Ripple Price Surges 49% as Market Shakes Off Wednesday Woes

By Posted on 0 2 m read 0 views


Get Trading Recommendations and Read Analysis on Hacked.com for just $39 per month.

The ripple price surged by 49 percent on Thursday as the cryptocurrency markets made a $177 billion recovery from Wednesday’s low-point.

Ripple Price Makes 49 Percent Recovery

Like all cryptocurrencies, this week’s market movements have dealt ripple a losing hand. After peaking near $4 earlier this month, the ripple price plunged as low as $0.88 on Bittrex on Wednesday, representing a 77 percent peak-to-valley decline.

Thursday, however, demonstrated that the markets do not intend to go down without a fight, and cryptocurrencies rose across the board as $177 billion in capital flowed back into the ecosystem. The ripple price was one of the day’s top performers, rising 49 percent, which enabled XRP to outperform the cryptocurrency market cap index and recover to $1.56. Ripple now has a circulating market cap of $61.1 billion, which makes it roughly twice as valuable as bitcoin cash.

ripple price
XRP Price Chart

South Korea now accounts for 67 percent of all XRP trading, which may be a new all-time high. A plurality of that volume is concentrated on Bithumb, but Upbit has emerged as a major force within the market and currently ranks as the world’s largest exchange with a 24-hour volume in excess of $8.3 billion. These exchanges currently price XRP as high as $1.87, which represents a 20 percent premium over the token’s equivalent value on Western exchanges.

ripple price
Source: CoinMarketCap

Factors Behind the Ripple Price Rally

The primary driver of this rally is the market’s general upswing, but several factors enabled XRP to outperform other top cryptocurrencies.

Most importantly, yet another South Korean regulatory agency has spoken out publicly against the Justice Ministry’s proposed cryptocurrency exchange ban. The chairman of the country’s Fair Trade Commission said yesterday that he believes a blanket ban is “not realistically possible” and that the government does not have the authority to make such a policy change. Given the heavy concentration of XRP trading in Korea, this announcement understandably had an outsized effect on the ripple price.

Additionally, South Korean bank Woori Bank announced that it would conduct a second pilot program using Ripple’s enterprise blockchain. Although the trial will not include the use of XRP, these trials nevertheless seem to have a positive effect on the ripple price.

Featured image from Shutterstock.

Follow us on Telegram.
Advertisement


Source link

No tags

Share this article

Cryptocurrency Market Recovers as Bitcoin, Ethereum, et al. Spike 20%

By Posted on 0 3 m read 0 views


Get Trading Recommendations and Read Analysis on Hacked.com for just $39 per month.

After experiencing a 2-day slump during which the price of most cryptocurrencies including bitcoin, Ethereum, Ripple, and Bitcoin Cash declined significantly, the cryptocurrency market has started to recover.

Major Cryptocurrencies Surge in Value

Cryptocurrencies in the top 20 rankings of the global cryptocurrency market have recorded large gains over the past few hours. Ripple in particular demonstrated a staggering 48 percent increase in value, while bitcoin, Bitcoin Cash, Cardano, and Litecoin have risen in the range of 15 percent to 35 percent.

Although major cryptocurrencies are still down significantly from their all-time highs, bitcoin, Ethereum, Bitcoin Cash, and Ripple have all kept their “psychological thresholds.” Bitcoin has rebounded above the $10,000 mark, Ether recovered past $1,000, and Ripple did not decline below the $1 mark.

It is highly unlikely that fear, uncertainty and doubt (FUD) from the South Korean and Chinese cryptocurrency markets caused the recent correction, given its magnitude and the size of both markets. But, a reasonable explanation is the closure of bitcoin future contracts on January 17, and whales or institutional investors in the traditional finance market dumping cryptocurrencies like bitcoin to cash out their short contracts.

Over the past 12 months, Ripple has surged by 330-fold, Ether by 130-fold, and bitcoin by 19-fold, with minor corrections. It is also possible that the sudden increase of cryptocurrencies without a major drop in value led to a large correction to occur.

