Cryptocurrency Forecasts and Predictions: What to Expect from the Market in the Next Two Years?

cryptocurrency forecasts

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

  1. What influences the growth and decline of cryptocurrency prices?
  2. Predictions for 2018. What to expect from the market?
  3. Conclusion

1. What influences the growth and decline of cryptocurrency prices?

Every asset in the world (dollar and Bitcoin as well) is constantly changing in value, they differ only in the level of volatility. All exchanges (not just cryptocurrency ones) conduct trades with various assets, and the main indicator for their price is the ratio of supply and demand. The law of price formation is quite simple: “With each new purchase of an asset its price goes up, and with each sale it goes down.” If people who buy are more numerous than those who sell, it means that the rate will rise and vice versa. There are a lot of reasons for the formation of demand and supply:

  • Behavior of whales (large-scale players) who possess such capital, which makes it possible to turn the market into any desired direction.
  • Panic or euphoria, which are directly related to the fluctuation charts.
  • News background, which, in fact, influences the mood of most investors.
  • Other fundamental reasons of a single nature. For example, the launch of such a revolutionary technology as smart contracts gave the industry a second wind.

At this point in time, there is a direct correlation between the movements of Bitcoin price and the entire market as a whole, it can be seen even on the daily chart. That is, wherever BTC goes, altcoins follow.

2. Predictions for 2018. What to expect from the market?

Even the most professional experts of the industry are afraid to give any accurate forecasts on the development of cryptocurrencies and their value. At this point in time, the market is still too young and prone to excessive volatility, so no one can give an accurate prediction.

You can find a huge number of “real” predictions on the Internet from various kinds of “analysts”, but you should not believe all these articles. If you want to earn money on the cryptocurrency market, you need to learn how to look through tons of information garbage before you get to something valuable.

In this article, we will not be reading tea leaves. We will discuss the forecasts for the development of the top-2 cryptocurrencies. Of course, we could use our imaginaton and write about the growth of some young promising cryptocurrency by 100 times, but maybe next time/

Bitcoin

As the overwhelming majority of analysts believe, Bitcoin will stay at the top of the cryptocurrency hierarchy in the nearest future. This is evidenced by the increased demand for coins both among ordinary investors and among the governments of the world’s largest countries. Also, do not forget about the limited emission of this coin. In total, 21 million pieces will be produced. Due to the specially built algorithm of reducing the reward for the block found and complicating the overall complexity of the network, it is not going to happen soon. At the moment, a bit more than 17 million coins have been mined, and about 4 million are considered lost forever. By simple mathematical calculations we get a number equal to 13 million coins, which is now available in everyday life. On a global scale, it will be absolutely not enough to satisfy the needs of everyobdy, so the coin price will have to grow substantially.

Given that now the market is dominated by a deep correction with elements of depression, talking about significant growth in the nearest future is quite pointless. But if you consider the current situation on the market in a bigger scale, it becomes obvious that this is just another phase which can not last forever. If we analyze the more or less adequate forecasts of analysts and come up with the possible average rate for the end of 2018, this number might be about $14-15k per coin.

Ethereum

This coin is backed up by the revolutionary technology of smart contracts and the platform with the same name, where you can create your own blockchain applications. The vast majority of ICOs are conducted on the Ethereum platform, the total number of startups has exceeded 1000 in the course of the project.

Recently, the ICO market has begun to develop in leaps and bounds, which will certainly affect the cost of Ethereum. But you should not expect the price of ETH to be 20k dollars, like Bitcoin’s. This will be impossible due to the total number of coins, which has already exceeded 100 million pieces. So far, the emission of Ethereum is unlimited, but the developers are thinking about soft fork and the implementation of the new PoS algorithm, which will reduce the inflation of the coin by 20 times.

According to our editorial board, the average rate of Ethereum by the end of 2018 may possibly reach $1300-$1500. Thus, the coin has every chance to become the first in terms of capitalization, shifting the mighty Bitcoin.

3. Conclusion

The fluctuations in the exchange rate of any type of cryptocurrency (and other assets in general) are affected by the supply-demand relationship. These indicators are influenced by many factors (psychology, news background, global events, etc.).

The market has been showing a downward trend for a long time, but if you look at the situation more broadly, you can see that this is just another phase of it. In the global sense, cryptocurrency has all the chances to grow tens and hundreds of times, compared with today’s indicators.

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Ethereum Managed to Reclaim Its Second Place From XRP

eth conquered xrp

The crypto market has turned upside down. Yesterday the token of Ripple Labs, XRP, skyrocketed, raising by over 40% of its price. It even managed to outrun the coin Ethereum and became the world’s #2 cryptocurrency for a short period of time. The trading volumes of Ripple at some crypto exchanges also raised tremendously.

Experts believe that the price jump of Ripple is connected to the launch of the platform XRapid.

Even though, Ethereum managed to regain its place in the rating this time, it is definitely in quite a shaky position. Hopefully, the recently launched Ethereum 2.0 will have positive influence on the exchange rate of ETH.

