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Bitcoin, Ethereum & Co: Will We Ever Use Crypto Coins to Pay?

Like most of the markets, the cryptocurrency market also faced a massive drop because of the global Covid-19 pandemic in March 2020. Different from the other markets, cryptocurrency markets recovered from this massive drop really quickly and cryptocurrency’s total market cap nearly rose 20 times of its value compared to March 2020. During this process,…

The post Bitcoin, Ethereum & Co: Will We Ever Use Crypto Coins to Pay? appeared first on Cryptoverze.

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Like most of the markets, the cryptocurrency market also faced a massive drop because of the global Covid-19 pandemic in March 2020. Different from the other markets, cryptocurrency markets recovered from this massive drop really quickly and cryptocurrency’s total market cap nearly rose 20 times of its value compared to March 2020.

During this process, especially in the start of 2021, the popularity and the demand for cryptocurrencies had a huge impact and people started to argue if the cryptocurrencies will be a payment method in the future or even beat up other fiat currencies. We have already seen some companies like Tesla accepting Bitcoin as a payment method, Visa supported cryptocurrency cards used in payments, some online casinos like Ethereum Casinos where you can use Ethereum instead of a fiat currency while depositing to the website.

Increase in Popularity

As mentioned above, in the last year cryptocurrencies massively grew and starting from 2021, its popularity increased a lot. There are already thousands of different cryptocurrencies/coins in the market and we see new coins are being listed in the different markets. Since we can consider those new, upcoming coins as a new project, we see that after they get listed, the coins’ prices are most likely to increase which creates a big demand in the developing countries like Nigeria, Vietnam, Philippines, Turkey etc.

During the rally, nearly all of the cryptocurrencies are making massive gains in their coin/USD parity which caused multiple gains for the users who use weak currencies against the US Dollar, like Turkish Lira. Moreover, in addition to the increase in popularity among individuals, some corporate companies also started to see Bitcoin as an investment tool which created a more optimistic expectation for the future of cryptocurrencies.

Increasing Sustainability

The increase in the demand for cryptocurrencies also caused an increase in the transactions that are being made and more miners are needed for this in order to record the transactions because as a result of this process, the miners receive their payment as cryptocurrencies.. However, the mining process requires lots of electric consumption and it is not sustainable until renewable energy is used in the mining process.

As the climate crisis is one of humanity’s biggest concerns, being not sustainable could be the end for cryptocurrencies. However, some cryptocurrencies, like Ethereum, changed the method of the coin’s generation from mining to staking. Staking is a way of participation on a crypto’s blockchain by using your coins to validate other transactions. As a reward of this, the users who stake their coins get more coins. Unlike mining, staking barely requires any electricity and produces less heat, which makes it way more sustainable than the mining method. Thanks to the methodological developments like this, cryptocurrencies are ensuring that they will have a steady place in the future.

Advantages and Disadvantages

Many crypto enthusiasts see Bitcoin as the leader of the crypto market and it is not really wrong to say according to cryptocurrencies’ market caps. When we look for the advantages of Bitcoin over the fiat currencies, we see that the supply of Bitcoin is fixed and this makes it less vulnerable to hyperinflation. However, this doesn’t imply that it is a pure advantage of Bitcoin because this situation can cause deflation, which causes other problems according to economic theory.

The second claimed advantage is that all the Bitcoin transactions are recorded anonymously and because it is decentralized, those records cannot be edited by anyone. Also, the transactions are encrypted in the blockchains in order to sustain its anonymity. Yet again this doesn’t mean that it is a pure advantage. Because it is decentralized, there is no institution to ask for help in a case of fraud or etc. which makes Bitcoin or other cryptocurrencies to seem “trustless” compared to banks or stock markets but there are several ways of protecting your cryptocurrencies.

When we talk about its disadvantages, we see that according to economic theory, money has three functions: a medium of exchange, a store of value and a unit of account. Bitcoin is an excellent exchange medium thanks to its blockchain system and anonymity but using it for other transactions gets more expensive as the value of Bitcoin gets higher.

During 2020, it ranged from 28 cents to 13.41 dollars. Also, because it is a relatively new technology compared to banks, it requires more technological awareness, which makes it hard especially for older generations. Because of this, most of the traders or cryptocurrency users use a third party provider and there have been several cases where the users got scammed by their providers.

Furthermore, the usage of Bitcoin as a store of value is limited by its volatility because its price is continuously growing up in massive percentages compared to other currencies. For example, in 2011 you could buy a pack of ramen with 1 Bitcoin on the other side in 2020 you can nearly open a ramen factory with 1 Bitcoin in several countries. So, in this case it makes more sense to hold your Bitcoins or other cryptocurrencies instead of spending it and this turns the cryptocurrencies into an investment tool instead of a daily used value.

Conclusion

To sum up, the popularity and the demand for the cryptocurrencies increased a lot in the last year and it is more likely to increase in the following years. Like all the other inventions or developments, it will be hard for the society to embrace it and it will take some time. However, if the needed conditions are met, the infrastructure is set for this transformation.

