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Recent Market Crash: Volatility has held Crypto back in the past, A Crash may be key to mature markets

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The relative stability that Bitcoin has enjoyed recently is a strong indicator that things are changing. Investments made upon crypto gold rush are gambling
We thank Aubrey Hansen for this guest post.

The relative stability that Bitcoin has enjoyed recently is a strong indicator that things are changing. This much is obvious: if 2017 was the summer of ICOs, this year’s was a space filled with hundreds of startups shouting into a void. Here skepticism has run rife and Ethereum notably saw a dramatic price correction, in part driven by startups selling off their ETH holdings in droves due to unsuccessful ICOs.

 So, if nearly $13 billion of value was lost Thursday, all is not necessarily lost. Sentiment suffers but the end goal of widespread adoption does not. Crypto communities are increasingly saying that, no we do not want revolutionary concepts but instead show us a working product.

 

Neither should any of us want an inflated market. By design, ICOs work as a fundraising process and offer little to the retail investor beyond vague hopes of future gains. Cryptocurrencies need a stable value that is linked less to speculation and more to genuine demand. Otherwise, there is no hope of attracting institutional money.

 

If a bull run is in the offing it could be wise not to get too excited; similarly, crashes should be – if not welcomed – accepted with equanimity as part of a growing process. We are hopefully moving towards a stage where the old school, so Bitcoin, Ethereum, can offer some level of stability while new altcoins are judged on their tech and credibility.

 

This offers retail investors an opportunity, but no longer should we entertain the fantasy of recouping our money 1,000 times over. A mature market will see much more of ‘pocket change’ investments which, if held in the long run, could prove to turn out as profitable ventures.

 

The old meme rings true: Be in it for the tech

You are welcome, of course, to dream of flying to the proverbial moon. But investment decisions made upon dreams of a crypto gold rush are as good as gambling. If indeed the ‘days of 1,000 times gains are over’ it is hard to see how this would be a good strategy for retail investors.

 

Development of blockchain technologies has exploded far beyond the maiden project that is bitcoin. A nascent technology, it now exists in many permutations as development teams around the world work to solve the current challenges blocking progress into the mainstream.

 

You do not need to be gambling on the big coins as these markets are too vast for retail investors to play in, perhaps with an exception for savvy day traders and long-term hodlers.

 

Buy alt-coins with pocket change

It is a lot of work to sort through the crypto noise, though. There are platforms out there trying to deliver something different: notably, the issue of scalability with traditional blockchains may require a different approach. Other solutions have been proposed and young projects are proposing an entirely different design in their networks. Here are two examples which both look to have a working product by 2019; these are possibly the types of coins you should put your change into and forget about for two years.

CyberVein (CVT) recently featured in Forbes for their platform which, similarly to IOTA (MIOTA), proposes a Directed Acyclic Graph (DAG) structure. This scales far better than traditional blockchains, they say: several thousands of transactions can complete per second, compared to bitcoin’s cap at seven. There could be some capital getting in at ground level with the Chinese startup; it is certainly worth throwing at least ten dollars into.

FairLayer (FRD) has scant noise around it outside of smaller tech circles, but the kinds of people who will be investing in this project lend it more credibility than most. Its founder is Egor Homakov, a respected programmer who enjoys, if not reverence, certainly high praise from people best placed to make such judgements. Homakov makes bold claims in the project abstract – he believes his network will be infinitely scalable without compromise on security – so it’s well worth a read.

 

Keep an open, yet discerning mind

The initial era of hype is gone and, as a consequence, it is more important than ever that retail investors scrutinize projects, encourage debate and support projects. Throwing too much weight behind an altcoin may not be a wise move for most, instead, distribute investments across projects which pique interest.

What will help the crypto markets reach a level of serious maturity is less speculation and more functional judgements. If the community were to achieve this, it could bring the legitimacy crypto’s to need to foster widespread adoption.

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2 Comments

2 Comments

  1. Fuckbanks

    October 12, 2018 at 12:50 am

    Thousands of inveators lost money including me and now this cock suckers have the urge to say that 1000 gains are over? SHUT THE FUCK UP there manipulating the market extremly and that is FRAUD they should be held accountable for this!!

  2. Pingback: Recent Market Crash: Volatility has held Crypto back in the past, A Crash may be key to mature markets – The Coinage Times

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#Bitcoin

Donald Trump policies push Mexico to Bitcoin

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Mexico has seen a new all-time high trading volume on localbitcoins. This comes out on the back of the announcement from the Trump Whitehouse.