We remind you:

Another Client of Vitalik Buterin’s Ethereum 2.0 Has Been Revealed

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Cryptocurrency Prices Today, September 22: Cryptocurrencies Are Unstable, Ripple Is Still Growing

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 0.74% in the past 24 hours. The price at the time of writing is $6652 per coin.

Cryptocurrencies stay both in the red and green zones:

Bitcoin Cash lost 1.70% over the past day and costs $473 per coin;

Ripple added 20.57% and is worth $0.56;

EOS grew by 1.87%, and its price is $5.89;

Litecoin increased by 0.71%, and its cost is $58;

Cardano lost 3.40%, and its value is $0.081;

Stellar dropped by 4.54% and is worth $0.23;

IOTA added 0.36%, and its value is $0.58;

Dash lost 3.3.1% and costs $200;

Monero decreased by 0.33% and is worth $119.

Ethereum added 3.97% over the past 24 hours. The cost of the coin is $235.

The total market capitalization is $221 billion. Bitcoin accounts for 52% of the total volume. It is $115 billion in monetary terms.

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HitBTC Added the Gemini Dollar Owned by Winklevoss Brothers to the Listing

gemini dollar listed on hitbtc

The cryptocurrency exchange HitBTC announced on its Twitter the addition of the Gemini dollar, launched by Cameron and Tyler Winklevoss on the Ethereum blockchain, into their own list of trading positions.

Since September 20, customers of the HitBTC, which joined it this year, can trade with Bitcoin, EOS, Tether and Ethereum in pairs with the Gemini dollar. The HitBTC platform was the first exchange on the cryptocurrency market, which carries out operations with this stablecoin.

We remind you:

OKCoin Adds Five New Tokens to Its Listing

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Cryptocurrency Prices Today, September 21: Bitcoin and Ethereum Are in the Green Zone, Ripple Rose by More Than 40%

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

According to the online platform Coin360, over the past 24 hours Bitcоin (BTC) added 4.51%. The price at the time of writing is $6699 per coin.

Cryptocurrencies are showing positive dynamics:

Bitcoin Cash added 12.86% over the past day and costs $480 per coin;

Ripple added 41.76% and is worth $0.46;

EOS grew by 10.57%, and its price is $5.78;

Litecoin increased by 7.14%, and its value is $57;

Cardano added 16.18%, and its cost is $0.083;

Stellar gained 18.71% and is worth $0.24;

IOTA grew by 9.16%, and its value is $0.57;

Dash added 7.83%, and its price is $205;

Monero increased by 7.28% and is worth $119.

Ethereum added 8.43% over the past 24 hours. The cost of the coin is $226.

The total market capitalization is $217 billion. Bitcoin accounts for 53.2% of the total volume. In monetary terms, this is $115 billion.

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Mining Complexity: What It Is and Where It Will Get

mining complexity

Not long ago there was a real gold rush around cryptocurrency mining – thousands of people started digging digital rock to get the precious digital gold, while its rate was beating all records and surpassing all expectations. It all started from simple mining on users devices – laptops, personal computers, tablets, etc. – and turned into a complicated industry with a developed infrastructure. Mining pools appeared, specialized equipment (ASIC-miners) was produced, huge mining farms were set up, where mining was conducted on an industrial scale. Mining even partially switched to the cloud – services appeared that offered cloud cryptocurrency mining without any investments, except for financial ones. Although mining has not changed the structure of the world economy, it is nevertheless not an ordinary phenomenon. The fact that currently cryptocurrency mining consumes more electricity than many countries is a case in point.

Today we will talk about what mining complexity, its function, how it changes, what it depends on and how can it set the tone for the entire cryptocurrency mining industry.

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

  1. Brief review of mining
  2. Complexity: how it changes and what it depends on
  3. What will happen to mining in the future
  4. Conclusion

 1. Brief review of mining

Mining actually means making computational operations to decode a certain algorithm and find its hash. Every mineable cryptocurrency is based on a particular hashing algorithm. When the algorithm is successfully decoded, a new block is added into blockchain, a new coin is issued and miners get their rewards. Many popular digital currencies can be issued only through mining, these are Bitcoin and its forks, Ethereum, Monero, Litecoin, Dash, Zcash, etc. Some, however, are pre-mined and do not provide mining opportunities, like Ripple, NEO, NEM, EOS, Tether, etc.

Depending on hash features, different equipment can be used to mine different digital currencies. Initially all mineable coins, including BTC, were mined on users devices (PCs or laptops) using CPU. Today it is not that common and there are a few popular coins that still provide such type of mining. Soon CPUs became not enough to profitably mine digital coins and miners started using graphic cards to cope with more resource-intensive calculations and growing complexity.

Later the specialized equipment appeared on the market – ASIC-miners that are used today to mine Bitcoin, as well as other coins, such as Litecoin, Ethereum, Dogecoin, Zcash, Bitcoin Cash, Litecoin, etc. ASIC is a specialized microchip that performs calculations much faster than graphic cards. Although ASIC today is mostly associated with mining, the technology itself was developed in early 1980s to advance graphic performance of PCs. Besides, miners create pools where they combine their processing power to make mining more efficient for the whole group. The reward for the created block is then distributed depending on the processing power provided by each pool member.

