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Category: Markethive

IOTA Token has Record Breaking Launch on Bitfinex, Hits $1.5 Billion Market Cap

IOTA Token has Record Breaking Launch on Bitfinex, Hits $1.5 Billion Market Cap

    

Cryptocurrency exchange Bitfinex officially launched the IOTA token

At 9:00 am Eastern Standard Time, cryptocurrency exchange Bitfinex officially launched the IOTA token, IOT. Tradable in IOT/USD and IOT/BTC pairs, tokens for use with the IOTA network are now publicly accessible through the Bitfinex website. This launch represents a milestone for IOTA as they expand their user base. “Exchange listing is something that has become a hallmark for all crypto projects,” says IOTA founder David Sønstebø in conversation with CCN, “it represents that the technology is ready for the open market and the wider audience.” And looking at the numbers from the launch, it seems the open market was ready for IOTA.

Consumer Anticipation

After Bitfinex’s announcement on June 4, 2017, regarding the listing of IOT, user demand became readily apparent. The staff at Bitfinex found themselves ‘inundated with requests for details,” explained Bitfinex representative Brandon Carps, “We’ve yet to see this many requests for details on a token listing.” These inquiries lead to an unprecedented amount of support tickets created for Bitfinex.

By the Numbers

After going live on Bitfinex, the transaction volume quickly became so massive that the Bitfinex servers briefly went down. “Moments after the IOTA launch,” Brandon shared,  “we were all hands on deck to load balance and ensure IOTA trading was back online and operating as expected.” What kind of volume? Within the first three hours of trading, 4.44 Million Mega IOTA were traded with the IOT/USD pair, an amount that increased by the second. The IOT/BTC trades showed even greater activity, showing 11.67 Million Mega IOTA traded in

The same period.

The first two hours of IOTA trading was more than double the USD volume and ten times greater than the BTC volume of the last token we released, Ripple, over the course of its full trading day.

All of which sees IOT slotting itself straight into the top 10 cryptocurrencies by market cap. At the time of publishing, the total value of IOT tokens stands above $1.5 billion, peaking beyond the likes of Dash and Monero.

Bitfinex Lists IOT

The team at Bitfinex have been following IOTA’s development closely for the past year. Thanks to the innovative nature of their platform, and the “amount of effort the founders have put into IOTA in just a year’s time relative to the polished product we see today is atypical for something in such an early period of its life,” the IOTA token was an obvious candidate for inclusion on Bitfinex. The relationship is unique for Bitfinex as well, as this is the first token Bitfinex is hosting not listed on any other exchange. In discussing the success of IOT on Bitfinex, David said “I want to congratulate every IOTA member on this success. Now we welcome thousands upon thousands of new people who learn about and get interested in IOTA through this event with open arms. However, we are still considering this the very early days, and are squarely focused on the long term execution and vision of the IOTA project.”

Chuck Reynolds
Contributor
Please click either Link to Learn more about -Bitcoin.

Alan Zibluk Markethive Founding Member

Constructing a Real-Estate Backed Cryptocurrency: Brick by Brick

Constructing a Real-Estate
Backed Cryptocurrency:
Brick by Brick

BrickCoin, touted as the world’s first blockchain financial platform

On June 6, BrickCoin, touted as the world’s first blockchain financial platform backed entirely by the stability of Real Estate Investment Trusts (REITs), unveiled its vision for a “real estate-backed” global digital currency. BrickCoin seeks to usher in a new normal for consumer saving and financial stability that protects an individual's’ true wealth from the inflationary impact of fiat currencies. BrickCoin uses blockchain technology to drive this next generation of financial solutions that seeks to ensure financial inclusion for all. Those who are unbanked account for over a third of the global population.

BrickCoin uses blockchain as its underlying technology to facilitate the next generation of financial solutions aimed at ensuring financial inclusion for all. Unbanked people account for a third of the world’s population. This demographic is primarily concentrated in the emerging markets of Asia, Latin America and Africa where inflation levels are extremely volatile, and the value of fiat currency is unable to keep pace with inflation, thereby resulting in monetary value. The brainchild behind BrickCoin, humanitarian entrepreneur Lucas Cervigni, asserts that this is not just a problem facing the

unbanked:

“Inflation levels are rising around the globe, chewing into real incomes and savings rates. As a result, the world needs a better, safer and easier way for ordinary people to save and protect their money from inflation.”

