Can Bitcoin Lose All Its Value?

We have already got used to extreme volatility of many virtual currencies and first of all Bitcoin. It seems that not so long ago the rate was breaking records one after another, having reached its all time high of $20 thousand, and today it is trying to keep $8 thousand, if to say nothing of smaller daily fluctuations. However, can world’s first virtual currency lose all its value and cost zero? The Coin Shark will tell, whether Bitcoin can go full down and whether we should expect that to happen.

The answer basically lies in bitcoin’s prospective to be massively used and finally become a kind of a proper currency which, moreover, bases its value not upon world supplies (as gold) or state authority and economy (as fiat money), but upon mathematically sound  and utile ways to transfer information.

A major american bank holding company Morgan Stanley has issued a note where a group of company’s specialists headed by James Fawcett  analyzed the cryptocurrency market and concluded that Bitcoin can lose its value completely if people don’t use it as a mean of payment worldwide, – reports Business Insider. It is also mentioned that only a few of hundreds major online retailers currently accept Bitcoin.

However, there are many agent services that accept BTC payments and enable users to spend their virtual currency even on platforms where it is not accepted directly. Generally, we can observe the growing liquidity of the virtual currency, so if the coins themselves will be alright, the number of places to spend Bitcoin will increase. However, it will probably never be a good bargain to buy milk or bread with bitcoin, but that’s the issue we are going to talk next.

Bitcoin has several technical problems  that by the way some altcoins are trying to solve. A confirmation time basically depends on a transaction fee, which means that cheap transactions are going to take more and more time. The time of transaction also increases respectively to the growing bitcoin price and the more users are there in the system the more time they have to wait for their transactions.

It probably does not mean that bitcoin is self-defeating and especially in the short term. However, these problems definitely threaten the massive adoption of this cryptocurrency.

Early in 2018, full-time Chair of European Securities and Market Authority Steven Maijoor told Bloomberg, that crypto investors had to be ready to lose all their money invested in Bitcoin. The reason would be the extreme volatility that would never let Bitcoin become a proper currency.

Anyway, even if these problems potentially cut down on Bitcoin’s rate it will hardly decrease to zero, as long as the cryptocurrency market exists. Today BTC dominates among all other virtual currencies (there are currently more than 1500 of them) by more than 40%, and even if other altcoins that are technically better developed someday squeeze their grandparent, they won’t probably destroy it completely. However, even if it happens, it will be such a distant future that in terms of the cryptocurrency market, one can only make predictions and speculate.

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MasterCard Will Use Blockchain to Upgrade Business-to-Business Transactions

mastercard will use blockchain to upgrade b2b transactions

A worldwide payment system company MasterCard received an approval from the US Patent and Trademark Office regarding the application submitted in March of this year.

As we reported earlier, MasterCard got green light from the Office and started developing its own blockchain:

Mastercard Received a Patent on a Coupon Authenticating System on Blockchain

Now the company is directing the powers of this technology to improve and secure B2B transaction within its framework. According to their new patent:

There is a need for a technical solution to provide a disruptive, uniform settlement system which can reduce the amount of processing as well as the amount of communications and fund transfers.

This technical solution is the blockchain technology.

We remind you:

Would Ripple Not Be As Successful If It Hadn’t Been for Mastercard?

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Bitcoin and Ethereum Price Analysis Today on the 18th of September: Cryptocurrencies Collapsed Again

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, Dash, Monero: Cryptocurrency prices

According to the online platform Coin360, Bitcоin (BTC) lost 3.07% in the past 24 hours. The price at the time of writing is $6286 per coin.


Source: https://coin360.io/

In the past 24 hours Bitcoin reached the highest mark for the day at $6452, later it fell drastically to $6338 and then fell to $6257 per coin. At the time of writing BTC added about $30.


Source: https://coinmarketcap.com/

In this time interval, we can observe a downtrend.

The remaining cryptocurrencies fell into the deep red zone:

Bitcoin Cash lost 7.23% over the past day and costs $414 per coin;

Ripple dropped by 2.50% and is worth $0.27;

EOS fell by 9.17%, and its price is $4.86;

Litecoin lost 7.79% and its value is $51;

Cardano fell by 7.69% and is worth $0.063;

Stellar decreased by 3.51% and costs $0.19;

IOTA lost 6.01%, and its value is $0.53;

Dash lost 6.58%, and its price is $182;

Monero became cheaper by 7.89% and is worth $107.

Ethereum reached the highest mark of $221 in the past 24 hours. A few hours later, ETH dropped to $195. At the time of writing, the price of the coin is $197.


Source: https://coinmarketcap.com/

The total market capitalization dropped to $192 billion. Bitcoin accounts for 56.3% of the total volume. In monetary terms, this is $108 billion.

