2 min read
Bitcoin is the future, Fiat is past!
Why not start with these words? Popular VC Tim Draper said it. And we all know how good he is in his predictions. In 2014 with bitcoin at only $413, popular VC, Tim Draper predicted bitcoin to reach $10,000 in three years. This was fulfilled a month earlier. This prediction brought him a great reputation among crypto fans and followers. He also predicts a $100k Bitcoin in 2018, not categorically but anyway.
Let assume this growth happens at the same tempo as the 3-year journey to $10k. But that’s precisely how Draper feels about Bitcoin prospects and he understands a lot about bitcoin’s foundation.
WOW, then we’re in for six digits.
Many of the investors are actually currently worried due to the high volatility in cryptocurrencies.
Is there any reason for that?
A cryptocurrency portfolio manager Jeet Singh, stated at World Economic Forum in Davos, that the current volatility is completely normal when it comes to the cryptocurrencies field. He stated that it is normal for cryptocurrencies to fluctuate by 70% to 80% and that is the main reason why the current volatility does not worry him at all.
Is there a fear of volatility?
But, according to him, long-term investors need not fear the volatility at all. Because they are here to stay for a longer period of time, they would not have a problem to hold the cryptocurrencies for a longer period of time.
Jeet Singh compared cryptocurrencies with current leading companies like Microsoft and Apple. In the beginning, their stocks were also volatile. But, as the companies develop their business model, the stocks not only rose but they become much more stable.
He further added that Bitcoin would reach as high as $ 50,000 this year. That means, If the current price of Bitcoin being around just $ 10,000, that would be a fivefold increase once again.
What is really happening on the markets?
The world’s largest crypto brokerage Coinbase is reportedly close to finalizing a $500 million funding round at a valuation of $8 billion. And Binance has started to become more active in the investment sector, funding blockchain startups internationally.
While major cryptocurrency exchanges like Coinbase, Binance, and BitMEX are seeing their businesses flourish with lucrative business models and high-profit margins, minor exchanges are struggling in the bear market.
This week, the UK’s oldest exchange, Coinfloor, has slashed the number of its employees. After recording a decline in its revenues as a consequence of the drop in the daily trading volume of major cryptocurrencies.
Also, the emergence of many cryptocurrency exchanges in the local market causes this.
But Coinbase entered the local cryptocurrency exchange market of the UK. This has stagnated over the years due to the lack of infrastructure and user demand. It was eliminating exchange rates and appealing to local users that have been awaiting a reliable cryptocurrency exchange in the region.
In South Korea, a cryptocurrency exchange backed by the country’s biggest commercial banks. Internet conglomerates, and technology corporations such as Upbit, Gopax, and Korbit have imposed dominance over the local market throughout the past two years.
The fact that an exchange in the size of Coinfloor cannot sustain high-cost operations demonstrates that they need strong infrastructure and backing from major investors and conglomerates.
On Monday, 8. October, practically all the top 100 cryptocurrencies are seeing reliable growth on the day.
Ups and Downs
Bitcoin (BTC) has seen a strong boost, by press time growing almost 2 percent on the day to trade solidly above the $6,600 mark at $6,664.
The breakthrough to a higher price point comes after several days of sideways trading. One crypto trader joked just a few days before, he said that bitcoin decided to be the ultimate stablecoin.
That same day, a Bloomberg pointed up the top coin’s marked price stability, proclaiming that Bitcoin had “hit an inflection point with volatility at a 17-month low.” The flipside to such steadiness, the Bloomberg noted, is lower trading volumes, due to lower “speculative involvement.”
On its weekly chart, Bitcoin is now just over one percent in the green, with monthly growth a strong 8 percent.
Ethereum is around 0.6 percent in the red; monthly growth is close to 17 percent.
Ripple had however tapered off throughout most of early October: the token remains a stark 14.5 percent in the red on its weekly chart. But on the monthly base, its gains are, an astonishing almost 70 percent.
The remaining top ten coins on CoinMarketCap are all in the green, almost all-seeing between 2 and 4 percent growth: Cardano (ADA) is uprising almost 5%. Firmly in the green: EOS (EOS) is up close to 4 percent on the day at $5.92, Stellar (XLM) and Litecoin (LTC) both up just over 2 percent.
Most of the investors are keeping away from the cryptocurrency boom for now. Many of them are just holding their holdings in order to find out whether the cryptocurrencies resume their uptrend or not.
We may say it is still too doubtful for most of the investors to take a call.
But the fact is, institutions are increasing their presence in the cryptocurrencies field. That would add value and credibility to the cryptocurrencies in the future. That’s why we can’t see further falling. The main point is that regulatory hurdles have to be sorted.
After that, we all can be sure that the value of cryptocurrencies would again more.