He goes on to note that savings accounts and fixed income interest accounts are not inflation-proof and are stuck at record low levels of interest. Complex investment products such as hedge funds, he says, are typically only available to high wealth individuals and require large initial investments and do not offer ready liquidity and are vulnerable to bankruptcy. “By comparison, the debt-free real estate has and always will have intrinsic value, much as the old gold standards did. We plan to use this to create a new inflation-proof, secure but flexible mechanism for ordinary savers to protect their wealth,” continued Cervigni.

His vision is to create an asset-based cryptocurrency, which replaces the vulnerabilities of the current fiat currency system, combining the safety of a real estate investment with the liquidity and performance of a cryptocurrency. These REIT-backed coins will enable anyone to convert their fiat currency into a more stable and protected digital currency that not only increases in value but helps more people to grow their usable savings leading to stronger global economies.

Unlike other assets used to back new and emerging cryptocurrencies, commercial, mortgage-free real estate is a robust and regulated asset that is protected from increasing debt and inflationary cycles. For a large percentage of individuals around the world, BrickCoin’s online platform will represent their only chance to invest in real estate. By purchasing a BrickCoin, token holders will have the ability to build a steady income stream that grows at a guaranteed rate higher than the current inflation rate of their country, offering the individual a safe place to store and grow their wealth.

By way of example, in Venezuela inflation is expected to hit a rate of 2,500 percent by 2018. The currency, the bolivar, is so devalued that many people tote it around in carrier bags rather than wallets. The government has declared the currency to be virtually worthless. Unlike state currencies, BrickCoin’s value cannot simply be declared worthless, nor printed away.

While the opportunity for BrickCoin to fully assist Venezuela may have passed, it does demonstrate how the real world economy can benefit from the crypto economy, preventing or at least limiting the adverse effects of future monetary mismanagement and totalitarian government control. When asked about his journey into the world of blockchain-based, real estate-backed cryptocurrencies, Cervigni had this to say, “My journey into the crypto space began five to six years ago when I met a man called Diego Gutiérrez Zaldívar (president of Bitcoin Argentina) who got me interested in this new crypto tech. He believed that Bitcoin was the technology that was going to change the world.”  

Continued Cervigni:

“Later, I was working on a real estate development project in London when I realized they needed a faster, cheaper and more user-friendly way to work and found that the Blockchain was the answer. I began using blockchain and cryptocurrency during my work in real estate and over the last five years these early ideas developed into BrickCoin.”

He says that his engagement with Zaldivar was the catalyst for him starting BrickCoin. “He was already crowdfunding for real estate and got me involved.” Cervigni was quick to point out that in the crypto space, a business that has been running six months is considered well-established, BrickCoin has already been running for four years with a longer-term plan for the next decade. He says that within the next ten years the plan is to engage with governments in order to expand BrickCoin to different countries, with different regulators and expand the types of BrickCoins invested in real estate around the world.

Concludes Cervigni:

“Blockchain is the platform of the future. Everything in the world will be developed using open ledger platform. In respect to real estate, a huge proportion of the world doesn’t own a home; they rent accommodation. At least 15-20 percent do not have a home at all (they live in super precarious housing). There’s an enormous deficit in worldwide housing. We aim to fix that.”

Chuck Reynolds
Contributor
Please click either Link to Learn more about -Bitcoin.

Alan Zibluk Markethive Founding Member

Billionaire Investor Sets Example Investing in Altcoin ICO

Billionaire Investor Sets Example Investing in Altcoin ICO

    

A billionaire investor best known for buying roughly 30,000 Bitcoins

as part of the first government auction of the digital currency in 2014, is setting precedent as he stands behind a crypto token to be launched by a new startup. Tim Draper told Reuters in an interview that his participation in the initial coin offering (ICO) of Tezos slated later this month will be his first. The new Blockchain platform launched by a husband-and-wife team with extensive Wall Street and hedge fund backgrounds will launch the ICO on May 22.

