What Is the Future of the Cryptocurrency Industry?

cryptocurrency future

The cryptocurrency market can not boast of stability and balance, but it is the only investment tool that can multiply investments in tens of thousands of times in just a few years. “Bitcoin-fever 2017” attracted public attention to the industry. If only a couple of years ago only very few people knew about cryptocurrencies, now it is difficult to find a person who has never heard the word Bitcoin in his/her life. However, the general euphoria did not last long, and the whole market turned red right after the Christmas holidays. More experienced investors expected correction, but few people could imagine that it would last for such a long time. And now (the end of June, 2018) when the market is almost at an annual minimum (capitalization fell from $814 to $233 billion), everyone is interested in the question: what is the future of cryptocurrency? In this article we will try to turn off emotions and analyze what is waiting for us in the short and long term.

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

  1. The future of cryptocurrency in the world
  2. Opinion of experts
  3. Conclusion

1. The future of cryptocurrency in the world

Is Bitcoin a certain industry standard? The overwhelming majority of investors are interested in the fate of the world’s #1 coin. Bitcoin has grown from $0.001 to $20k, now it is staying in the trading range between $5800 and $6200. If you compare it with the historical maximum, then rate of the coin is showing negative dynamics, but if you look at the situation in the perspective of a longer period of time, it becomes obvious that the asset is liquidated and is showing stable growth.

If we talk about the future of the world’s #1 cryptocurrency, then it is certainly very promising. At this point in time, any knowledgeable person knows for sure the vector of technology development for the next 10 years. Let’s operate with facts:

– World leaders discussed the rapid development of cryptocurrency at the G20 summit in 2018 and concluded that the point of no return had already been passed, and it was impossible to ban the industry, it needed to be regulated within the framework of the legislative field.

– Exactly one year ago Bitcoin cost about $2500, and the market capitalization was slightly more than $100 billion. Considering the almost half-year correction (with a little respite), the current figures are 2.5 times higher. This means that we see an increase by 250% on the annual chart.

– In 2017 Stanford University conducted a large-scale study of cryptocurrency, where the approximate number of Bitcoin wallets was calculated. Their number was from 5 to 11 million pieces. According to the authors of the study, the figures are not exact, but even if we multiply their maximum statement by 3, we will get about 33 million people who have done some operations with cryptocurrency at least once in their life. If we consider that the total population of the planet is 7 billion people, it becomes obvious that even an overestimated figure of 33 million seems insignificant. These figures let us understand that the globalization of the cryptocurrency industry is still in the future. The growth of new users will inevitably lead to an increase in the rate.

– The project Ripple is already cooperating with more than 100 banks around the world, thereby simplifying and improving their work (improving the level of security and speed of transactions, as well as reducing commission significantly).

2. Opinion of experts

Experts predict a different fate for it, from complete collapse to recognition as an only world currency. Let’s find out which opinion is closer to the truth and whether Bitcoin and other coins have a future.

John McAfee, perhaps the most ardent cryptocurrency adept, who is 1000% sure that Bitcoin will become the new world standard. He assures that BTC will outshine the dollar, as well as the latter outshone gold. According to his forecast, the Bitcoin rate will be at least $1 million by the December of 2020. He is so confident in his prediction that he agreed to eat a piece of himself if he is wrong. We think you guessed which part of the body we are talking about.

In order for such a fantastic forecast to come true, the coin must be recognized at the international level, and trillion investment rivers must flow into it. According to McAfee, this is quite realistic, since it does not require the unanimous consent of all countries of the world, G7 will be enough. The rest of the countries will be forced to adjust to the leaders which they depend on economically.

If this happens, Bitcoin will start to be used everywhere, just like dollar today. Why should Bitcoin lead an expedition to world technology digitization? Everything is simple, the industry pioneer has many similar characteristics with gold:

  • limited stocks (emission of 21 million coins);
  • the process of mining is gradually becoming more complicated;
  • significant energy costs for extraction.

All of these factors above exclude the inflation of the coin, which many other cryptocurrencies are subject to.

James Altucher is a private investor and a hedge fund manager. He believes that cryptocurrencies have all prospects to deprive the state central banks of the money issuance monopoly. If you remember, this right was taken from the telephone industry by the Internet in the past.

Altucher believes that the national currency of a certain country may fail in the nearest future, and the government will not have a choice but switching over to digital coins. The main applicants for this are Argentina and Venezuela. It surprising, but the Venezuelan government announced its intention to release the national coin El Petro literally a week after the statement of Altucher came out.

Elena Kvochko, the head of the security department at Barclays, believes that cryptocurrency has a future only if it enters the white legislative field. Bills on the regulation of cryptocurrencies in different countries differ, but, in general, 2018 gets the title of the “regulation” year. There is still a lot of work to do, but if everything is done correctly, it will significantly affect the industry.

3. Conclusion

The cryptocurrency industry will undoubtedly develop and doubting this statement is stupid for a variety of the abovementioned reasons. It is not yet clear what coin will become the leader in the next few years, many people are betting on the current favorite – BTC. However, it can not be denied that there are many other more technological, but less popular coins. They have all the chances to make it to the leaders’ list.

Money and traditional banks will not disappear anywhere in the next 5 years, the introduction of digital payment systems into everyday life will be gradual.

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

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.

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

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

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

An American Businessman Purchased a Bentley with Bitcoins

cars keys bitcoin

As we reported earlier, a luxury American car dealership, Post Oak Motor Cars, offered a new payment options for their clients. Besides USD, you can now pay in Bitcoin and Bitcoin Cash.

We remind you:

Fancy Car Lovers Can Now Purchase Bentleys, Bugattis and Rolls-Royces With Crypto

The first buyer was not long in coming. A business owner from Texas, Ken Bridge, bought a Bentley paying for it with BTC.

Bridge is a long-term Bitcoin investor and also a big supporter of the CEO of Post Oak Motor Cars.

I applaud Tilman for making massive strives in Bitcoin consumerism.” he said.

The businessman also mentioned that the blockchain technology and cryptocurrency have a great potential and he will keep supporting them in every way.

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

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.

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

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.  

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

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

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