The Future of Cryptocurrency and What Can Happen to Bitcoin

The first virtual currency appeared back in 2009. It was Bitcoin, that still remains the leader on the cryptocurrency market, where there are already more than 1600 different coins. Today The Coin Shark will tell about the possible future of the virtual currency market and what famous businessmen and experts think about this.

How it all started: brief overview of Bitcoin rate

World’s first decentralized payment system was launched in 2009 and enabled users to make fast and secure transactions using Bitcoin cryptocurrency. The project was based on the blockchain technology where the information about transactions is recorded in a chain of connected blocks. During the first year Bitcoin was not traded on exchanges, because there were actually no cryptocurrency exchanges, and did not have a clear rate. In the summer, 2010, Mt.Gox exchange was opened, and Bitcoin exchange rate hardly reached 10 cents. In 2013 Bitcoin started with a price of about $15, but finished with almost a thousand dollars. The cryptocurrency managed to step over a thousand dollars mark in 2017.

Closer to the end of the year, Bitcoin rate reached its all-time hight of almost $ 20,000 per coin. Just in several weeks of December, it managed to increase from 10 to 19 thousand dollars. Bitcoin started the year 2018 with a sharp fall together with the whole cryptocurrency market. The rate experienced serious corrections and in the first quarter of 2018 Bitcoin cost fluctuates around 7-8 thousand dollars.

What do experts and entrepreneurs think?

It is interesting that most of the fiat money is currently also virtual – it exists on bank accounts. However, the ways of transferring assets within the framework of this traditional system have their drawbacks. Cryptocurrencies offer a new way of transferring assets. In May 2018, a well-known venture capitalist Tim Draper told Forbes, that in 2017 his forecast for growth of Bitcoin rate to $ 10,000 was based on the fact that he believed Bitcoin would be easy enough to use in the future and that people would use it as means of payment and a store of value. That’s why he himself decided to invest in virtual currency. Today Tim believes that Bitcoin’s liquidity will soon increase and people will be able to easily spend digital currencies. In addition, the number of Bitcoin users will also grow. His new forecast is 250 thousand dollars for a coin until 2022. In the long run, he is even more optimistic. In an interview, Tim says he believes the cryptocurrency will be used instead of fiat money in the future. “We will get to the point where we will go to buy coffee with fiat and the barista will look at us like we are crazy”- says the entrepreneur.

However, such a forecast may seem too optimistic for many people. Even Vitalik Buterin, the developer of one of the most popular virtual currencies Ethereum said that “cryptocurrency assets can depreciate to zero at any moment”. Bitcoin has many technical problems, for example, the scalability issue. The more users are there in the system, the more time it takes to process transactions in blocks. Small payments – the key to the massive adoption of the cryptocurrency – are currently not profitable.

Of course, it’s nice to have a million or so in your wallet, but what is its real value if you can not use it? It’s not that bad with Bitcoin but still not that good also. There are also various altcoins that try to find solutions to these problems.

Moreover, the relatively small capitalization of the cryptocurrency market makes it easy to speculate. This can affect the development of the system that many people consider to have a potential to change global economy. In addition, Google capitalization exceeds the capitalization of the entire digital currency market by more than two times.

Starbucks chairman Howard Schultz said he believes there is likely to be one or several legitimate and trusted virtual currencies in the future. Jim Reid, credit strategist of Deutsche Bank, that current debt crisis is a very serious challenge that fiat currencies are facing today. Perhaps we should consider alternatives. However, the cryptocurrency is obviously not yet ready to replace the entire traditional financial system.

Сonclusion

Anyway, people created money many times and in different places. It was a result of a consensus on the equivalent of value and always met the requirements of its time. Will cryptocurrency meet the requirements of today? Or will the drastic changes in the traditional economy and financial system go on another direction? The time will show.

Subscribe to The Coin Shark news in Twitter: https://twitter.com/the_coinshark

You Can Now Buy a Cup of Coffee in a Swiss Cafe Using Bitcoin’s Lightning Network

coffee for btc

While cryptocurrency is leaking into the spheres of entertainment, music and sports, the food industry seems to be falling behind a little. Though McDonald’s did launch its MacCoin, frankly speaking, it had nothing to do with crypto except its name.

A little cafe in the capital of Switzerland managed to outrun the king of fast food. You can now purchase food and beverages there using the Lightning Network of Bitcoin. By the way, the cafe is called energyKitchen.

To come up with this upgrade, the management of the cafe partnered up with a local IT company, and here is the result – Bitcoin holders now orders meals from the online menu or scan QR codes outside the cafe and pay for everything in BTC.

Oliver Grugger, the owner of this cafe, revealed some details on his Twitter.

So if you happen to be in Bern with a couple Bitcoins in your virtual pocket, make sure to stop by energyKitchen and get a cup of coffee.

Subscribe to The Coin Shark news in Facebook: https://www.facebook.com/coinshark/

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.

Subscribe to The Coin Shark news in Facebook: https://www.facebook.com/coinshark/

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

Subscribe to The Coin Shark news in Facebook: https://www.facebook.com/coinshark/

Why Did Ethereum Face a Record Fall And What Should Investors Do?

In 2015, after the launch of the Ethereum blockchain, the cryptocurrency industry was transformed beyond recognition. In this article, we will talk about why Ethereum is such a unique product, how to mine it, and we will definitely  touch upon the urgent topic of the rapid fall of its price.

