CONVERT YOUR BITCOIN TO………… ?
Woohoo! Standards fight!
Okay, so that’s not as much fun as shouting “food fight!” in a crowded cafeteria.
But it’s still fun.
Many of you, possibly without even knowing it, have participated in a standards fight before.
Remember VHS vs. Beta?
This was the fight for the VCR (which is what the world used before DVDs).
Beta, which was Sony’s standard, recorded an hour of beautiful high-quality video.
VHS couldn’t match Sony’s quality.
But you could record for two hours (and eventually four).
The two video formats (and machines) were incompatible.
So consumers had to pick one and stick with it.
VHS won out and everyone who bet on Sony lost.
VHS vs. Beta is likely the most famous standards battle in recent history.
But there have been others, like Blu-ray vs. HD DVD, Mac vs. PC
and alternating current vs. direct current.
Now the blockchain world is getting its own standards fight.
This battle isn’t for consumers (yet).
It’s for enterprise class solutions – blockchain for businesses.
The two (for now) competing entities in this fight are Hyperledger
and the Enterprise Ethereum Alliance (EEA).
The EEA is made up of 500 companies, including Credit Suisse, Hewlett Packard, ING, Samsung, Shell and Toyota.
And it just released the first version of its open-source framework to speed up and automate business transactions.
As the name of the group suggests, the EEA is using Ethereum as its blockchain platform.
Unlike the EEA, which can use Ethereum or tokens based on the Ethereum blockchain, Hyperledger doesn’t have a native currency.
But it does have a similar mission. It wants to “build a new generation of transactional applications that establishes trust, accountability and transparency at their core, while streamlining business processes and legal constraints.”
Hyperledger also has a series of heavy hitters contributing to its development:
IBM, Intel, Fujitsu, Deutsche Bank and SAP. Hyperledger is hosted by The Linux Foundation.
Before we get too carried away with this standards fight, we should note there are a few companies hedging their bets.
Cisco, Accenture, Deloitte and J.P. Morgan, among others, are betting on both.
So what does all of this mean to you, the investor?
In the short term, this is good news for Ethereum.
Last week, the EEA launched the first version of its Enterprise Ethereum Protocol .
(Hyperledger Fabric 1.0 came out last year.)
And while the technical details of this standard mean something to developers,
the important takeaway for investors is that the use case for Ethereum just improved.
And ultimately, that’s important.
Whether it’s as a store of value, an enterprise software solution or something else, cryptocurrencies need a use case
– and Ethereum is clearly demonstrating one here.
In the long term, this is another factor to take into account as you evaluate investment opportunities.
What environment are they developing in?
Which standard is gaining momentum?
And are those decisions following market trends?
In the end, all of this is good news for cryptocurrencies and blockchain tech. And we should all celebrate that.
P.S Adscash is a ERC 20 token so this is good news for Ads Also
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Crypto Investor Show | London 2018 ………….. click here
As the crypto asset class evolves, similar patterns and indicators
used by traders in other asset classes are emerging.
One of these is the tendency of markets to be in either “risk on” or “risk off” mode.
Investors are either willing to take on more risk through buying riskier assets,
such as tech stocks with little to zero earnings; or they are looking to take less risk,
adding either gold or U.S. Treasurys to their portfolios.
As the oldest and most liquid crypto asset, bitcoin is considered “digital gold.”
It can be exchanged for more altcoins than any other crypto and serves as the
main entry and exit point to fiat currency.
On top of that, there are thousands of merchants that accept bitcoin as payment,
providing users another exit to the crypto markets.
Bitcoin has been able to maintain crypto hegemony even through significant faults:
Transaction speeds are much slower than rivals, and fees tend to
skyrocket when the network is busy.
Many contenders have tried, but none have successfully replaced bitcoin atop the crypto throne,
and it remains the “store of value” within the crypto asset universe.
This unique position allows it to outperform other crypto assets when
investors are moving away from risk.
Bitcoin Is the Crypto “Store of Value”
To get a better understanding of investors’ willingness to take on crypto risk,
it’s possible to analyze bitcoin’s relationship to other competitors.
The second-largest cryptocurrency after bitcoin is Ethereum,
which commands a $50 billion market cap, or about one-third that of bitcoin.
Ethereum provides decentralized computational power, which can be provisioned
to build and execute smart contracts.
You can think of Ethereum as a smarter, programmable version of money.
The computers responsible for processing and validating these computations are paid in
ether, the native digital asset to the Ethereum blockchain.