It wouldn’t be a dream that Bitcoin or Ethereum or any other cryptocurrency will take over fiat currencies. The corporates already started to consider Bitcoin as an investment tool and some companies are accepting Bitcoin as a payment method. As it gets more popular, the trust for the cryptocurrencies will increase, so that their usage and validity will increase. 

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptoverze.com/bitcoin-ethereum-co-will-we-ever-use-crypto-coins-to-pay/

Blockchain

Unlock of GBTC Shares Could Led Bitcoin to $25 Mark Says JPMorgan

JPMorgan analysts have predicted that the unlocking of GBTC shares could raise the selling pressure and drive the price of Bitcoin to the level of $25K.

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JPMorgan analysts have predicted that the unlocking of GBTC shares could raise the selling pressure and drive the price of Bitcoin to the level of $25K. JPMorgan revealed in their latest memo that though BTC has recovered slightly, the unlock will drive the price down to $25K.

JPMorgan Says GBTC Shares Unlocking Will Push Bitcoin Down Further

The Nikolaos Panigirtzoglou led global investment bank JPMorgan has recently displayed a contentious attitude to the flagship currency.

The analysts at JPMorgan always have an eye on what role the largest crypto asset manager, Grayscale is playing in relation to Bitcoin. 

At the beginning of this year, the analysts predicted that there are chances that the price of BTC might march towards a correction as a reduction in the inflows to the Grayscale Bitcoin Trust has been witnessed.

As revealed in the newly released memo by Bloomberg, JPMorgan has predicted another bear signal in the market involving GBTC, talking about the shares unlock of the BTC tracking fund.

The institutional investors that are employing the services of Grayscale will be obtaining access to 16K bitcoins in a single day in the month of July.

Will BTC Touch $25K

Bitcoin plunged to its lowest price levels just days ago below the area of $29K, though it managed to acquire some ground since that point and at present, it is changing hands at $32K.

JPMorgan analysts are eyeing another fall in the price of Bitcoin, and they wrote:

“Despite this week’s correction, we are reluctant to abandon our negative outlook for Bitcoin and crypto markets more generally. Despite some improvement, our signals remain overall bearish.”

In addition to this, they revealed that they believe the price of BTC is close to being overvalued, which is apparent from the comparison between its fluctuations versus that of gold.

READ  Bitcoin is the Most Dominant Digital Property Network: Michael Saylor

#Bitcoin #GBTC Shares #JPMorgan

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.cryptoknowmics.com/news/unlock-of-gbtc-shares-could-led-bitcoin-to-25-mark-says-jpmorgan

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Number of Active Bitcoin Addresses Drops Lowest Level Since Last Year

The number of active Bitcoin addresses seems to have dropped significantly below 900,000 in June 2021 which is the lowest level since July 2020.

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The number of active Bitcoin addresses seems to have dropped significantly below 900,000 in June 2021 which is the lowest level since July 2020, according to data published by Santiment, the crypto analytics platform.

Active Bitcoin Addresses Drops Since July 2020

Amid the ongoing bearish market trend, Bitcoin traders remain hesitant to pumping up their bags as the digital asset dropped below $30,000 during this week. Since then, the cryptocurrency has recovered some of its lost gains to jumping up above $34,000.

However, bears are back to gripping the flagship cryptocurrency yet again by making the digital asset drop down below $32,500 today.

With the bearish sentiments, the total number of active Bitcoin addresses has reached below 900,000 in June 2021, which is the lowest level since July 2020, according to data published by Santiment, the crypto analytics platform, adding:

READ  JLR Initiates Program To Offer Cryptocurrency To Drivers

“Bitcoin is back at $32.4k after a rebound above a $34.6k high Wednesday. What remains to be seen is an uptick in address activity. On the 30-day rolling scale of daily active address scale, July 13, 2020, was the last time the BTC network was this low,”

At the same time, Bitcoin’s fear, uncertainty, and doubt (FUD) remain high as highlighted by Santiment:

“Bitcoin’s fear, uncertainty, and doubt (FUD) remain high, as traders are polarized on whether prices can push back below $30k again. For now, though, prices have jumped back on crowd fear. Markets move in the opposite direction of crowd expectation.”

Falling Addressees Indicates Bearish Undertone

The number of active Bitcoin addresses is a sign of market demand for on-chain transactions, settlement, and the urgency for inclusion in an upcoming block on the blockchain. A falling Bitcoin active address figure indicates a bearish undertone in the space.

READ  ROI Of Ethereum To Crush Yearly Return Of Bitcoin, Crypto Traders Predict

For instance, in 2017, Bitcoin saw a high above $19,587 on December 16 to below $6900 on February 5, 2018, the number of active addresses also fell from 1.284 million on December 14, 2017, to just 528,000 on February 25, 2018.

At the same time, studies show that not all Bitcoin whales were affected by the price drop. In the past 25 days, Bitcoin addresses holding 100 to 10,000 BTC added a total of 90,000 BTC, accounting for nearly half of BTC’s circulating supply.