Previously, Ethereum creators Vitalik Buterin and Charles Hoskinson questioned the value of most cryptocurrencies in the market, given that tokens without products and users have obtained multi-billion dollar valuations within a short period of time.

With the recent correction in mind, public blockchains and cryptocurrencies within the global market will need to prove their potential and justify their market valuations by obtaining actual active user bases and useful products. Otherwise, even in a bull market like the cryptocurrency market, another major correction is inevitable.

Where Does Bitcoin and Ethereum Go Next?

In late 2017, billionaire investor Mike Novogratz predicted the price of bitcoin to achieve the $40,000 mark and Ether to surpass $1,500. If the cryptocurrency market can recover to its previous levels before January 16, when bitcoin and Ethereum were at $14,000 and $1,300 respectively, the cryptocurrency market would be in a better position to initiate stronger rallies without weak hands and speculators.

Earlier this week, during an interview with QZ, Constantin Papadimitriou, president of Pundi X, stated that the adoption of bitcoin, Ethereum, and other cryptocurrencies is rapidly increasing in India despite the government’s crackdown on the market. Consequently, the government has started to reconsider its policies and possibly regulate its cryptocurrency market, although no regulations have been finalized as of yet.

Increasing adoption of cryptocurrencies by large remittance markets like India and the Philippines will allow the global cryptocurrency market and blockchains within it to increase further in value. Major financial institutions such as Japan’s largest bank Mitsubishi UFJ Financial Group, better known as UFG, and South Korea’s second largest commercial bank Shinhan Bank have also started the development of cryptocurrency exchanges and wallet platforms.

Featured image from Shutterstock.

Follow us on Telegram.
Advertisement


Source link

No tags

Share this article

Blockchain Technology Building New Internet

By Posted on 0 3 m read 0 views


Get Trading Recommendations and Read Analysis on Hacked.com for just $39 per month.

This is a submitted sponsored story. CCN urges readers to conduct their own research with due diligence into the company, product or service mentioned in the content below.

The Internet has democratized access to information like no other innovation has ever done before, opening doors that were closed to so many. Nevertheless, however important the benefits of the Internet may have been, there is still a long way to go, and the first and most important thing to do is guaranteeing that it remains free and open.

With recent threats to net neutrality, a solution that is decentralized becomes more urgent than ever before, and companies are now looking at the Blockchain technology as a way of addressing that and other problems of the network.

Tech giants like Microsoft and IBM are looking to implement services that work through the Blockchain and distributed ledgers, while others, despite recognizing the potentialities of the technology, havent managed to find a way to have it inbuilt in their products, as is the case with Amazon. Amazon Web Services (AWS) announced that, contrary to the rumors, they wouldnt be launching Blockchain-based services.

The Blockchain technology answers to several issues, as it can provide for a decentralized and safe platform that can sustain several utilities.

Titanium is bringing the Internet to a new era

Having IaaS (Infrastructure as a Service) as their core service, Titanium Blockchain Infrastructure Services (TBIS) is relying on Ethereum Blockchain to provide data storage and network solutions to companies.

The aim is to facilitate the creation of global companies, by providing an easy, safe and cheap solution to setting up a network. Titanium offers virtualized servers, storage and databases, as well as routers or firewalls. All of this can be set up through a user-friendly app that can be used on any laptop, desktop, smartphone or tablet. This means that TBIS clients can set up an enterprise level infrastructure from the comfort of their own home.

This solution optimises operations, as it eliminates outage time. Whenever there is a fault in a device, the system will run autonomous healing actions and the operation will be transferred to another network of redundant nodes. Furthermore, Titanium is combining Raiden and Plasma scaling solutions to offer transactions at Visa-like speed (2,000 transactions per second).

A solid investment

The companys solid plan, besides the work of a very experienced team, has earned Titanium Blockchain Infrastructure Services accreditation from Dun & Bradstreet (D&B) and the Better Business Bureau (BBB).

