Five predictions for digital currencies in 2018 — including stomach-churning drops, bitcoin-related IPO

Five predictions for digital currencies in 2018 — including stomach-churning drops, bitcoin-related IPO

  • More institutions will get into cryptocurrencies this year, analysts say.
  • They expect more regulation and bitcoin's price to drop, before recovering.
  • Stock investors may also get a chance to invest in a digital currency-related IPO.


After the bitcoin craze rose to a near-fever pitch

in the last several weeks of 2017, several investors and analysts in the space see more growing pains for cryptocurrencies this year. Here are these predictions for digital currencies,
based on those interviews:

More institutions will get into cryptocurrencies.

"Our institutional investor base is very interested in learning more and getting exposure," said Michael Graham, a Canaccord Genuity analyst who has published several reports on digital currencies. "One of our major themes is that as we roll out through 2018, it's the year of institutions getting exposure to the space." The number of institutional-level investment products related to bitcoin is increasing.

In addition to the CME and Cboe bitcoin futures that launched in December, Cantor Fitzgerald and Nasdaq are planning their own derivatives products. Analysts also expect regulators will approve a bitcoin exchange-traded fund in the second half of this year, or in early 2019. "With the regulated futures markets going live in 2017, the stage is set for ETFs to gain approval in 2018," Nolan Bauerle, director of research at CoinDesk, said in an email. "In fact, the Cboe filed for 6 cryptocurrency ETFs at the end of 2017 which could go live in 2018. This would dramatically increase how institutional investors can get exposure." The U.S. Securities and Exchange Commission declined to comment.

There will be more regulation and bitcoin's price will drop.

However, in the meantime, regulators will likely try to limit speculation in cryptocurrencies. In the last several months, the SEC has become increasingly vocal in warning investors about the risks of cryptocurrencies. The commission also has suspended trading in some companies due to concerns about their claims regarding their token-related announcements. "One of the things we'll see [is] enforcement here from the regulators," Canaccord's Graham said. He expects that greater regulation will cause a "major price dislocation event for the whole sector."

Bitcoin has soared more than 1,500 percent to near $16,200 over the last 12 months. But it is still down about 18 percent from its all-time high above $19,800 hit in mid-December. Meanwhile, smaller cryptocurrencies have surged hundreds of percent in the last several weeks, bringing the total market value of all digital coins to above $770 billion, according to CoinMarketCap. Action by regulators could halt those gains. Bitcoin fell more than $2,000 in September when China cracked down on digital currencies. Spencer Bogart, managing director and head of research at venture capital firm Blockchain Capital, expects that many cryptofunds will not be prepared to handle a monthly decline of 25 percent.

"I think we could easily purge 60-75% of crypto hedge funds in this type of market," Bogart said in an email. "In this environment, funds that can call capital and deploy it counter-cyclically stand to benefit significantly." More than 120 such funds opened in 2017 for a total of 175 funds, according to financial research firm Autonomous Next. In contrast to Bogart, Autonomous' global director of fintech strategy, Lex Sokolin, predicts the total number of cryptofunds will nearly triple to 500 this year. But he said the focus will be less on the number of funds and more on assets under management, which he expects to reach $20 billion.

It will be a wild, volatile ride. 

The contrasting views on the future of cryptofunds come as some analysts expect bitcoin to ride an even wilder wave this year. Ari Paul, chief investment officer of cryptocurrency investment firm BlockTower Capital, predicts that bitcoin will trade at both $4,000 and $30,000 at some point in 2018. One reason some analysts say bitcoin will ultimately rise further is that investors will bet on a payout from more splits in the digital currency. When some bitcoin developers decide to implement their own upgrade of the bitcoin network, bitcoin investors at the time of the split receive equal amounts of the split-off coin.

Aug. 1's split of bitcoin into bitcoin and bitcoin cash was "a change in the trend," said Ramon Quesada, a vocal member of Spain's cryptocurrency community. Developers "are using the brand bitcoin and they are splitting the main chain. They are making a fork. You create a new chain and you give a new name to this chain." Bitcoin trades near $16,200, while bitcoin cash trades around $2,600. "We think we're going to have more forks in 2018 than 2017," Canaccord's Graham said. "Ultimately we think those forks are going to be a short-term tail wind to bitcoin's value and a long-term headwind"  Bitcoin still faces many challenges, such as improving transaction fees and speed.