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Bitcoin Price Prognosis: How the Capitalization of the World’s First Cryptocurrency Will Change Over Time

bitcoin capitalization

We often hear different economic terms to be used in relation to cryptocurrencies – volatility, capitalization, price, value, etc. Today we are going to talk about Bitcoin‘s market capitalization and will see whether this digital gold really constitutes any significant part of world’s assets.

Contents:
(please, click the topic to scroll down to it)

  1. What is market capitalization?
  2. Bitcoin capitalization
  3. Prognosis
  4. Conclusion

1. What is market capitalization?

Market capitalization is quite a broad term. However, the first association that comes to mind is,of course, stock market. There is no single opinion on cryptocurrency but cryptocurrency can be called a financial tool that resembles both, money and shares. There is market capitalization of valuable securities, joint-stock companies and the whole market. Respectively,It is the price of a share, all shares issued by a joint-stock company and aggregated cost of all shares that circulate on the stock market. Back to the cryptocurrency, in simple terms market capitalization is an index of a total cost of all the coins. Market capitalization level depends on the cryptocurrency rate and they jump up and down together.

2. Bitcoin capitalization

Bitcoin is the first cryptocurrency in the world that was created in 2009. Today  more than 17 million coins circulate in the world and the maximum possible volume of mined BTC is restricted to 21 millions. Such a size of Bitсoin emission is layed down in the cryptocurrency code and cannot be changed. One of the important functions of this model is inflation prevention.  Only the fifth part of all the cryptocurrency reserve is to be mined and it will be done many years later. Considering the fact that every 210,000 mined block (one time in four years in average) slows down bitcoin mining two times when every new cycle begins. This formula allows to calculate that mining of 99% of all BTC will take 28 years and  mining of the last 1% will take more than 100 years!

However, back to the topic of the first cryptocurrency capitalization. In  2016-2017 Bitcoin became a synonym to bumper profit and goodwill. Digital currency was growing so fast that its holders didn’t have enough time to celebrate every new pick that the BTC rate reached day by day. Many people raised good money at Bitcoin and some people made even decadently big money,considering the fact that it wasn’t necessary to make efforts to gain the profit. The same way, cryptocurrency is associated with easy money, fast profit and other attractive things. At the same time there are more and more opinions about the significant impact that cryptocurrency has on world’s economy. Some are concerned that further development of uncontrolled decentralized financial systems are dangerous, while others think cryptocurrencies can create a really free economy of the future where everyone is their own central bank. However is cryptocurrency and Bitcoin in particular really a big issue for the world’s economy? In other words, is the digital gold really a big part of world’s capital? Well, figures from the CoinMarketCap can help figure it out.

So, today (mid-September, 2018) the total cryptocurrency market capitalization exceeds $190 billion which is by the way 4 times less than in late December, 2017 – early January, 2018. Back then the total cost of all coins circulating on cryptocurrency exchanges was almost $800 billion. It may seem really a lot, but in fact even back then the whole cryptocurrency market was worth less than just a single company – Apple. August 2nd, 2018 the total cost of all stocks of this company exceeded $1 trillion. Given that the stock market capitalization currently amounts to more than $65.5 trillion, cryptocurrency market capitalization looks rather small.

So what place does bitcoin have in the cryptocurrency market capitalization?

As a number of altcoins appeared and started developing, bitcoin dominance gradually decreased. In 2013 it exceeded 92%, and decreased almost by 10% until 2016. In summer 2017 bitcoin dominance was hardly 40% and Ethereum was snapping on its heels. Today BTC dominates, having 57% and the index started increasing since May, 2018.

Anyway, back in 2012 bitcoin market capitalization was only $0.06 billion while in December, 2017 it exceeded $336 billion. Today it is a bit higher than  $100 million and one BTC costs around $6.4 thousand.

3. Prognosis

As we already mentioned, the level of bitcoin market capitalization depends on the cost of every particular BTC. Today the cryptocurrency market seems to be starting to recover gradually from the rapid decline in the first half of 2018. At the same time, some experts believe that what we could observe in spring, 2018 was not really a collapse but just a correction of the rate after an unnaturally large increase in the end of 2017, when BTC was traded at $20,000 per a coin. In February, 2018, Jesse Powell, CEO and founder of a large U.S.-based cryptocurrency exchange called Kraken, told CNBC that capitalization of the cryptocurrency market could reach $1 trillion in 2018. So he basically expects it not only to recover lost ground but also increase its economic power. Moreover, it still remains an open question whether institutional investors finally “jump” into the cryptocurrency market, which will positively affect its capitalization. In July 2018, in a talk about bitcoin Maxim Balashevich, founder of an analytical company Santiment, told Forbes that “about a month ago we were just at the bottom of the 4th wave, and today we are in the 5th wave that should lead us to something between $25,000 and $50,000”.