The Founder and CEO, Michael Stollaire, is in no way new to the business. In 1999, he founded EHI, a technology consultancy specializing in enterprise infrastructure management. Besides a deep knowledge of the sector, he has brought along a very strong client catalog, which spans from small and medium-sized companies to giants like Microsoft, Apple, IBM or Boeing.

The team has a combined experience of over 200 years, and it includes experts in Ethereum Blockchain Technology, Business Management and Internet Network Infrastructure Management.

Titanium has launched a token that can be used for transactions in the TBIS system. The BAR token can be purchased through the companys ICO, which has been launched on Jan. 1, 2018.

The total supply of BAR tokens is 60 mln, but only 35 mln BAR will be available for sale. At the end of the sale, 60 percent of the BAR token will belong to investors, whereas 20 percent will be given as an incentive to the Titanium team, 10 percent will be used for Titanium Community Bounties and the remaining 10 percent will be allocated to the reserve pool.

Follow us on Telegram.
Advertisement


Source link

No tags

Share this article

Ethearnal Announces Revolutionary ICO 2.0, Disrupting The Freelancing Industry

By Posted on 0 4 m read 0 views


Get Trading Recommendations and Read Analysis on Hacked.com for just $39 per month.

This is a sponsored story. CCN urges readers to conduct their own research with due diligence into the company, product or service mentioned in the content below.

The freelancing landscape has changed dramatically in the past couple of years, buoyed by growing internet literacy and advances in mobile technology. Gone are the days when the on-demand professional was the ridicule of the global market now that it accounts for over 35% of America’s workforce and has been projected to dominate the global labor market by 2020.

The internet has made it easier to match employers with highly-skilled employees from anywhere in the world without the traditional overhead cost. Workers have been able to maximize every facet of their skills in ways the traditional 9-5 desk job wouldn’t have thought possible. Freelancing has grown into a $1.5 trillion industry, however, the industry remains fraught with perils ranging from dubious claims and reputation to conflict resolution, contract defaults, and fake identities. Ethearnal is set to disrupt this industry by bringing transparency and security to every engagement through blockchain technology.

Giving The Industry A Better Reputation

Ethearnal is revolutionizing the freelance industry through disintermediation of exchange, developing an ecosystem where users can direct engage each other. Ethearnal’s innovative ecosystem is built on trustless smart contracts, peer-to-peer (P2P) channels, and an immutable escrow and reputation system. The system deftly marries a tokenized reputation system with economic initiatives to give value to every engagement on the platform.

Reputation is one of the most difficult intangible assets to build, and the most expensive currency to leverage in any transaction. Unfortunately, its value has been cheapened by centralized systems that allow abandon flagged identities and start all over again.

Not so with Ethearnal.

Through smart contracts and IPFS technology on the blockchain, Ethearnal ensures that every identity is unique, cannot be falsified, and reputation is worth its weight in gold.

What’s My Reputation Worth?  

By tokenizing reputation through its native Ethearnal token (ERT), Ethearnal has finally solved the age-old problem of this undervalued asset; tangibility.

ERT is the embodiment of users “reputation” on the network, which every party has to deposit into a smart contract for every engagement. This amount will only be released when the work is completed according to the smart contract terms, paying 99% to the worker. The remaining 1% will be split between both parties in the form of ERT tokens directly purchased at the current market price. 0.5% of the transacted amount will also be distributed to both parties to incentivize further engagement on the platform and reward them for upholding the terms of engagement

But What If Someone Questions My Rep?

Ethearnal has developed a ground-breaking mediation system to resolve disputes on the platform. The network will create a pool of moderators from the community who will have to stake their reputation to resolve any conflict on the network. Moderators will stake an equivalent amount of ERT tokens as the disputing party, which they can only get back by resolving the dispute with their integrity intact and effecting a positive outcome. This will incentivize the community to always be thorough, diligent, and vigilant in the resolution of disputes.

