Towards the end of last year the upward movement of the price of bitcoin (BTC) seemed unstoppable and it would not have been crazy to assume that record highs would keep on being broken. Some investors who piled on were able to make a profit. The same was replicated with other digital currencies as investors tried to take advantage of arbitrage opportunities. There were also those investors who bought other digital coins with the aim of diversifying their virtual assets portfolio.
Due to the heavy demand experienced at the time some crypto exchanges ended up crashing. Those who had been holding virtual currencies for some time were rewarded with a record high just before Christmas. As a result of the excitement amateur traders and professional investors predicted that the price of bitcoin would see new record highs come the New Year. According to these traders this would be because investors would buy every dip just like is the case in every high-yield market that experiences a lot of volatility.
There were also those traders who expressed optimism that bitcoin would see universal adoption and this would only raise demand for the virtual currency thereby raising prices even higher. Even as the price of bitcoin crashed to below half its record high, which had been hit just a month prior, enthusiasts of cryptocurrencies were still optimistic about the prospects of the virtual currency in January this year. Some even said the price of the virtual currency would increase to a high of $100,000 per coin by the end of 2018.
However it is now May and the price of the largest digital currency by market capitalization is hovering around the $8,500 mark. According to bitcoin bears this is a classic case of a bubble that has burst.
This is reinforced by the fact that the price of the virtual currency is exhibiting similar behavior to that of the 1929 Wall Street crash. With regards to the 1929 crash a sizeable rally was experienced following the initial crash and then there were smaller ones that followed. Basically though the underlying trend was that the movement was downwards with stocks eventually losing all the gains that they had made the prior decade. In the event that Bitcoin follows a similar pattern then it is possible for the price to fall to zero.
Less than a month ago the Allianz Global Investors? global economics and Strategy head, Stefan Hofrichter, said that the prices of bitcoin were in a bubble and in the near future it was likely to burst due to inherent flaws in its design. According to Hofrichter the digital currency ticked all the boxes that are essential criteria with regards to asset bubbles.
Some of the criteria includes a fivefold increase in trading volumes in the course of half a decade, the lack of any financial regulation as well as the unveiling of related financial instruments that include bitcoin futures. Additionally Hofrichter said other factors making bitcoin a likely bubble were the fact that it lacked intrinsic value as it possessed no assets nor generated income.
Dippli is an independent media outlet that covers the current events in the crypto space. Got breaking news or a story to share? Then feel free to contact us at [email protected].
The post Analysts Say Bitcoin Is A Bubble That?s Already Bursting appeared first on dippli.
Organic growth? Bitcoin SV activity up 761% ahead of BSV conference
Active addresses and transaction counts on the Bitcoin SV network saw unbelievable growth in the two days leading up to the CoinGeek Live conference in New York this week.
Active BSV addresses grew from 110,000 on September 28, to 947,400 addresses today.
That’s an astonishing growth rate of 761%, in just two days leading up to CoinGeek Live, which kicked off on September 30 at 9am New York time, and will run until October 2.
The spike in active addresses raised eyebrows on Crypto-Twitter. Bitcoin SV and Craig Wright antagonist Arthur van Pelt reposted SirToshi’s chart that calls attention to the fact BSV has managed to overtake the Ethereum network in the middle of a DeFi boom. He said sarcastically:
“Seems legit. Organic Growth I think. Has nothing to do with #CGLive I bet’.”
Bitcoin influencer ‘Holdlonaut’ responded with a facepalm emoji.
Transactions on the Bitcoin SV network more than doubled in the same period, from 715.6K to 1,751K today. That’s growth of 145% in the 48 hours leading up to the conference. Average transaction values meanwhile, fell by two-thirds over the same period.
However, it’s possible the spike could simply be a coincidence, as the network does see some unusual bursts of activity on occasion. Active addresses spiked to over 1 million briefly on June 24, and transactions spiked to 5.5 million on July 10.
The CoinGeek Live conference is mostly an online affair and features speakers including nChain’s controversial chief scientist Wright, Bitcoin Association President Jimmy Nguyen and Fundstrat Global managing partner Thomas Lee.
In his opening address, Nguyen said that Bitcoin SV has incentives to discourage bad behavior and noted that the original Bitcoin whitepaper mentions the word “honest” 15 times.
According to CoinGeek’s report on Nguyen’s address, Bitcoin SV currently processes more 2,800 transactions per second on its mainnet, and is aiming for 50,000 in the near future. The forthcoming Teranode enterprise-tier protocol aims to have 1TB transaction blocks.
Nguyen said that Bitcoin SV is “the foundational rule set for an entire network,” and is “re-inventing the internet.”
In somewhat related news, the Supreme Court of Norway has rejected Craig Wright’s jurisdictional appeal. The Satoshi claimant had been trying to sue Hodlonaut for libel in the UK but will now have to go through Norwegian courts.
Hodlonaut said the court has awarded him another $6000 in costs on top of the $60,000 in costs already awarded:.
Supreme Court in Norway today rejected CSW’s jurisdiction appeal, awarding me costs of $6,000 on top of the $60,000 already owed.
His perfect loss record is intact. (4 out of 4)
The real case will now go forward in Norway where another loss surely awaits him.