 Bitcoin will prevail, while other cryptocurrencies grow. 

While bitcoin's price has stagnated in the last two weeks, smaller digital currencies such as ripple, stellar and tron have surged into the ranks of the largest cryptocurrencies by market capitalization. Erik Voorhees, CEO of digital asset exchange ShapeShift, said that in contrast to bitcoin's dominance on the platform a year ago, about half of transactions on the platform now don't involve the popular digital currency at all. However, bitcoin should still benefit from the increased interest in the "alt-coins." Analysts also point out that since bitcoin is the most established digital currency, it is often the way new investors access the cryptocurrency space. "Bitcoin has such magnificent network effects that I don't see another alt-coin that's a little better at payments" or some other function right now, Autonomous' Sokolin said. "One of the top 10 will collapse."

Stock investors may get a chance to invest in a digital currency-related IPO.

As interest in digital currencies has grown, the companies involved with the business have become billion-dollar entities. Leading U.S. cryptocurrency marketplace Coinbase, valued at $1.6 billion, has indicated it could pursue an initial public offering.

"I do think the public is going to see some crypto-owned IPOs this year and more broadly blockchain IPOs," Canaccord's Graham said. He said cryptocurrency-related companies that want to give U.S. regulators a better impression are likely "going to rely on old-fashioned equity."But just as greater regulation in the U.S. has encouraged more blockchain development outside the country, the first crypto-related public offering may not happen in America either.

"IPOs are going to happen outside the U.S. first," said Ryan Gilbert, partner at Propel VC, which focuses on financial technology and has a $250 million fund. Propel is indirectly a minority investor in Coinbase, Gilbert said. Regardless, investors will need to be extremely cautious about companies making announcements related to cryptocurrencies and adding "blockchain" to their name. Some tiny stocks have soared on such changes, prompting regulators to issue warnings about potential scams. The market moves mirror the tech bubble, when many stocks saw a dramatic price surge after adding "dot-com" to their names.

A paper published in 2000 through Purdue University found the dot-com name changes began around June 1998 and picked up in the first five months of 1999, at an average rate of seven name changes a month. Most of the companies were traded over the counter, and regardless of their level of involvement with the internet, the name change resulted in returns of about 74 percent for the 10 days surrounding the announcement day, the paper said.

"What the dot-com paper shows is that reasoning goes away when you're looking at a hot industry," co-author Raghavendra Rau told CNBC in a phone interview this week. He is now a professor of finance at the University of Cambridge. If he had to guess, Rau said it may take at least two or three years for the blockchain stock mania to subside. "My personal sense is the technology is good, but like every new technology I don't think the broad pattern [of] history changes very much. There will be manias."

Chuck Reynolds


Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
Interested or have Questions, Call Me, 559-474-4614

David https://markethive.com/david-ogden

Off the Leash? Bitcoin Looks North After Breaking $16K

Off the Leash?
Bitcoin Looks North After Breaking $16K

Bitcoin is gaining altitude today, amid a sharp drop

in prices of some alternative currencies. Prices on CoinDesk's Bitcoin Price Index jumped 7 percent to an intraday high of $16,181 in the last two hours. The cryptocurrency has appreciated by 10 percent in the last 24 hours, according to data source CoinMarketCap.

Meanwhile, Ripple's XRP token has depreciated by 9 percent in the last 24 hours, having soared to new heights on Jan. 3. Other alternative currencies like NEM (XEM), Cardano (ADA) and Stellar (STR) are down at least 12 percent each. More importantly, the XRP/BTC (ripple-bitcoin) pair has taken a beating in the last couple of hours. XEM/BTC, ADA/BTC, ETH/BTC (ethereum-bitcoin) and LTC/BTC (litecoin-bitcoin) are also losing altitude.

So, bitcoin (BTC) seems to have caught a bid wave at $14,848.10 (07:29 UTC), tracking the weakness in the cross cryptocurrency pairs (ETH/BTC, LTC/BTC, XRP/BTC) – that is, money made from the altcoin rally is likely being channeled back into BTC. Price chart analysis also suggests BTC could extend the rally to $18,000-$18,600 in the short-run.