4. Conclusion

So, can we expect a huge increase of bitcoin and cryptocurrency market capitalization in the longer term? Hard to tell. Anyway, today BTC`s capitalization is tiny as compared to the capitalization of stock market and it will probably take a long time for digital currencies to reach the level of huge public companies capitalization, even if they once again start increasing in value lightning fast.

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A Bitcoin Challenge Started Out in China: 21 Days With 0.21 BTC. Why Was It Stopped After Just 3 Days?

bitcoin challenge in china

We all have seen these shows where a person needs to survive a certain period of time with a limited amount of money in different locations. The Chinese TV decided to take it even further and add a new twist to the story.

A girl named He You Bing took up a challenge, during which she had to survive 3 weeks only having 0.21 BTC (approximately 1300 USD). That was all the money she had for food, dwelling and satisfying basic needs.

Considering the prices in China and also the fact that He You Bing carried out the challenge in megalopolises like Shanghai and Shenzhen (which are even pricier), it would seem quite an impossible task to complete.

However, if we think of the situation with cryptocurrency in China, here came another trouble for the girl, which was way more serious than the little amount of money.

He You Bing simply couldn’t find establishments that accepted BTC as a means of payment. She went from place to place, but most of the times very few people even knew about Bitcoin and cryptocurrencies in general, let alone accepted it. As a result, she had to eat wild fruits from the trees, free samples from shops and sleep in 24/7 cafes.

By the end of the 3rd day the challenge had to be stopped, and He You Bing had to be taken to the hospital due to starvation symptoms – the girl was on the verge of losing consciousness.

However, she reached ones of her goal – the challenge attracted attention of the public, thus, raising cryptocurrency awareness in China. Hopefully, next time the girl will choose less radical methods to do so.

We remind you:

McAfee Cryptocurrency Challenge Is Going Live

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Price Analysis for Bitcoin/Ethereum today, the 17th of September: Cryptocurrencies Are Stable

crypto prices

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, Dash, Monero: Cryptocurrency prices

According to the online platform Coin360, Bitcоin (BTC) lost 0.14% in the past 24 hours. The price at the time of writing is $6482 per coin.

According to the trading portal CoinMarketCap, Bitcoin reached the highest mark for the past 24 hours per day at $6540 per coin. A little later, the cryptocurrency fell by $15, and then dropped to $6482.

This movement can be characterized as an upward correction from the previous downtrend.

Cryptocurrencies returned to the green zone and are relatively stable:

Bitcoin Cash added 1.65% over the past day and costs $446 per coin;

Ripple added 0.15% and has a price of $0.27;

EOS lost 0.40%, and its price is $5.33;

Litecoin lost 0.53%, and its cost is $55;

Cardano added 1.03% and is worth $0.068;

Stellar grew by 1.36% and is $0.20 in price;

IOTA added 0.16%, and its value is $0.57;

Dash increased by 4.37%, and its price is $195;

Monero lost 0.73% and is worth $115.

In the past 24 hours Ethereum reached the highest level of $224 and at the time of writing dropped to $216.

Total market capitalization dropped to $202 billion. Bitcoin accounts for 55.4% of the total. In monetary terms, this is $112 billion.

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Memes about Bitcoin, Cryptocurrency, Mining and ICO

Internet memes is quite contradictory but still culture, a unique cultural phenomenon that appeared in the world where everything goes online. In different countries, regions and language communities memes appeared quite a long time ago. When cryptocurrency emerged and developed memes penetrated even this field.

Today, The Coin Shark will make a review of cryptocurrency memes and we will show how the modern online-culture reacted to the boom about Bitcoin, cryptocurrency, mining and ICO.

Content:
(please, click the topic to scroll down to it)

  1. Small history insight
  2. Memes about Bitcoin
  3. Cryptocurrency memes
  4. Mining memes
  5. Memes about ICO
  6. Conclusion

1. Small history insight

Internet meme is a phenomenon of online space. Both these phenomena possibly emerged at the same time. When the world wide web enlaced the whole globe with its net, and people in different parts of the planet got an opportunity to communicate and exchange information as easy as if they were sitting at the same table, memes emerged and developed mostly at internet platforms for different discussions. New online tools allowed for fast data exchange, so any cute meme could become popular almost immediately and the speed of its spreading was huge. Memes were spread via internet platforms, video hosting services, social networks, etc. Those were interesting and funny pictures, videos, gif-images, melodies, separate words, phrases, etc. Internet community answered with memes to all the world trends in all spheres of life, like policy, sport, technology, culture. It is difficult to identify which memes appeared in the first place, but one of the first memes are absolutely lolcat (pictures of cats with funny captions), O RLY?, facts about Chuck Norris, Pepe the Frog and many other memes.