Welcome to law! https://t.co/Ue4TL4P5gp
— hodlonaut ⚡ (@hodlonaut) September 30, 2020
President Maduro: Venezuela Seeks Opportunities To Use Cryptocurrency For Global Trade
- Venezuela’s cryptocurrency story continues as the country’s President Nicolas Maduro has presented new use cases.
- A recent report informed that the South American nation is studying the possibility of using digital assets in trades alongside the national Petro.
- President Maduro has presented new anti-sanctions law in the Constituent National Assembly. In a recent speech, he asserted:
“The anti-sanctions law is the first response to give new strength to the use of petro and other cryptocurrencies, national and global, in domestic and foreign trade, so that all cryptocurrencies of the world, state and private, could be used. This is an important project that is under development.”
- The news comes after Maduro suggested last year that his country could adopt cryptocurrency payments.
- Additionally, Venezuela signed a new tax agreement this summer that enabled the nation to start collecting taxes and fees in the Petro.
- A study reported by CryptoPotato revealed that digital assets already play an essential role in the country’s struggling economy. Venezuela’s intensifying financial crisis has catalyzed significant interest in cryptocurrencies as people seek opportunities to escape the devaluating national currency.
- The Bitcoin peer-to-peer volume exemplifies the growing interest in the primary cryptocurrency within the country. As per data from coin.dance, the BTC P2P volume on LocalBitcoins has been continuously surging in the past several months.
Leader That Allowed Scams: TRON’s Justin Sun Responds to Claims by Ex-Employees
Yesterday The Verge published an elaborate article portraying a picture of Justin Sun’s leadership at BitTorrent post the peer-to-peer file-sharing site’s acquisition by the TRON foundation.
Sun later responded to the ‘false-claims’ made by TRON/BitTorrent’s ex-employees in the article with ‘An Open Letter to Anyone Who Cares to Read’ on Medium.
Claim: Megalomaniac Leader; Response: True Libertarian
In the supposedly expose piece, author
Refuting the above portrayal of his leadership, Sun, in his response, stated that he has devoted his entire life ‘to being a responsible, global citizen’. Adding to this, Justin said that is a true champion of libertarian principles for a significant portion of his life.
I have devoted myself to being a responsible, global citizen throughout my entire life, spending significant portions of my personal and professional life to activities promoting universal values of respect, liberty, equality, and kindness.
The TRON and BitTorrent chief impressed further on his ‘global’ approach to things. He explained that the TRON Foundation harbors a ‘global team of talented contributors and developers’. And that he takes ‘pride in working’ with this global community to make TRON ‘one of the greatest decentralized blockchain protocols’.
Claim: Freedom Suppressor; Response: Upholder Of Human Rights, Individual Values
Dunaway reportedly engaged in conversations with folks who are/were associated with the TRON brand and the work culture. From what he gathered, Justin enforced a draconian company culture, with employees officially following the ‘9-9-6’ norm.
According to the article, TRON’s HR had Slack replaced with its Chinese counterpart DingTalk. The communication platform had an in-built surveillance mechanism that would use ‘Apple Health to count people’s steps’. Also, DingTalk used to ping employees literally all the time.
To this, Sun responded by saying that he has left no stone turned in, establishing a work culture that respects.
diversity and individuality through a culture that cherishes fundamental human values freedom of speech, user privacy, intellectual property protection, kindness, a diversified working environment, and compliance with legal standards.
Justin went on to comment that TRON and BitTorrent operate with a ‘globally collaborative team’. One that upholds and respects the ethos of cross-culture teams. Sun claimed that the folks at TRON folks have ‘worked hard’ to create a collaborative work culture. One that values freedom of speech and individual privacy.
Claim: Suppressed Criticism, Allowed Scams; Response: No Control Over Protocol Functioning
The Verge piece mentioned that ‘decentralization’ was just a facade for what was happening behind the curtains. Justin Sun and his core officials exercised strict control over content moving about and within the TRON network.
This involved allegedly paying a Redditor to ‘erase negative posts’. Which later drew the ire of the community.
Free speech is part of the ideology of decentralization, where ideas flow without gatekeepers. Tron started deleting any post it wanted.
The article also claimed that TRON’s administration team was silent and allowed the perpetration of scams on the network. While this happened, scammers and the scammed continue to grow in numbers while the management did nothing to interfere.
Justin, in his Medium post, said that he and the entire TRON administration team function sans control. Even though the team at TRON works to upgrade the platform, they do not exercise any censorship/regulation.
…we have no control or discretion over what applications use the protocol, what data is transmitted, or how its community members use it.
Sun went to add that he and his team are proud of TRON and BitTorrent’s achievement over the years. He went to quote that both have collectively ‘served 2 billion users around the world. These include ‘numerous enterprises, universities, and governments’.
Lastly, the TRON and BitTorrent boss struck down all claims made by ex-employees Lucasz Juraszek, Richard Hall, and Cong Li. Justin declared that the TRON foundation’s legal counsel has submitted all the requisite proofs and evidence pieces to the court. “We believe the decision will speak for itself”, he said.
BTT and TRX’s price didn’t seem to undergo any correction following the release of the bitterly scathing Verge piece. On the contrary, BTT is actually up 2.3% in the last 24 hours.
Featured image courtesy of QZ.com
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