Innovative Project, Innovative ICO

ICOs have been getting a lot of flack lately, due to the fast and loose way some developers have played with the sum deposited for the development of their proposed solutions. Ethearnal will be leveraging the innovative ICO 2.0 model to distributed and develop its platform.

Dubbed “DAICO” by Vitalik Buterin, Ethearnal’s ICO 2.0 merges the best of DAOs (Decentralized Autonomous Organizations) and traditional ICOs to put the development of the platform directly in the hands of investors. Investors will decide how and when to release the ICO funds to developers.

Ethearnal team will only receive 10% of ICO funds to start development. Subsequent funding will only be released to the team when they achieve predefined milestone targets for the community to vote on. The community’s feedback based on their votes will not only inform the smart contract-based fund release, but also refund investors if they are unhappy with the progress of the project.

Unlike most ICOs that have made it the norm to issue their token sale in stages, Ethearnal will be offering a dynamic hard cap that changes hourly. $1000 worth of tokens will be made available in the first hour by $1000 every hour. This means no one large investor can come in and buy up large numbers of tokens in one fell swoop. $1000 per hour means the playing field is leveled for big fish and small. The ICO is set to launch this month, with more details available on Ethearnal’s website

Follow us on Telegram: https://t.me/ethearnal

Follow us on Telegram.
Advertisement


Source link

No tags

Share this article

Japan’s Largest Bank MUFG Will Open Cryptocurrency Exchange: Local Reports

By Posted on 0 3 m read 0 views


Get Trading Recommendations and Read Analysis on Hacked.com for just $39 per month.

Mitsubishi UFJ Financial Group, the largest bank and financial institution in Japan by assets, is planning on launching a bitcoin and cryptocurrency exchange targeting institutional and retail investors.

Launching Cryptocurrency Exchange

Japan’s Mainichi Shimbun, one of the major newspapers in the country, and South Korea’s national public news publication KBS, reported that MUFG is preparing resources and a team of developers to establish a cryptocurrency exchange for the local cryptocurrency market.

As CCN reported In September 2017, the Japanese government and the Financial Services Agency (FSA) introduced a national licensing program to regulate cryptocurrency exchanges as proper financial institutions. 11 bitcoin exchanges received operating licenses and regulated financial service provider status. At the time, 17 cryptocurrency exchanges were being reviewed and throughout the past three months, more cryptocurrency exchanges have been approved to operate.

In the upcoming weeks, MUFG plans to gather necessary resources and talents to open a cryptocurrency exchange and file for an application to the Japanese FSA. However, Mainichi Shimbun reported that filing for the application to operate a cryptocurrency exchange in Japan is difficult, and the bank will need to undergo a rigorous process to launch a trading platform for digital assets.

Two months ago, CCN also reported that Shinhan Bank, the second largest commercial bank in South Korea, has started the development and testing of a bitcoin wallet and vault system, to provide secure services to existing cryptocurrency users.

A rapidly increasing number of financial institutions are entering the cryptocurrency market and the entrance of strictly regulated financial service providers will provide cryptocurrency traders a wider range of platforms to use to secure their portfolio of assets and cryptocurrencies.

Releasing a Token

According to Mainichi Shimbun, MUFG is also considering the launch of a crypto-token that hedges the token’s value to the price of Japanese yen. Essentially, MUFG would operate a reserve of Japanese yen, and produce an equivalent amount of MUFG token to match the price of the Japanese yen.

Local media outlets reported that MUFG’s token would serve as a crypto-asset to protect traders against market volatility. In periods of extreme volatility and large market corrections, traders can seamlessly move their assets into the MUFG Japanese yen-backed token and prevent temporary volatility from affecting their existing assets.

Conceptually, the MUFG’s crypto-token is similar to USDT, or Tether, which hedges the token’s value to the price of US dollars.