Mexico has seen a new all-time high trading volume on localbitcoins. This comes out on the back of the announcement from the Trump Whitehouse that remittance payments of Mexican migrants in the United States of America will potentially be the target of new restrictions essentially ending the possibility of Mexican migrant workers to be able to cheaply send money back home to their families.

 

Mexico adopting Bitcoin:

Mexico has been experiencing a massive increase in the number of transactions on localbitcoins. Mexican migrant workers are believed to be exploited by the remittance companies which are charging around 10% fees. What is essentially being discussed here by the Trump Whitehouse is a new tax on these migrant workers. The number that they are currently floating around is a 3% tax on the remittances going from the USA to Mexico. This may not seem super crazy but considering the $33.4 billion which were sent to Mexico in 2018 alone, that extra 3% could mean $1 billion more per year for the United States government.

 

98% of the transactions that were sent during the last year, were sent via electronic means which means that there is actually a very strong remittance route that is ready for mass disruption going from the United States to Mexico and Bitcoin could be the perfect answer. However, the average size of a remittance payment from the United States to Mexico is $322 last year and the problem is that if the fees rise again exponentially on bitcoin, then bitcoin might not be the ideal cryptocurrency for these kinds of smaller remittance payments. Maybe we are going to see some other cryptocurrency being adopted in that situation. But regardless of which cryptocurrency is used, we can see that there is a clear need for disruption as government policies again seeks to impede or overly exploit the free float of money.

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#Bitcoin

Bitcoin Crashes Downwards: Is BTC Going to Fall Back to $4000?

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Bitcoin fell down to test the $5000 support level. If the current support around $5000 is broken, BTC might really crash to $4500 and $4200 support levels.

Bitcoin fell down to test the $5000 support level which is the most crucial level for BTC currently. The downward correction started after bitcoin tested the $5500 resistance level yesterday at around 18:00 UTC.

 

The resistance around $5500 proved very strong and pushed the price downwards sharply. The sharp declining pattern attracted a lot of sellers which even pushed the price below $5200 support level and BTC tested the $5000 support reaching up to $5018.

BTCUSD Price Chart- Coinbase

BTCUSD Price Chart- Coinbase

Bitcoin is currently trading around $5070 (at the time of publication) showcasing a bearish pattern.

 

Bitcoin Price Drop:

The sudden price drop has led to people speculating that BTC might soon crash back to the $4000 range. Earlier, analysts were also predicting the sudden rise of bitcoin to be a conspiracy. Also, Bloomberg had also called the sudden rise a Blip. If BTC had successfully crossed over the $5500 range, the next major resistance was around $5800, however, BTC fell sharply losing more than $400 in value over the last 24 hours.

 

The bearish move does not clearly indicate a crash towards $4500 and $4000 range, however, if the current major support around $5000 is broken, BTC might really crash to $4500 and $4200 support levels. With the price of bitcoin falling, other major altcoins are also in the red zone today with Ethereum falling more than 8% in the last 24 hours, XRP falling more than 6% and Litecoin falling around 12% in the last 24 hours.

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China to completely ban crypto mining: Bitcoin about to Crash Hard?

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As reported by Bloomberg, China is moving towards putting a complete ban on mining bitcoin and other crypto as it causes serious wasatage of resources.

As reported by Bloomberg, China is moving towards putting a complete ban on mining cryptocurrencies such as bitcoin. In accordance to a document posted by the National Department and Reform Commission of China, the mining of cryptocurrencies should be completely banned as it causes serious wasatage of resources.

 

China is known to be the largest hub of cryptocurrency mining with huge mining rigs been set up in the country. Earlier, China has also banned small investors to invest in security token offerings or STOs and only large investors with more than $1 million funds are allowed to invest in such projects. Now, the country is planning to take strict action against cryptocurrency miners in the country.

 

Cryptocurrency miners were earlier attracted to China due to their cheap electricity rates and subsidies in the country, however, due to the strict actions being taken by the government with the guidelines of the NDRC which has disincentivized cryptocurrency mining, a lot of miners have shut down their operations or moved to other nations.

 

Largest Mining Pools in China:

China has been a hub for some of the largest cryptocurrency mining polls. Even though the mining pools have been shifting to other countries, there has been some effect of the ban on the market for bitcoin and other cryptocurrencies as the mining is a major part of the overall working of cryptocurrencies.

 

How do you think the complete ban on cryptocurrency mining in China will effect the bitcoin price? Tell us in the comments section below.

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