A chart (prices as per Coinbase) would show:

  • An inverse head and shoulder breakout. As of writing, BTC is trading well above the neckline hurdle of $15,550, so the bullish breakout is pretty much a done deal. Prices could rise to $18,600 (target as per the measured height method) over the weekend.
  • Other factors – including a breach of the falling trendline, a bullish break of the falling wedge, higher lows as represented by the rising trendline – also favor further upside in BTC.
  • The relative strength index (RSI) is above 50.00 (in the bullish territory) and rising, indicating scope for a rally in prices.
  • BTC could cut through resistance at $16,490 and move towards $18,000–18,600 mark over the weekend. Bearish scenario: A failure to hold above the neckline support (former resistance) of $15,500 followed by a break below $14,230 today would open the doors for a drop to sub-$12,500 levels.

Chuck Reynolds


Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
Interested or have Questions, Call Me, 559-474-4614

David https://markethive.com/david-ogden

Bitcoin price: CEO says cryptocurrency WILL surge in next 2 years as coin supply PLUMMETS

Bitcoin price:
CEO says cryptocurrency WILL surge in next 2 years as coin supply PLUMMETS

BITCOIN price is expected to rise for the next two and half years

as the supply of the cryptocurrency will decrease substantially, according to CEO of BTCC Bobby Lee.price will see a continuous surge for the next couple of years as the supply of the virtual coin continues to get smaller and smaller. CEO and co-founder of cryptocurrency exchange company BTCC, Bobby Lee, told Mr Lee said: “We just had a monster of a year in 2017, I think the price went up close to 20 times. Bitcoin will continue to surge for the next two years as supply will decrease to 900 coins a day

We just had a monster of a year in 2017

“What we do see is that things like this happen, this massive growth of bitcoin happens every three or four years. Most recently before that, it was 2013. “Every four years bitcoin the block reward goes down by half, we think there is a natural impetus for that to be more restriction and less supply. “With less supply, the price seems to go up, especially with more investment in this area.”

Bogart: Bitcoin could top record levels of $50,000 in 2018. Mr Lee added: “Today we're at only 1,800 of newly mined bitcoin of every day. That used to be 7,200 as recently as five years ago. “So in just a few short, maybe two and a half more years, we'll see the supply go down again to only 900 bitcoins a day. "So if you talk about multi-million dollars of inflow with an only new supply of 900 bitcoins a day, you can imagine where prices could be at in three, five, or 10 years.”Economic experts share Bitcoin opinions

Is Bitcoin's bubble about to burst?

JPMorgan Chase head Jamie Dimon is one of Bitcoin's harshest critics. Bitcoin expert Spencer Bogart said he is confident the cryptocurrency will “evolve” and “mature” to eventually become a deep market for investors. Mr Bogart said the Bitcoin price will rise with the help of institutional investors. He told CNBC: “Institutional investors that want to play in this market, even if they do, they are going to wait a little bit and either dip their toes in the water or just wait on the sidelines until they see the products themselves function.” 

Bitcoin price has been stable since the start of the new year. According to CoinDesk at 1:45 pm on January 4, the cryptocurrency is valued at $14,555.85. Technology investor Glenn Hutchins has claimed the bitcoin price is a distraction. The Silver Lake Partners investor said he is far more excited by the broader cryptocurrency ecosystem than he is the dramatic price of bitcoin. He told the Financial Times: “I just really think people are missing the point. “They should be talking about the companies. Bitcoin could turn out to be the winner; it could also turn out to be Betamax.”

Chuck Reynolds


Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
Interested or have Questions, Call Me, 559-474-4614

David https://markethive.com/david-ogden

Bitcoin Exchanges seeking clarity over levy of GST

Bitcoin Exchanges seeking clarity over levy of GST

Bitcoin Exchanges seeking clarity over levy of GST

MUMBAI: Are Bitcoin exchanges required to pay goods and services tax? If they are, what would the rate be? And, will GST be levied on the revenues or operating margins of these exchanges?