Given that USDT has been controversial due to the lack of proper third-party audits, in order for MUFG to operate a legitimate Japanese yen-backed cryptocurrency, it would have to conduct a third-party audit to ensure that each MUFG token is backed by the Japanese yen.

The timeframe of the launch of MUFG’s cryptocurrency exchange remains unclear, and the Japanese bank has not disclosed any additional information apart from that provided by Japanese media outlets.

It is optimistic for the Japanese cryptocurrency exchange market that major banks, specifically the biggest bank in the country, is planning to enter the cryptocurrency market and address growing demand for cryptocurrencies.

Featured image from Shutterstock.

Follow us on Telegram.
Advertisement


Source link

No tags

Share this article

Ripple Price Drops Below Dollar Parity to Punctuate 28% Skid

By Posted on 0 2 m read 1 views


Get Trading Recommendations and Read Analysis on Hacked.com for just $39 per month.

The ripple price fell below dollar parity this morning, punctuating the third-largest cryptocurrency’s 28 percent skid.

Ripple Price Dips Below $1

Ripple entered 2018 on a hot streak of parabolic proportions. During a one-month period, the global average ripple price rocketed from just $0.25 to an all-time high of $3.84, creating XRP millionaires almost overnight and briefly making Ripple co-founder Chris Larsen the nominal eighth-richest person in the world.

The downside to these breakneck rallies, however, is that their declines are often equally as precipitous. This has proven to be the case this week, as ripple has been among the coins hardest hit by a severe correction that has reverberated throughout the cryptoasset markets.

On Wednesday, the ripple price dropped to $0.99 on Bittrex, marking its first dip below dollar parity since late December, when it crossed the $1 threshold for the first time. This represents a single-day decline of 28 percent and a 74 percent pullback from its all-time high. Ripple now has a circulating market cap of just $38.3 billion.

ripple price
XRP Price Chart

The vast majority of XRP trading volume is concentrated on South Korean exchanges, which continue to price it as high as $1.18 as of the time of writing. This is not unusual, though, as South Korea is known for its so-called “kimchi premium” on cryptocurrencies.

ripple price
Source: CoinMarketCap

Cryptocurrency Market Cap Flirts With 50 Percent Correction

Although ripple has posted one of the worst single-day performances of any top-tier cryptocurrency, its correction has been far from an isolated incident. Prices have been plunging across the board, forcing the bitcoin price below $10,000 and the ethereum price below $900.

Altogether, the cryptocurrency market cap has shed approximately $402 billion from the all-time high it set on Jan. 7 and currently sits at just $433 billion — a peak-to-valley decline of 48 percent.

This correction has taken many traders by surprise, and investors — some of whom have never endured a true market correction — must grapple with whether to cut their losses or “hodl” through what could be either a temporary blip during a sustained rally or the first roar of a bear market awaking from prolonged hibernation.

Featured image from Shutterstock.

Follow us on Telegram.
Advertisement


Source link

No tags

Share this article

Fintech Bill: US Congress Plans to Combat Cryptocurrency Use in Terrorism Financing

By Posted on 0 2 m read 1 views


blockchain

Get Trading Recommendations and Read Analysis on Hacked.com for just $39 per month.

US policymakers have made targeting cryptocurrency-fueled terrorism and the illicit use of digital coins for any purpose a priority.

Rep. Ted Budd (R-NC) of the House Financial Services Committee on Jan. 10 introduced the Financial Technology Innovation and Defense Act to Congress. A key feature of the bill is a fintech task force designed to reward tipsters offering viable information about digital currencies and terrorist use. US policymakers have cryptocurrency-fueled terror on their bipartisan radar, as evidenced by a similar bill, the Homeland Security Assessment of Terrorists Use of Virtual Currencies Act, drafted by Rep. Kathleen Rice (D-NY) last May.

The fact that US lawmakers are focused on intercepting the illegal use of cryptocurrencies and enforcing ethical standards is a positive development for the industry, as it suggests that policymakers have come to terms with a digital coin world even if they’re not in the center of it. It seems like a much more productive use of resources versus attempting to thwart bitcoin to pay for transactions at retailers, for instance.