There is also another mining solution – cloud mining. Graphic cards and ASIC-miners are rather expensive, more and more of them are required to mine profitably. The equipment needs space to be placed, has to be connected to the power grid, cooled, cleaned, repaired, set up, monitored, etc. Cloud mining implies leasing of computing power from companies that manage large mining farms and data centers. In addition, cryptocurrency is mined in other sometimes even illegal ways. For example, your computer can be infected with a hidden virus-miner that uses its resources to mine a particular coin.

2. Complexity: how it changes and what it depends on

Complexity indicates how difficult it is to find hash. The specified hash parameters determine how difficult calculations should be to find it. The more users are there in the network and the more cryptocurrency is mined – the higher complexity is. Bitcoin complexity is reviewed every 2016 blocks (about 2 weeks) and depends on how much time was spent to mine previous 2016 blocks.

What is the function of complexity? Bitcoin is designed to add every new block in  10 minutes on average. This can differ from one cryptocurrency to another (2.5 minutes for Litecoin and up to 20 seconds for Ethereum). The amount of processing power in the network can drastically change over time – when Satoshi Nakamoto mined the first BTC, there was only one device in the network, probably a laptop or a PC. Today we have huge industrial farms with thousands of special mining devices.

To ensure the stability of the generation of new blocks, cryptocurrency software automatically makes it more or less difficult for miners to find hash. So if there are more miners and the computing power of the network increases, it is more difficult to find hash. If the power decreases – it becomes easier to make all necessary calculations. This is the way the system remains sustainable – no matter how much processing power is their in the network it will still take around 10 minutes to generate new Bitcoin block. In early 2010, Bitcoin complexity was just a little bit above 1, while in 2013 it was already 3 million. Today it has already exceeded 7 trillion.


Source: BitcoinEnergyConsumption.com

So, every 2016 blocks (about every two weeks), Bitcoin corrects its complexity, so that each block is generated in approximately 10 minutes, regardless of the number of miners in the system. Other mineable cryptocurrencies has the same role for complexity and it is implemented in a similar way.

3. What will happen to the mining in the future

Mining is no longer the same as it used to be – says… everyone. While some digital currencies can still be mined using PCs, it is rather difficult to join the “extraction” of most of the leading coins. To start mining Bitcoin today you should have… started mining Bitcoin a few years ago. The same thing is happening to other digital currencies, and ASIC-miners are to blame in fact. They are able to make calculations way faster and more efficient and wherever they enter the mining market, the total complexity increases and CPU/GPU-mining retires. However, some still manage to make money out of mining. There are still those coins that are not mined using ASIC-miners, which means one can still mine them on average laptops or PCs.

Anyway, one thing is clear – today, mining is no longer stands for easy money, and the market is being taken over by large, “professional” miners, who mine digital coins on an industrial scale. Industrial mining is associated with a whole range of logistics, legal and resource issues. Until recently, most of Bitcoin miners were located in China, but last year the government banned ICOs, cryptocurrency trade and mining. Another thing is energy consumption. Calculations require a lot of electricity, so the miners are looking for countries with lower power prices.

 

Source: BitcoinEnergyConsumption.com

Another problem is obsolescence of equipment. Many industrial miners have found out, that the hardware they used to mine BTC 2017 cannot ensure the same profit in 2018.

So, mining becomes less profitable and new members have no chance to join the market easily. This lead to the fact that mining of top coins becomes way less popular. Not mineable coins, as well as those who still provide available mining can take advantage of that. For example, in 2017 there was a boom for mining browser extensions (like Coinhive). Of course, browser-mining of Bitcoin or Ethereum sounds rather weird, but there is another relatively popular coin – Monero – that still provides such an opportunity.

4. Conclusion

So, complexity is one of the key categories that form a technical structure of mineable cryptocurrencies. Written in the protocol, it helps blockchain to remain sustainable in terms of the time necessary for the generation of new blocks. Complexity directly depends on the number of miners in the network and, accordingly, on the total processing power. Most of the leading cryptocurrencies have already became much more difficult to mine and this is obviously an ongoing process. There are more users, more special equipment and more professional industrial-scale miners which make mining unavailable for average users.  

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OKCoin Adds Five New Tokens to Its Listing

okcoin adds five new coins

To continue our today’s topic related to crypto exchanges, we wanted to inform you about the changes in the listing of the exchange OKCoin. OKCoin is currently occupying the second position of the CoinMarketCap rating. A couple of days ago, the management of the exchange introduced 5 new digital assets:

The newly added cryptocurrencies include:

– Ripple

ZCash

Cardano

– Stellar lumens

– 0x

The CEO of OKCoin seems pretty excited due to this event.

We are very pleased to welcome these five new cryptocurrencies and all of the communities that trade them,” he said.

We remind you:

Bittrex Adds Two New Coins: XRP and ETC

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