India's top seven Bitcoin exchanges, which include Zebpay, Unocoin, CoinSecure and BtcxIndia, plan to approach the Advance Authority of Ruling (AAR) for clear answers to these questions, two people with direct knowledge of the matter told ET. AAR is a quasi-judicial body that can decide the applicability of tax rates.

"At least one Bitcoin exchange has already filed an application with the Maharashtra AAR for future tax liability," said one of the persons cited above. "The tax department is currently researching the concept as Bitcoins are a very complex subject." Zebpay, Unocoin, CoinSecure and BtcxIndia didn't respond to queries.

For the exchanges, the rate could depend on what the authorities deem Bitcoins to be — goods, services or currency. If Bitcoin is held to be a currency, there will be no GST. If it's a good, then tax of 18% could be levied, and 12% if deemed to be a service.

"The question for many Bitcoin players is whether GST is applicable on the total revenue or on the margins they earn," said Abhishek A Rastogi, partner at law firm Khaitan & Co. "This is mainly because the tax authority must give clarity on whether Bitcoin exchanges are selling goods and services, or are mere trading platforms that earn margins."

AAR DECISION TO DEFINE BIZ MODEL FOR BITCOIN EXCHANGES

According to another government official, who has reviewed the balance sheets of Bitcoin players, their size is quite substantial. "The combined revenue of top seven players would be around Rs 40,000 crore and they operate at about 20% margins," the official said. "In most cases, whenever there is a 'buy' or a 'sell' order on their platforms, these exchanges charge huge differences, in the range of about Rs 1lakh." ..

If that's the case, the indirect tax department could be looking at potential revenue of up to Rs 7,200 crore (if GST is levied at 18%). AAR's decision will also help establish the business model for Bitcoin exchanges in India, defining the category for cryptocurrencies — goods, services or currency.

"The option of proceeding with advance rulings under GST should be exercised to enable clarity on future tax treatment, more so in cases where existing tax positions are untested," said MS Mani, partner, Deloitte India. Industry insiders said Bitcoin players, including Indian exchanges, earn their revenue through commissions, transaction fees, or price-arbitrage opportunities. Most of the exchanges allow trading of various cryptocurrencies besides Bitcoins.

Experts said some Bitcoin exchanges have not been forthcoming with their data and have not paid any sales tax or VAT until now. One of the persons cited above said some exchanges had submitted different revenue figures to the sales tax and VAT authorities. "When we compared the annual results and explanations submitted to the sales tax and VAT authorities, they were diametrically opposite," he said.

Bitcoin is the most popular cryptocurrency that allows online payments between individuals without the involvement of middlemen or financial institutions. Bitcoin prices lost about 4% Thursday evening, and were trading at $14,546 a unit, Coindesk data showed.

 

Author: Sachin Dave ET Bureau|Updated: Jan 05, 2018, 10.30 AM IST

 

Posted By David Ogden Entrepreneur
David ogden cryptocurrency entrepreneur

David https://markethive.com/david-ogden

Use of Tor in Iran Is at an All-Time High Amid Political Struggles

Use of Tor in Iran Is at an All-Time High Amid Political Struggles

More and more consumers need to start taking their privacy seriously.

Especially when it comes to using the internet, there’s no reason to expose sensitive and personal information to third parties. With the use of VPNs and Tor on the rise, an interesting trend is created. Especially in Iran, reliance on Tor is skyrocketing as we speak. Given the political turmoil in that part of the world, this is no real surprise.

Iran Starts Flocking to Tor for Political Reasons

There are many reasons why people would start using Tor or a VPN connection to mask their online activity. While some people may think this always has to do with illegal activity, that is far from the case. In fact, the number-one reason for using such tools is simply to ensure privacy for all online activities and keep information away from prying eyes such as the government and internet service providers. After all, we should never give up such information either willingly or unwillingly.

At the same time, governments all over the world are cracking down on such tools. Especially in countries with oppressive regimes, there is a growing concern over the use of Tor and VPN connections. After all, such governments don’t want their residents to have any freedom of speech whatsoever, even though it is a basic human right in the eyes of most internet users. Restricting access to specific websites and platform has become the new normal in some places. China is a good example of such political interference.

