According to Goldman Sachs, the cryptocurrency markets will not recover from their present correction. On 5th February, Steve Strongin (Goldman Sachs head of investment research) said, the high correlation between several cryptocurrencies makes him really anxious. Some currencies that do not survive are expected to trade to zero due to the lack of intrinsic value.
Strongin is worried about the possibility that maybe one or a few of the existing cryptocurrencies could ascend from the speculative bubbles, just like the crypto equivalents of Google or Amazon. However, he said that he doesn’t think that most of the coins will ever recuperate to their all-time highs.
There have been many questions arising like, is there any cryptocurrency that’ll be like Google or Amazon? Or are they going to end up just like the other now-defunct search engines? Strongin said that this doesn’t mean that the prices of cryptocurrency cannot increase at all because they are in a speculative bubble at this time. But at the same time he said, that most of the cryptocurrencies might bounce back to their all-time highs, but some of them are never going see their current peaks ever again.
This clearly shows that the speculative bubble is coming to its end and rather than as a collective asset class, investors are going to start judging the cryptocurrencies from their individual merits as a lot of casual retail investors are already familiar with it. It also seems like the ICO (initial coin offering) success will suddenly come to its end.
Strongin said that the winners-take-most sight of the market is not very unique to Goldman Sachs. On Wednesday, the founder of DCG (Digital Currency Group) Barry Silbert, offered the same remarks at “Yahoo Finance All Markets Summit: Crypto” with explicably more positive stance on the entire industry.
According to Silbert, a huge majority of crypto-assets are facing a binary outcome. They are either going to become extremely valuable or they are going to become worthless. He added, this is why Grayscale Investments (a DCG portfolio company) launched its newest product, a fund related to crypto-asset investment and it holds the market cap (weighted positions) in the most major five cryptocurrencies and balances it again quarterly to imitate market movements.
Many other experts have also warned the investors on cryptocurrencies. Nouriel Roubini, who’s a well- known economist said on Tuesday, that the price of bitcoin would also crash to zero. Warren Buffett also said in a recent interview that cryptocurrencies are definitely going to have a bad ending.
The price of bitcoin has finally surpassed $8,500 and all major coins are also struggling to hit their all-time-highs, which shows that the cryptocurrency market is finally seeing a recovery. The market has been seeing its longest downfall since December and the cryptocurrency market cap altogether dropped by $18 billion recently, however, things are now getting rebounded once again.
Bitcoin Price still struggles to surpass $9,000:
On Tuesday, the price of Bitcoin made another push and was trading at $9,000, which demonstrated the significance of its mark but after not so long, it got stuck at $8,999 and started to flip once again. This decline in the price of Bitcoin continued till the early morning hours throughout Tuesday and BTC ultimately experienced a slight bump by hitting a low of $8,313. Bitcoin is valued above $8,800 at this very moment, which means that it has got the market cap of $148 billion with 1% upsurge in its worth, but still bitcoin struggles to surpass the $9000 mark.
Upsurge in Ethereum Price:
The price of Ethereum has seen an upsurge once again, as it was declined by 4% on Tuesday, but at the present time, it’s priced at $864. Ethereum has now increased by 1.6%, which translates that it has the market cap of $84 billion at this time. Despite the fact that it has declined recently, the looming introduction of CryptoKitties in China has to be monitored by the investors of Ethereum as it could provide the price of Ethereum with a very little bounce.
100 largest cryptocurrencies of the market have managed to stand against the US dollar which ended up in the favour of altcoin markets, in which few cryptocurrencies that showed a single-day gain didn’t rank in the market cap top 10, whereas the top cryptocurrency bitcoin, struggles to achieve its all-time-highs.
The price of Ripple has seen a 1.3% decline, which indicates that the investors are becoming more proficient at extricating information that is helpful for the Ripple company. In the meantime, the price of Bitcoin Cash is currently trading at $1,282 and has seen 3.60% upsurge.
The sixth one on the ranking, Cardano has borne a 0.58% upsurge in its value and is now trading at $0.37. A serious challenge is now being faced by the Cardano’s ADA token from EOS, which has the 9th largest market cap, $6 billion.
The price of Litecoin has seen 15% upsurge in the value which means it’s currently valued at $182, while NEO which is on number 8th in the ranking is priced at $113 with a 0.75% upsurge.
IOTA and Stellar have seen a 3.8% and 6.7% upsurge in the price respectively and their prices are valued at $1.8 and $0.5 individually.
We all know that Bitcoin is the king of digital currencies, and there doesn’t seem to be any other coin that can dethrone it from the top.
Although not similar, many digital currencies can still be used as a perfect alternative to Bitcoin. Some even claim to be technically superior to Bitcoin. Whether it’s true or not is completely another debate. In this article, we have discussed the top five digital currencies that are closest to what Bitcoin offers and can be used as an alternative to the king of cryptocurrency.
Top Alternatives to Bitcoin – Ethereum:
Bitcoin vs Ethereum is the closest battle when it comes to currencies trying to overtake Bitcoin.
Ethereum is a public blockchain software which promises to offer much more than just digital currency. The developers can code the software and power it through the public blockchain.
