial electricity in the area is 6.53c/kWh. With industrial rates in in the U.S. ranging from 4.13c/kWh to 30.82c/kWh, we are well under the national average cost of industrial electricity in the U.S. providing greater profit margins for our mining operations,
- The average temperature is approximately 53°F, which is more than optimal for operating mining equipment. We will not be required to run costly air-conditioning equipment for the miners, and instead will have an evaporative cooling system, which will cut the electrical costs for cooling the miners significantly compared to traditional air-conditioning,
- It is large enough to accommodate four of our mining facilities,
- It has already been approved for industrial operations, which should facilitate easy access to building and operating permits,
- And the leasing entity has expressed interest in selling the property to us in ten years when the lease expires.”
August 2018:
7th– The company announced that it had retained Hathaway & Kunz, LLP to be the company’s special counsel with regards to cancelling over 12 billion shares of BitFrontier’s common share count. Specifically, management is looking to cancel 12.26 billion shares of BFCH (which makes up nearly 99% of total outstanding shares), which was allegedly “improperly issued shares by former management.” The special counsel is expected to file a Complaint for Declaratory Judgement to cancel the 12.26 billion shares with the court system shortly.
Overall, BitFrontier Capital Holdings, Inc. is an exciting up-and-coming cryptocurrency holding company that plans to focus on mining and venture capital to start off. The company continues to focus on getting its first cryptocurrency mining facility constructed and running. As soon as the warehouse is operational and the cryptomining machines are plugged in and active, BitFrontier will be able to begin generating regular revenue. The 12.26 billion share cancellation is also a major announcement and if approved, would be a huge valuation boost for shareholders. As we head into Fall and towards a potential bottom in Bitcoin prices, keep an eye on BitFrontier Capital Holdings.
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