It seems things are slowly evolving in this direction in Iran as well. More specifically, the public has protested against some decisions made by their country’s government in recent months. When such turmoil comes to light, the first step oppressive governments tend to take is ensuring no one can voice any public concerns over the situation. That often involves restricting access to social media and other platforms on which anyone can share their opinions on these sensitive topics.  

However, restricting access to platforms such as Instagram, Telegram, and a few others is almost never the answer (though one would expect the Iranian government to know better by now). Furthermore, the government started blocking access to Tor in August 2016, even though its efforts seem to have been less successful than originally anticipated. In fact, they have backfired.

Whereas the number of people connecting to Tor was relatively low in December 2016, it increased significantly starting in March 2017. A spike appeared on the charts in December 2017, and the current protests will only make more people flock to tools such as Tor. That is only normal, as people want to access the blocked social networks first and foremost.

Whether or not we will see a further increase in Tor usage across Iran remains to be seen. It is evident the government will not be too pleased with the way things are unfolding right now, especially considering that it tried to block Tor in the past without much success. It seems unlikely that it will crack down on this tool any further, although anything is possible at this point. Even so, there is still the option to connect through a bridge if needed, which would bypass most restrictions.

Chuck Reynolds


Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
Interested or have Questions, Call Me, 559-474-4614

David https://markethive.com/david-ogden

‘Blockchain’ Mentions in Press Releases Have Soared This Year

‘Blockchain’ Mentions in Press Releases Have Soared This Year

 

 
  • Word appeared in 110 releases in 2018, up from five a year ago
  • It’s part of the frenzy surrounding all things cryptocurrency

If you want to create the next hot stock, just say the magic word: blockchain. In the four days since the start of the year, there have been more than 110 corporate releases that contain the word “blockchain,” data compiled by Bloomberg shows. That’s up from five in the same span last year. The surge in citations comes amid a frenzy surrounding cryptocurrencies following bitcoin’s 1,400 percent gain last year. Companies mentioning the term often see their stock jump, with some even renaming themselves despite having no ties to blockchain in their businesses.

Long Island Iced Tea Corp., for instance, soared as much as 289 percent Dec. 21 after rebranding itself Long Blockchain Corp., while Hooters franchisee Chanticleer Holdings Inc. rose 41 percent Tuesday after announcing plans to start a blockchain-based customer loyalty program. However, there is a question over how much longer this can last, and analysts and investors continue to warn of a bubble in bitcoin. Warren Buffett, GMO’s Jeremy Grantham and even bitcoin-bull Mike Novogratz have urged caution.

Government Think Tank to Trial Blockchain Verification in India

An Indian government policymaking body is eyeing the potential applications of blockchain technology across various sectors.As part of that process, the National Institution for Transforming India, known as NITI Aayog, is developing a proof-of-concept to explore blockchain in key sectors including education, health and agriculture, the Economic Times says. An anonymous senior government official reportedly said that blockchain's promise in secure document verification is the primary reason for potential adoption of the tech.

The move comes after the think tank conducted a hackathon in November 2017 on the use of blockchain technology – an event jointly organised with Harvard-based blockchain startup Proffer. While India's government has been largely skeptical on cryptocurrencies, it has looked on blockchain technology more favorably. In June 2017, several regional governments in India, including Andhra Pradesh, revealed they were looking into applications of blockchain technology in land registries – systems used to keep track of who owns which properties. Further, in September of last year, India's central bank research group announced plans to launch a new blockchain platform to build and support a range of banking-related services.

Chuck Reynolds


Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
Interested or have Questions, Call Me, 559-474-4614

David https://markethive.com/david-ogden

BITCOIN PRICE – LIVE UPDATES: CRYPTOCURRENCY VALUE RECOVERING AFTER HEAVY RECENT SLUMPS

BITCOIN PRICE – LIVE UPDATES: CRYPTOCURRENCY VALUE RECOVERING AFTER HEAVY RECENT SLUMPS

The value of bitcoin appears to be recovering after a tumultuous period for the cryptocurrency.

After hitting a new record high when it passed the $19,850 mark in mid-December, it tumbled rapidly, falling to below $12,000 within days.

It has been constantly rising and falling ever since, and is worth $14,932 as of Wednesday afternoon UK time, according to the Coinbase exchange.