In the past year, over half of all new blockchain-based projects were based on the Ethereum blockchain.
These are extremely speculative projects called utility tokens, and investors assume
more risk when they trade their bitcoin for this new token, usually through Ethereum.
(That’s not to say bitcoin isn’t speculative. Rather, it’s less speculative than c
rypto tokens such as TRON and Dentacoin.)
If bitcoin is considered the “flight-to-quality” crypto asset and Ethereum represents
more risk-taking, it follows that the Ethereum/bitcoin (ETH/BTC) spread should
indicate how much risk investors are willing to assume in the crypto markets.
A similar condition exists in the fixed-income markets, where most products
are priced at a spread to U.S. Treasurys.
When investors bid up the price of riskier assets, such as high-yield bonds,
the spread between those bonds and U.S. Treasurys will narrow.
However, when investors are less willing to take risk in the fixed-income markets,
the same spreads will widen.
Let’s take a look at the historical relationship between Ethereum and bitcoin.
The following logarithmic chart shows ETH/BTC dating back to early 2017.
You’ll notice that ETH/BTC began 2017 around 0.0081 and then peaked at 0.1500 in mid-June,
which is about an 1,800% rally.
At the same time, the total crypto market space moved up from $20 billion to
$115 billion, or a fivefold increase.
The next significant ETH/BTC rally began in December 2017 at 0.024,
where we saw an increase of nearly 300% to 0.12 in early February 2018.
During these months, total crypto market cap rose from $300 billion
to an all-time high of $800 billion.
Since this recent peak, both the total crypto market cap and the ETH/BTC
spread have dropped significantly.
However, both started rebounding just a few weeks ago.
The ETH/BTC spread has recently rallied 20% from 0.053 to 0.063,
and the total crypto market cap rose 40% from $250 billion to $330 billion.
Year of Bitcoin?
At the national level, traders are waiting with bated breath for what may be a breakout year for Bitcoin-related financial instruments in 2018. The long-awaited Bitcoin ETF could be approved this year, rumors have suggested, following strong sentiment following the debut of Bitcoin futures trading last month.
03 jan 2018
Bitcoin has finally surmounted the greatest psychological barrier of all, passing $16,000 and showing no signs of stopping. Following a week of consolidating at all-time high levels around $8,000, Bitcoin found the strength to move up powerfully over the Thanksgiving weekend.
Black Friday saw the currency hit new highs in the upper $8,000s before surmounting the $9,000 level Saturday and immediately charging toward the $10,000 mark Sunday. These price increase come on unusually high volume, with fear of missing out (FOMO) bringing new investors in rapidly.
Bitcoin has had a stunning year, by anyone’s accounting. Having started the year 2017 at just under $1,000, the price jump to over $10,000 represents some incredible changes. This growth is not a flash-in-the-pan either, but is supported by growing mainstream adoption and massive trading volume. In just the past 24 hours Bitcoin’s trading volume has exceeded $5 bln.
13 OCT 2017
Here’s Why $5,000 Is So Important For Bitcoin.In the absence of any major fundamental news, the big news out of the Bitcoin space today is that price has finally broken the $5,000 mark. Having hovered in and around $4,800 for a few days, the bulls finally picked up the push required to respect the strong price action and carry Bitcoin over the mark.
The question now is how did it happen, whether things go from here?
We saw it at $2,000, we saw it at $3,000, we saw it at $4,000 and we will almost certainly see it $5000.
The second reason why it is so important is that it has demonstrated the fundamental resilience of Bitcoin as both an asset (in terms of a store of value) and an industry (and specifically, a decentralized one).
China was in the process of banning ICOs and shutting down exchanges. Jamie Dimon of J.P. Morgan was calling Bitcoin a fraud and the Russian government was suggesting it wanted to stymie Bitcoin as an asset that’s only tradable over regulated exchanges and by accredited investors. Price collapsed but, importantly, and as the recent levels show, has now completely recovered from this setback.
In other words, if a large country like China (and one that accounts for the huge amount of volume in the space) can’t stop Bitcoin’s, nobody or nothing can.
Next up, $20,000.
Bitcoin’s price increase
Bitcoin entered a bull market in August 2016 at a price of about $550 per coin, according to data from Cryptowatch, leading the currency to surmount its previous all-time high back in March of this year. Since March, Bitcoin has been on quite a tear, rising from $880 to a high earlier this week of !!!… $ 15 000.