2. Memes about Bitcoin

Hype that we have seen around bitcoin was probably even bigger than hype around the latest president elections in the USA and remained a hot topic even longer. Today, people talk less about the digital gold and its rate is way less appealing, especially for those who have purchased BTC for $10 or $15 thousand not very long time ago. However, the rapid increase of bitcoin rate in 2017 inspired hundreds and thousands of memes. Bitcoin had been demonstrating sustainable growth already in 2016, but 2017 appeared to be its “golden age”. The cryptocurrency started with around $890 per coin and finished the year having reached $19,000 and more. So, the majority of BTC-related memes were about the growth of cryptocurrency’s rate, its volatility, bitcoin geeks, those guys who did not buy bitcoin several month ago, and those who bought it.

meme 1

meme 2

And that is how it really used to be back to the times of sustainable bitcoin rate growth in 2017. One could hold the coins for a week or so and gain a double profit or even more!

Here is another popular bitcoin meme, similar to all those stories in movies when people travel in time to purchase winning lottery tickets or to make winning bets.  

This meme reflects exchange trading strategy when traders buy currency while its rate is low, then hold it and sell at the higher price later.

meme 4

And finally, a meme about bitcoin’s volatility.

meme 5

3. Cryptocurrency memes

Many people still think cryptocurrency is a new financial and information tool, however, it has actually been more than 10 years since bitcoin was launched. The cryptocurrency market with all its infrastructure started emerging in 2013-2014. Since the beginning of 2018 we’ve been observing a significant recession – currently bitcoin costs less than $6,5 thousand and Ethereum is less than $200, while it started with more than $1000 in January, 2018. Such a situation also inspired many memes, like:

meme 6

When talking about cryptocurrency, memes Dogecoin, of course, should not be left unmentioned. This cryptocurrency has a meme as its name and logo. And this meme is Doge – a picture of a Shiba Inu surrounded by multicolored text in Comic Sans font. The meme appeared in 2013 and became very popular. Dogecoin is a cryptocurrency based on the Litecoin blockchain. Today, it is a top-20th coin by market capitalization. However, it has an unlimited emission and currently Dogecoin circulating supply amounts to more than 100 billion coins. One Dogecoin is traded at around $0.006. Dogecoin is also famous for the charity activities of its community. For example, in 2014, the community managed to raise around $50 thousand for Jamaica national bobsleigh team to go to 2014 Winter Olympics. The team was qualified for the Games, but had no money to travel to Russia. Such a Doge.

meme 7

4. Mining memes

Cryptocurrency mining is a big industry. However, today, it has changed significantly and a wide range of people is no longer able to mine Bitcoins, Ethereum, Litecoin and other popular cryptocurrencies using their own hardware. Mining is actually about decoding of a hash algorithm to create a new block in blockchain and, as follows, a new coin. Back to the beginning of 2010s, it was possible to mine on one’s own laptop. Today, you will need expensive equipment, huge mining farms or at least connection to mining pool to mine cryptocurrency and gain profit out of it. So, here is a meme about CPU-mining that is currently no longer available for the majority of popular coins:

meme 8

Mining actually means computing. It requires a lot of power which is a problem for both individual and industrial miners. There is a “What if I told you”- meme featuring Morpheus from the Matrix about this.

5. Memes about ICO

Initial coin offering is similar to IPO, but is not regulated with all those strict provisions related to stock market. It enables startups to receive investments easily in exchange for digital tokens they issue. The very first ICO was held in 2013 by Mastercoin that managed to attract $5 million. Today, there are plenty of ICOs offering to invest in the development of payment services, cloud platforms, blockchain-based transport systems, content monetization tools, etc.  However, even though blockchain technology is rather secure, ICOs are often subject to fraud and are rather risky. 2016-2017 was the “Golden Age” of ICO campaigns. Back then many startups managed to get huge investments. At the same time many financial regulators were often not crypto-friendly and some jurisdictions (like China) banned ICOs at all.

Despite the fact that cryptocurrency crowdfunding seems to be rather attractive, many investors have not received what they expected. And it is not only about fraud and scam – hundreds of project were simply not successful.

6. Conclusion

Anyway, it is not really surprising that cryptocurrencies inspired such a huge variety of memes addressing a number of crypto-related topics. And it is obvious that there are more to come – more pictures, images, videos that reflect changes of the cryptocurrency market and other important crypto-events.

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