That’s a significant improvement on yesterday, when it almost slipped below the $13,000 mark. However, earlier this morning it had been worth more than $15,370.

Its value is up more than 30 per cent over last month and more than 1,320 per cent over the last year, but recent goings-on have demonstrated just how quickly the situation can change.

The cryptocurrency’s value fell dramatically just ahead of Christmas, dropping by almost $2,000 in just an hour at one point, and almost slipping below the $11,000 mark.

Bitcoin is notoriously volatile, and its value is expected to continue to shift unpredictably. Its rise has also led to increasing amounts of interest in alternative cryptocurrencies, such as ethereum, litecoin and XRP.

Those fluctuations have caused problems with actually using bitcoin, with Steam recently announcing that it won’t be able to take it any more and multiple exchanges saying the huge amounts of trading is leading to problems with actually transferring them.

Naturally, its spectacular rise has coincided with increasing amounts of interest, with more and more people now looking to invest.

However, there are serious fears that bitcoin has created a bubble that could burst at any moment.

Numerous financial experts are advising potential investors to avoid getting involved with bitcoin, though others are speculating that it could keep rising towards the $1m mark.

Bitcoin only exists online, has no central bank and isn’t linked to or regulated by any state.

An anonymised record of every bitcoin transaction is stored on a huge public ledger known as a blockchain.

However, transactions made with the cryptocurrency are irreversible, which makes investors in bitcoin attractive targets for cybercriminals.

 

Author AATIF SULLEYMAN

 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency entrepreneur

David https://markethive.com/david-ogden

Cryptocurrency boom: Why everyone is talking about ripple

Cryptocurrency boom:
Why everyone is talking about ripple

The craze over bitcoin has given other crypotcurrencies like litecoin and ethereum their moments in the spotlight. Now, it's ripple's turn.

In recent weeks, ripple's value has spiked, making it the second most valuable digital currency and bringing it newfound attention. The relatively obscure cryptocurrency, also known as XRP, is now worth about $2.60 with a market cap of more than $100 billion, according to Coinmarketcap. In early December, it was trading at just 25 cents. Even with the spike, ripple is worth considerably less than bitcoin. After a tumultuous December, bitcoin was trading around $15,000 late Tuesday with a market cap of more than $250 billion.

What's different about ripple is it's controlled by just one company, San Francisco-based Ripple. There are reports of current and former Ripple executives becoming cryptocurrency billionaires from its recent boom. Ripple launched in 2012 to facilitate global financial transactions. It differentiates itself from other digital currency platforms by its connections to legitimate banks. Companies that use the Ripple platform include Santander (SANPRA), Bank of America (BAC) and UBS (UBS).

 In recent weeks, financial services companies in Japan and South Korea have adopted Ripple's technology, helping boost the price of the cryptocurrency. According to Stephen Powaga, head of research at investment firm Blockchain Momentum, ripple and other some other cryptocurrencies have relatively low transaction fees, which made them popular when people began looking for alternatives to bitcoin. But unlike Bitcoin, ripple isn't created, or "mined," by users. The company has control.

It created 100 billion ripple coins initially, and 38 billion of them are in circulation at the moment. Ripple management can release up to 1 billion coins per month, which Powaga predicts could oversaturate the market. North & South Koreans are OBSESSED with bitcoin."It's somewhat concerning for me because if they chose to release them as quickly as possible, within a little over four years, you'd see more than a doubling of supply of ripple," he said.

That could put pressure on its price.

"I'm not certain that some of the newer market participants are fully appreciating the potential for inflation," Powaga said. Cross-border payments that can take hours with bitcoin or days with traditional financial transactions can go through in a matter of seconds with ripple, the company says. Like bitcoin, ripple's payment network, RippleNet, uses blockchain technology. A blockchain is a public ledger containing transaction data from anyone who uses the service. Transactions are added to "blocks," or the links of code that make up the chain, and each transaction must be recorded on a block.