Rep. Budd’s bill proposes the establishment of an Independent Financial Technology Task Force comprised of half-a-dozen federal officials and a handful from the private sector across banking, nonprofits and think tanks. These individuals would be selected by Treasury Secretary Steven Mnuchin, who would also be included in the Task Force and who recently weighed in on the threat of treating bitcoin as an offshore Swiss account for money-laundering.

Nuts and Bolts

Similar to how the Federal Bureau of Investigation (FBI) offers rewards for information leading to the most-wanted criminals, the task force would create a program to compensate “any person who provides information leading to the conviction of an individual involved with terrorist use of digital currencies,” as per the bill. It doesn’t disclose the size of the reward or whether it would be paid in fiat money or bitcoin.

The task force would further develop a portfolio, dubbed the Fintech Leadership in Innovation Fund, which would be dedicated to developing tools to uncover terror financing and other “illicit use of digital currencies.” Through the fund, the task force can also distribute grants to US companies, universities, etc. that they deem relevant. In making these distributions, officials are especially keen on technologies that support KYC/AML protocols.

At about the same pace lawmakers and regulators are crafting policy, they’re learning about cryptocurrencies. A Senate panel is scheduled to hear testimony from CFTC and SEC officials on bitcoin and the apparent risks to the financial sector in early February, as per a Reuters report. The US SEC already has a task force, their’s focused on ICOs, and the CFTC is the regulator that gave the green light for the CME and CBOE to launch bitcoin futures trading.

Featured image from Shutterstock.

Follow us on Telegram.
Advertisement


Source link

No tags

Share this article

Cryptocurrency Markets Show Signs of Life After $400 Billion Crash

By Posted on 0 2 m read 1 views


Get Trading Recommendations and Read Analysis on Hacked.com for just $39 per month.

Cryptocurrency prices are showing signs of life following their $400 billion crash but investors are not out of the woods yet.

Cryptocurrency Markets Show Signs of Life After $400 Billion Crash

The cryptocurrency market cap — a metric which measures the value of all circulating cryptocurrencies — fell as low as $415 billion on Wednesday, a more than 50 percent decline from the $835 billion high-water mark it set earlier this month.

cryptocurrency market cap
Source: CoinMarketCap

Since reaching that low point, though, the cryptocurrency market cap has experienced a 10 percent recovery and is currently valued at $458 billion.

bitcoin price
Source: CoinMarketCap

An examination of the charts demonstrates that while cryptocurrency prices remain firmly in the red for the day, all major coins have returned strong performances over the past hour.

The bitcoin price is currently trading at a global average of $10,116, representing a one-hour gain of six percent and a welcome recovery after following a sub-$10,000 dip earlier in the day. Bitcoin now has a market cap of just over $170 billion and is down 15 percent for the day.

The ethereum price made a nine percent climb, although it remains well below the $1,000 barrier and its market cap will need a $17 billion boost to return to $100 billion.

Third-ranked ripple saw a 10 percent increase that raised its price to just above dollar parity, a mark it had slipped below this morning during today’s 25 percent skid. Nevertheless, the ripple price is still down 49 percent for the week, which is worst among top 10-cryptocurrencies.

Bitcoin cash, meanwhile, rose eight percent to $1,529 but, like most top-tier coins, continues to trade more than 20 percent below its previous-day level.

Cardano and IOTA performed slightly better, rising nine percent in the past hour, while litecoin, NEM and, stellar all leaped by at least 11 percent.

The NEO price’s 20 percent rally to $116 was best among top 10-cryptocurrencies, as was its relatively-mundane weekly decline of four percent.

Ecosystem Purging ‘Easy Money’ Crowd

While cryptocurrency skeptics will likely rush to publish a new series of bitcoin obituaries, the consensus among long-time market observers is that this correction — though severe — is healthy for the market.