#Bitcoin #Bitcoin Address #BTC

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.cryptoknowmics.com/news/number-of-active-bitcoin-addresses-drops-lowest-level-since-last-year

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Blockchain

Major Price levels for Bitcoin and Ethereum, What’s Next for BTC and ETH?

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The post Major Price levels for Bitcoin and Ethereum, What’s Next for BTC and ETH? appeared first on Coinpedia – Fintech & Cryptocurreny News Media| Crypto Guide

After a large loss, cryptocurrency markets rallied back yesterday, with Bitcoin and Ethereum up 15% and 17%, respectively, after a big decline. El Salvador’s president, Nayib Bukele, recently released rendered graphics of a planned Bitcoin mining unit that would be powered by the country’s active volcanoes (the thermal energy generated from volcanoes can be converted …

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After a large loss, cryptocurrency markets rallied back yesterday, with Bitcoin and Ethereum up 15% and 17%, respectively, after a big decline. El Salvador’s president, Nayib Bukele, recently released rendered graphics of a planned Bitcoin mining unit that would be powered by the country’s active volcanoes (the thermal energy generated from volcanoes can be converted into electricity, and in turn be used to power mines). 

Even though Major of the coins seem to have bounced back yesterday, the move did not last that long and bears took incharge once again.

Yesterday, however, as sellers sold into strength, prices retraced the whole rise. Traders took advantage of the majority of cryptocurrencies’ oversold circumstances. After the shakeout, which pushed Bitcoin’s price to over $30,000, buyers were active.

Bitcoin and Ethereum Price Levels

Bitcoin managed to recover off the $28,800 support and close the candle in a bullish ‘hammerhead’ pattern. (A hammer candlestick pattern is a form of bullish reversal pattern.) The next level of resistance is around $36,600. Unless the price increase is followed by a volume influx, a rejection in that area is possible. 

After appearing to have bottomed out, the relative strength index (RSI) has also risen sharply. After yesterday’s dip, the positive buyback demonstrates the buyer’s interest in bitcoin. 

However, the pricing remains to be in the $30,000 to $38,000 range.

The price of ETH stayed well above the 200MA and climbed back above $2,000 with ease. A daily close above $2,000 would be advantageous and might lead to good price movement in the days ahead. 

The next point of resistance for ETH is around $2,100, where it is expected to be rejected. However, volume is minimal, and a volume push is needed to keep the price trend going.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://coinpedia.org/altcoin/major-price-levels-for-bitcoin-and-ethereum/

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Bitcoin in uptrend but BTC may never beat gold’s $10T market cap — ex-NYSE head

Thomas Farley, former chief operating officer of the New York Stock Exchange, is “sanguine” about recent price action.

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Bitcoin (BTC) is on a “lower left to upper right trend” and its volatility should not scare investors, the former head of the New York Stock Exchange says.

In an interview with CNBC on June 23, Thomas Farley revealed long-term convictions about Bitcoin and dismissed concerns over BTC price losses.

Bitcoin: Going up, but not “up only”

Coming a day after CNBC pundit Jim Cramer admitted that he sold his Bitcoin stash, suggesting that BTC/USD was going as low as $10,000, Farley provided some much-needed mainstream bullishness.

“With respect to the recent price moves, I’m kind of sanguine about them — Bitcoin’s a very volatile asset class, in part because it’s a new asset class,” he told the network.

“I have no doubt it’ll go up, it’ll go down over the long term — I still think it’s a lower left to upper right trend and I think we’re going to see that play out over five years.”

With mining upheaval coming from China still on everyone’s lips, popular mainstream criticism of Bitcoin’s energy usage was also swiftly cast aside as a temporary issue.

“I think this kerfuffle is an interesting conversation, but by and large I think it’ll be resolved because I think the blockchain at its core adds to its efficiency and in fact will add to energy efficiency over time,” he continued.

Less convinced on gold. vs. Bitcoin

When it comes to Bitcoin as “digital gold,” however, Farley was more conservative in his predictions.

Now firmly beneath a trillion-dollar market cap, Bitcoin must transform in order to take on store-of-value safe-havens.

Related: Joining the ranks: Bitcoin’s correlation with gold and stocks is growing

“I think the upper bound for now is gold, which is about a $10 trillion market cap,” he added.

“In order for Bitcoin to one day exceed gold, it’ll have to be more of an accepted form of currency — I’m not sure, frankly, if it ever gets there.”

Proponents argue that Bitcoin, by its very nature, faces just a matter of time before eclipsing gold thanks to the latter’s ultimately infinite supply and inability to beat Bitcoin in all aspects of “money.”

The precious metal saw a major sell-off last week after comments on policy from the United States Federal Reserve.

To beat gold, Bitcoin would need to trade at more than $533,000 with the current supply.

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Source: https://cointelegraph.com/news/bitcoin-in-uptrend-but-btc-may-never-beat-gold-s-10t-market-cap-ex-nyse-head

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