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Bitcoin Chart complexities

· November 8, 2014 · 11:15 am
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Bitcoin Chart Complexities

Bitcoin is a virtual currency sometimes referred to as a crypto currency and was created by Satoshi Nakamoto. It can be used in the purchase of goods both electronically and locally. Its main difference from our money, which is more conventional is its decentralized nature making it independent. There is no controlling institution that the Bitcoin network has been tagged to for instance the US Dollar to the country USA. The whole networks run across organizations and individuals who are referred to as the Bitcoin miners. The verification of the Bitcoin transactions is achieved through a mathematical algorithm. This form of currency is considered to be a democratic form of currency.

The bitcoin charts can also be used to interpret the long term trends that exist. The long term trends will be measured using the simple moving averages for 50 and 100 days.In the short term those simple moving averages that stretch for 10 to 20 days will be used. When the averages on the 50 days becomes greater than that in the 100 days this position will be considered as a long term one and will be indicated in the color red.However, when the 20 day simple moving average exceeds that of the 10 day the position is regarded as short and comes in the color green.

The bitcoin charts can also show us in the denominational currency of USD the total amount of revenue that the bitcoin miners accrue. The miner can be any person who, provided they have a computer which has been connected to the internet, will be able to lend the computer’s processing power in the production of these coins. As a result of this they will receive some form of compensation. A lot of these miners use complex hardware when it comes to this data for the purposes of mining, while others would rather they use computers which are at home.

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