Spencer Bogart, a partner at cryptoasset hedge fund Blockchain Capital, compared the pullback to a forest fire, which is both destructive and necessary for the sustained growth of the ecosystem.

spencer bogart

He predicted that the market will purge the “easy money crowd” that joined the markets during the fourth quarter run-up and invested based on pure speculation rather than appreciation for the potential of the underlying technology.

“Wish I could say I was sad to see you go,” he said.

Featured image from Shutterstock.

Follow us on Telegram.
Advertisement


Source link

No tags

Share this article

Cryptocurrencies Are in Free Fall, but Is It All Bad?

By Posted on 0 4 m read 1 views


Get Trading Recommendations and Read Analysis on Hacked.com for just $39 per month.

Cryptocurrencies are in free fall, sparing only a handful of coins. But is it all bad? Or can some good come from this flash crash of January 2018?

According to CoinMarketCap, at the time of writing, only five of the top 100 coins by market cap have avoided a plunge in value over the past 24-hours. The vast majority of those falls have been in the double-digits. But the damage has not been limited to altcoins. The top eleven currencies have all similarly recorded double-digit falls.

Bitcoin has fallen to a six-week low, and data from CoinMarketCap recorded Bitcoin’s market cap, at its lowest point, at almost half of what it was a month ago. $250 billion has been wiped off the total cryptocurrency market since Monday.

There are many factors that may have contributed to the bloodletting. There is continued uncertainty over the regulatory future of cryptocurrency in Korea, which represents 12% of global trading volumes. The Chinese tightening of regulations of cryptocurrencies, ICOs, and mining present potential risks to the market’s viability. Although the Chinese contribution to trading volume has fallen to 10%, it had been a significant player in the development of virtual currencies. There are growing fears of more regulation of the industry. French Finance Minister Bruno Le Maire has proposed a discussion ‘on the question of Bitcoin’ at the forthcoming G20 meeting in April. His German and Italian counterparts have agreed. Yesterday, the finance minister announced the formation of a task force to devise regulations for cryptocurrencies, led by a notorious bitcoin skeptic.

Exacerbating the plunge has been the spectacular rise of altcoin valuations over recent months. Those gains have led some observers to predict a dire future for many of these smaller coins that may not offer any new value already provided by the more established coins.

The Bright Side

But in the bloodbath of the current slump, can any good from of it? Consolidation periods can often be healthy ways for markets to avoid forming short-term bubbles, although it could be argued the bubble has already formed. It is also important to remember that the cryptocurrency market has seen major price corrections in the past and bounced back from them.

A rising tide lifts all boats. A correction can provide an opportune time for investors to reassess their strategies. There is a well-known quote in investor circles that “Bull markets are born on pessimism, grown on skepticism, mature on optimism, and die on euphoria.” The euphoria of the past few months may have clouded the judgment of many cryptocurrency and ICO investors.

The blockchain market has become overheated and increasingly sullied by new entrants with dubious credentials, projects without significant benefits or use cases, and little underlying value. Poorly drafted whitepapers now litter the crypto-space. What better way to separate projects that are worthwhile from those that may not be than a substantial crash.

As recently as December, when valuations surpassed $500 billion, Ethereum creator Vitalik Buterin asked the question, “Have we earned it?” The destructive nature of the current crash may force coin developers to focus on creating value and utility for their currencies, and ultimately for the public. This would discourage a reliance on hype-fueled market speculation. This is especially true of altcoins.

Some projects may, in fact, be creatively destroyed. But what will replace them will be better, more valuable, and more useful to a society increasingly reliant on innovative solutions to its many problems.

Furthermore, for seasoned crypto investors, dips are opportune times to buy. For newer investors, this is the first major correction they have experienced. Some may have sold their positions in fear and be too spooked to return to the crypto-space.