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

  1. Features of the second most popular cryptocurrency
  2. More about the Ethereum mining
  3. Why has the Ethereum price recently dropped so much?
  4. Conclusion

1. Features of the second most popular cryptocurrency

Ethereum project is not just a digital coin, it is also a full-fledged platform based on which you can create your own decentralized applications. Another feature of the project is the support of smart contracts, which can potentially be implemented in any sphere of life. Thanks to Ethereum, a number of new decentralized projects began to appear on the market, that, in turn, accelerated the development of the entire cryptocurrency industry.

Ethereum is much more innovative than Bitcoin, it is often called cryptocurrency 2.0. Some of the largest banks in the world are already starting to work with the Ethereum platform, as they see the capacity of it, for example, Sberbank of Russia. Ethereum is almost the main popularizer of the blockchain technology for various types of business. It is also worth noting that transactions in the Ethereum network take an average of 20-30 seconds, whereas in the industry leader (BTC) this rate is approximately 10 minutes.

2. More about the Ethereum mining

The Ethereum blockchain works on the PoW algorithm, so the coin can be mined by the usual way for most users, by installing computing equipment or by using the services of data centers. Despite the fact that the coin is very popular, the complexity of its network is not too great yet, in order to start mining it at home.

  • The block size of the Ethereum varies from 20 to 30KBytes;
  • The average time between blocks is 14.4 seconds;
  • Reward for the new block is 3ETH;
  • The complexity of the network is 3129P.

The coin can be mined either independently or by joining a mining pool. It should be said that the second option is much more profitable and useful unless you have hundreds of thousands of dollars of initial investments. Another option for the mining of the Ethereum is cloud mining. It certainly eliminates many worries associated with servicing the farm, but results in profit which is much lower.

3. Why has the Ethereum price recently dropped so much?

Due to the great popularity and unlimited emission of the Ethereum tokens, the project has an inflation rate of about 10% per year. Vitalik Buterin, on behalf of the entire development team, said about the sharding of the network and the transition to Proof-of-Stake (Casper) protocols, which will reduce inflation by almost 20 times.

According to the graph of CoinMarketCap, the Ethereum price has grown from $8.33 to $1 378 over the past year, which gives 16 500% of rise. Unfortunately, this year we see a reverse picture of what is happening. At the time of writing, the rate of the second most popular coin fell to a psychological mark of $200 per coin. There are a number of reasons for such a precipitous fall, which we will discuss further:

  • General correction of the market. All 2018 the bears rules on the market, so all the coins lost from 60% to 90% of their peak values.
  • Forced sale of the Ethereum. The ICO market is developing rapidly over the past years. New blockchain startups, which created their products on the Ethereum blockchain, collected investments in ETH. After a successful ICO, developers need to cash out some of these investments in order to develop their project. Mass sale of an asset entails a decrease in its value.
  • Competitors. The market is beginning to appear quite promising projects, which, potentially, can solve all the problems of their older brother, such as EOS, NEO, Tezos, Cardano, etc. Of course, they are still far from the brainchild of Vitalik Buterin, but this is a very fast-moving industry, where changes occur at the speed of light.

4. Conclusion

Ethereum is an innovative locomotive of the cryptocurrency industry. Almost anyone can create smart contracts and their own decentralized projects with its help. The coin certainly has a certain number of problems that hinder its further development. The development team is actively engaged in their solution.

The coin rate has fallen dramatically, but this is not a reason to panic and sell off your coins. Fundamentally, nothing has changed, the project is still one of the most innovative in the market, so with a high degree of probability, it will have a bright future. And the temporary fluctuations of the exchange rate can be nothing more than market manipulation of the bears.

Subscribe to The Coin Shark news in Facebook: https://www.facebook.com/coinshark/

John McAfee Predicted the Bitcoin Price for 2020

mcafee

The crypto enthusiast John McAfee told in an interview about the future of Bitcoin’s price in the long term.

McAfee commented on the fall of Bitcoin from $7400 to $6400 in 3 days, he believes that this is the manipulation of the market:

“You can only manipulate something if you have the power to do so. Now if that thing becomes more valuable your power decreases, and the inherent value is many times the current price of Bitcoin. It just comes through always in every market situation. The people that are manipulating it, they are going to lose billions of dollars and then it’s going to be over.”

McAfee said that Bitcoin’s market is now in an “infantile state,” comparing it to a blade of grass susceptible to the wind or step. He also added that it will become “a fire raging in the forest” soon.

Finally, McAfee talked about the “mathematics” of the coin and made his own forecast of Bitcoin’s price for 2020:

“Why don’t we look at the last Bitcoin? We have thousands of people to mine one coin. What is that coin going to be worth? Maybe billions. Mathematics doesn’t lie. Say what you want, mathematics doesn’t lie. If it’s not a million dollars in 2020, it has to be. The end of 2020, December. That’s my prediction, I’m going to stand by it…it is the number 1 coin for processing transactions. Run the numbers.”

We want to remind you

John McAfee Is Partnering Up With Coinbene to Fight Corruption

Subscribe to The Coin Shark news in Facebook: https://www.facebook.com/coinshark/

A Crypto Lover Created a Horror Short Film About Bitcoin

bitcoin horror film

If you want to raise awareness and popularity of a certain thing – turn it into a movie or a song. Nothing will attract the attention of people more than appearance on Youtube or Spotify. We have already talked about the “cameo” of Bitcoin in music, now it’s time for movies.

A crypto enthusiast and a film director Alex J. Mann created a short film in the genre of horror which depicts the feelings of a Bitcoin holder when its price jumps.

According to the author himself, he draws inspiration for his short movies from the fintech industry and thought “Bitcoin was a necessary topic to explore”.

We remind you:

A Crypto Movie with Kurt Russell Will Soon Come Out

Subscribe to The Coin Shark news in Facebook: https://www.facebook.com/coinshark/