Chuck Reynolds


Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
Interested or have Questions, Call Me, 559-474-4614

David https://markethive.com/david-ogden

Ripple cryptocurrency hits a record high and now a market capitalization of more than $110 billion

Ripple cryptocurrency hits a record high and now a market capitalization of more than $110 billion

  • Ripple, the world's second-largest cryptocurrency by value, hit an all-time high above $2.90 on Wednesday.
  • It marks a more than 45,700 percent rally in one year, according to CoinMarketCap.
  • Ripple works with large enterprises and deals with large financial institutions, which has helped its digital coin, known as XRP, rally

Ripple, the world's second-largest cryptocurrency by value,

  • hit a record high on Wednesday as its strong rally continues.

The digital coin jumped more than 18 percent to an all-time high above $2.90, according to CoinMarketCap. Ripple, or XRP, now has a market capitalization of $112 billion and remains solidly in second place to bitcoin, which has a market value of about $255 billion, according to CoinMarketCap. The website showed ripple has gained more than 45,700 percent over the last 12 months.

Ripple 12-month performance

The digital coin has climbed more than 120 percent over the last week, according to CryptoCompare.

What is ripple?

Unlike bitcoin, Ripple is a company that has created coin known as XRP that is aimed at enterprises. Ripple markets itself as a cross-border payments solution for large financial institutions based on blockchain technology.Currently, an international payment may take a few days to complete, and at a high cost. A headache for banks is high-volume, but low-value, transactions — the kind that Facebook might pay out to app makers, for example. These can often be expensive and unprofitable for banks because it takes a lot of effort to move the money and the percentage cut won't be as high as for a larger transaction.

Ripple is trying to solve this problem via its technology. XRP can be used by enterprises to get instant liquidity needed in a high-value transaction, without having to pay fees. XRP acts as a bridge between fiat currencies during a transaction. Ripple said transactions in XRP can be settled in four seconds, faster than any major cryptocurrency right now.

Why is it rallying?

Ripple has been conducting trials with a number of financial institutions, including American Express and Santander. Its price was also helped by news in December that Japan's SBI Holdings and SBI Ripple Asia, which was formed as a partnership between the two firms in 2016, created a consortium with Japanese credit card companies to utilize blockchain.

Blockchain is the technology that underpins cryptocurrencies, including Ripple.There is also a sense that investors are looking at alternative digital tokens beyond bitcoin. Bitcoin's dominance of the cryptocurrency market hit its lowest level ever on Tuesday, according to data from Coinmarketcap.com.

Chuck Reynolds


Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
Interested or have Questions, Call Me, 559-474-4614

David https://markethive.com/david-ogden

Bitcoin rises 10% on Peter Thiel fund’s likely holding; may revisit December high

Bitcoin rises 10% on Peter Thiel fund's likely holding; may revisit December high

Bitcoin rises 10% on Peter Thiel fund’s likely holding; may revisit December high

Bitcoin prices advanced over 10 per cent in two trading sessions after The Wall Street Journal reported Peter Thiel's Founders Fund has amassed hundreds of millions of dollars of the volatile cryptocurrency.

The report further said that the fund bought $15 to $20 million worth of the cryptocurrency and multiplied the principal investment by over 5 times.

Bitcoin jumped to $14,951 on January 3 from $13,354 on January 1. During the period, the digital currency hit a high and low of $15,300 and $12,787, respectively.

Peter Thiel is an entrepreneur and investor. He started PayPal in 1998, led it as CEO, and took it public in 2002, defining a new era of fast and secure online commerce. He is a partner at Founders Fund, a Silicon Valley venture capital firm that has funded companies like SpaceX and Airbnb.

According to another report, vice president of Group Nduom, Papa-Wassa Chiefy Nduom has advised the Bank of Ghana to expand its investment by putting some of its funds in bitcoin.

He further advised the bank to put around 1 per cent of Ghana's reserves in bitcoi

According to Reuters, bitcoin may revisit its December 17, 2017 high of $19,666 in three months, as suggested by its wave pattern. The deep correction from this high has been driven by a wave (4), the fourth wave of a five-wave cycle from the July 16, 2017 low of $1,830. This wave is expected to be totally reversed by an upward wave (5).

Back home, bitcoins or such cryptocurrencies are not legal tenders and those indulging in such transactions are doing it at their own risk, Finance Minister Arun Jaitley said on Tuesday as several members expressed concerns over trading on these platforms.

Source India Times

 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

David https://markethive.com/david-ogden