For others, it will serve as a reminder that it is sometimes important to ignore the hype. A thorough evaluation of the fundamentals of assets, what unmet needs they serve, how they can be useful, and how credentialed the team behind them is will replace an unsophisticated pump-and-dump mentality. The crypto landscape will be healthier for the greater average wisdom among investors.

Finally, if one of the fears driving the crash – the threat of regulation – does come to fruition, that may actually be beneficial for the cryptocurrency market. A trajectory of a more sustainable growth path and more widespread uptake among retailers, for example, could help cryptocurrencies offer measurable value.

More regulation might also encourage hitherto reluctant fund managers to enter the space, as well as skeptical retail investors, providing more liquidity and greater stability.

So while the January flash crash of 2018 is difficult for investors to enjoy, it may result in some long-term positives.  

For a real-time market cap chart, click here.

Glass half full image from Shutterstock.

Follow us on Telegram.
Advertisement


Source link

No tags

Share this article

Cryptocurrency Adopters Turn to Bitcoin during Market Downturn

By Posted on 0 3 m read 1 views


Bitcoin mining

Get Trading Recommendations and Read Analysis on Hacked.com for just $39 per month.

The dominance index of bitcoin, which calculates the dominance of the cryptocurrency over the global market, has increased over the past 48 hours amidst one of the worst corrections the market has experienced since June 2017.

Is Bitcoin Reserve Currency of Crypto Market?

Since 2016, upon the emergence of digital tokens and alternative cryptocurrencies, many investors have started to consider bitcoin as the reserve currency of the cryptocurrency market. While it often does not return the high profitability of alternative cryptocurrencies, it has a lower volatility rate than most of the cryptocurrencies in the market.

Throughout 2017, both Ripple and Ethereum outperformed bitcoin in annual returns. Ripple led to a 330x return, while Ethereum recorded a 100x increase in price. Bitcoin ended the year with a 15x increase in value.

On January 15, a major correction hit the cryptocurrency market and the vast majority of cryptocurrencies in the market plunged in value. The valuation of all cryptocurrencies in the market declined from $700 billion to $420 billion, by more than $280 billion.

Throughout the correction, the dominance index of bitcoin, which declined to an all-time low in early January, surged from 32 percent to 38 percent, as alternative cryptocurrency investors reallocated their funds into major cryptocurrencies like bitcoin and Ethereum.

Consequently, bitcoin and Ethereum experienced a relatively small decline in value, in contrast, other cryptocurrencies in the market.

Mati Greenspan, senior market analyst at eToro, stated:

“The action we’re seeing may seem dramatic but is really quite normal for this market. All in all, this drop has brought us back to the prices that were traded about a month ago for most cryptocurrencies.”

Was a Correction Good for the Market?

During an interview with CNBC, Greenspan stated that the major correction of the market was beneficial for the global market, especially for Japan and South Korea, because it led to the decline in premiums in certain regions.

Previously, within the South Korean cryptocurrency market, bitcoin, Ethereum, and many other cryptocurrencies were being traded with a premium of around 30 to 40 percent. Traders within the South Korean market were paying 30 to 40 percent more to invest in cryptocurrencies.

One of the major concerns of the South Korean government which triggered the entire cryptocurrency trading ban fiasco was the premiums in the local market and the high prices South Korean traders have had to manage. Greenspan stated that given the premiums in Japan and South Korea declined, and the global market will likely stabilize after the correction, the recent drop in the price of virtually every single cryptocurrency in the market was a positive movement for the global market.

“The premiums that were being paid by Japanese and South Korean crypto traders is also coming down, so that’s a good sign as well, said Greenspan.

It is also important to acknowledge the fact that Ripple, Ethereum, and Dash along with other cryptocurrencies increased by more than 100x in 2017. Economists were calling off cryptocurrencies by describing the market as a bubble due to such returns. But, it would no longer be accurate to call the market a bubble because it suffers major corrections on a regular basis.

Featured image from Shutterstock.

Follow us on Telegram.
Advertisement


Source link

No tags

Share this article