The users can then sell their processing power and get paid in “ether” – the second largest cryptocurrency by market capitalization after Bitcoin.
Ethereum has a market cap of $1bn USD.
Emerged in 2012, Ripple has become one of the most popular digital currencies to make online transactions anonymously. The paramount aspect of ripple is that it offers instant conversion into several other currencies.
Ripple considers itself a companion of Bitcoin and converts Bitcoin to Ripple and vice versa.
The market cap of ripple is $220m USD, making it the third largest cryptocurrency in the world.
Litecoin emerged in 2011 and is one of the oldest cryptocurrencies out there. Given below are some highlights of Litecoin:
- Similar to Bitcoin, Litecoin is decentralized.
- Litecoin is also generated through solving algorithms, which become more and more difficult over time.
- A Litecoin block takes just 2.5 minutes, which is much quicker than Bitcoin – where it takes around 10 minutes to generate one block.
- Due to quick generation, Litecoin supports far more transactions than Bitcoin.
- The overall cap limit of Litecoin is set at 84 million, which is relatively higher than that of Bitcoin’s (21 million).
The current market cap of Litecoin is about $175 million – making it the 4th largest cryptocurrency in the digital world.
With $170 USD market cap, Steem is the 5th largest digital currency. “Steemit” is the largest platform that offers the opportunity to earn Steem. The platform is filled with a huge range of stories.
Since there is no mining process, you can only earn Steem by contributing to “Steemit”, either by writing articles or rating/commenting on other’s articles.
The last one on our list is Dash, which, in terms of features is pretty close to Bitcoin software. Here are some unique features of Dash:
- Advanced privacy. Some even say its privacy features surpass the ones offered by Bitcoin.
- Whereas Bitcoin transactions can take several minutes, Dash transactions are quick and instant.
- Low transaction fees.
- Similar to Bitcoin, Dash is P2P and decentralized
Although the competition is tough, Bitcoin is leading the race by a fair margin and isn’t going away anytime soon. However, the other currencies are also there to stay and compete, which will surely play a significant role in the evolution of digital currency environment in near future.
Looks like Bitcoin’s three-year civil war is finally nearing its end now that SegWit has locked-in. However, it won’t officially lock-in until tomorrow, once the signaling period has ended. The network will transition into a “buffer week” for a few weeks where users and miners will be given the opportunity to upgrade their software. Seemingly, after August 21, SegWit will activate and miners will begin to reject blocks that do not support this change.
Segregated Witness was first proposed in December 2015, by Bitcoin developer Pieter Wuille. SegWit is expected to fit in more number of transactions in each 1MB block thus reducing the congestion on the network. This has been a conflict within the bitcoin community for quite a long time but it appears to be finally resolved.
Also, other communities like Litecoin activated SegWit last spring.
News credit: coindesk.com
Image credits: gadgetsnow.com
The cryptocurrencies such as Bitcoin, Ethereum, Litecoin, etc. exist as a record on hard drives, wallets, or in cold storage.
The first ever cryptocurrency was launched in 2009 to introduce a system; run by its users with the interference of the third party. This digital system was launched to decentralize the money system and minimize the government as well as bank’s hold. To attain that goal, Bitcoin’s author Satoshi Nakamoto came up with a digital technology named Blockchain.
Basically, blockchain is a distributed public ledger of each transaction. On the other hand, Bitcoin itself is just a record of this ledger. By tracking the history, users can tell who owns the bitcoins and in how much quantity.
We all know that digital currencies are constructed on the blockchain. However, the blockchain of each digital currency varies. It may have different rules, terms and conditions, transaction timings, security management, and so on.
Meanwhile, the basic principle is the same for all cryptocurrencies that nobody has the charge of this digital money and currency is only revealed on the digital ledger.
These Currencies Do Have a Real-World Use?
The cryptocurrencies have a large number of real-world applications. In the financial world, currencies met with success because of their cheap, quick, and restrictionless behavior of these currencies is the best alternative to service providers. However, blockchain is not restricted to the financial market.
Primarily, blockchain is not all about to register money transfer but also to put down the ownership information. It is written in a manner where a user can confirm any record at any time.
It enhances the security management and mostly uses in the record keeping terms. Healthcare, security, food, tourism, etc. are the real companies. They offer the products and most of them accept Bitcoin as a payment.
And How Can Digital Coin be Interpreted Into Real Solutions?
The government of any country doesn’t have hold of the digital currency Bitcoin.
A well-established infrastructure needs a homework. But, in case of Bitcoin, one might wonder how something this significant is apparently irrelevant. In addition, companies use the records on the public ledger. In that scenario, regular money doesn’t mean that. It is just a paper, issued by the countries’ government.
Accordingly, a digital record is more secure than a government promise. Whatever will happen in the world, few things will remain the same. So, blockchain will be the same as long as one person in the world is storing it on their devices. Blockchain’s ability to keep absolute records and add new without dependence on the third party whether it is government or a bank can deliver enormous values. Blockchain powered enterprises are born in that scenario.
From Where I Have to Start?
Use few available tools and create a business on your own. You just need a proper homework, team, secure funding and providing the services by developing the products. If you need help, a wide range of platforms is there.
Tags: best way to invest in bitcoin, bitcoin investment