Tezos incentive

According to information on its website, Tezos takes a fundamentally different approach by creating governance rules for stakeholders to approve of protocol upgrades. They are then deployed on the network automatically. When a developer proposes a protocol upgrade, they can attach an invoice to be paid out to their address upon approval and inclusion of their upgrade. This approach provides a strong incentive for participation in the Tezos core development and further decentralizes the maintenance of the network. It compensates developers with tokens that have immediate value rather than forcing them to seek corporate sponsorships, foundation salaries or work for Internet fame alone.

Draper’s confidence

As a new way of moving and storing money, Draper had told Fox Business in an interview in 2015 that Bitcoin is going to hit $10,000 in the following three years (by 2018). While the Bitcoin ecosystem looks forward to the feasibility of the prediction considering what is probable within the timeframe, it would seem that Draper’s confidence in the unfolding reality around him of what the top digital currency could bring to the table is still sound. This makes his disclosed interest in another aspect of the digital currency sphere — his plan to participate in a token offering and his choice of Tezos as a particular startup to invest in considering it’s a formation of a “husband and wife” team — a point to note.

With its family makeup, the success of the startup’s ICO will be a sheer example of the opportunities the crypto economy could offer the smallest unit of a society — after all, there are businesses owned and run by couples or a family. It would also show that the potential for Bitcoin, as a growing digital currency in various households, is huge in this kind of a business setup. Hence, Draper’s support for the adaptation of the cryptocurrency concept into the family-based business world could be precedential.

"The best thing I can do is lead by example," Draper said in his interview.

"Over time, I actually feel that some of these tokens are going to improve the world and I want to make sure those tokens get promoted as well. I think Tezos is one of those tokens."

Unlike most traditional venture capital firms which are prohibited by agreements with investors from deploying cash into such high-risk assets as digital currencies, Draper said his firm is doing this with Tezos because there is money for such non-traditional investments. In addition, they had anticipated “that certain things are going to happen and finance is going to be transformed."

Chuck Reynolds
Contributor
Please click either Link to Learn more about -Bitcoin.

 

Alan Zibluk Markethive Founding Member

Australia Will Recognize Bitcoin as Money and Protect Bitcoin Businesses, No Taxes

Australia Will Recognize Bitcoin as Money and Protect Bitcoin Businesses, No Taxes

    

The Commonwealth Scientific and Industrial Research Organisation

UPD: The Commonwealth Scientific and Industrial Research Organisation (CSIRO), the federal government agency for scientific research in Australia, stated that Blockchain technology will have a profound impact on the Australian economy. Bitcoin will be treated as money in Australia by July 1, 2017, and will be exempt from goods and services tax (GST). Bitcoin traders and investors will not be taxed for purchasing and selling Bitcoin through regulated exchanges and trading platforms. Over the past two years, the Australian Bitcoin exchange market significantly fell behind growing markets such as South Korea, Japan and South Korea, that control more than half of the global Bitcoin exchange market share.

Two majors factors which drove startups, exchanges and businesses dealing with Bitcoin and other digital currencies in Australia away from the country where the termination of banking services by leading Australian banks due to their anti-competitive nature and the double taxation of Bitcoin trading by the Australian government. Starting July 1 however, double taxation and trading and goods and services taxation on Bitcoin will be exempted. In its 2017 to 2018 budget for “Backing innovation and FinTech,”

The Australian government wrote:

“The Government will make it easier for new innovative digital currency businesses to operate in Australia. From 1 July 2017, purchases of digital currency will no longer be subject to the GST, allowing digital currencies to be treated just like money for GST purposes. Currently, consumers who use digital currencies can effectively bear GST twice: once on the purchase of the digital currency and once again on its use in exchange for other goods and services subject to the GST.”

The government will also protect Bitcoin businesses and exchanges

More importantly, the Australian government’s new vision to spur the growth of fintech and the digital currency market would most likely prevent local banks and financial institutions for unfairly denying banking services to Bitcoin businesses and exchanges. If the above mentioned issues can be resolved by July 1, the Australian Bitcoin market could potentially experience a rapid growth in terms of user base and trading volumes.

The document further read:

“Innovation will drive productivity growth in Australia. That is why the Government’s $1.1 bln National Innovation and Science Agenda (NISA) is designed to enable Australia to take full advantage of new economic opportunities. The Government is committed to establishing Australia as a leading global financial technology (fintech) hub and is announcing a new package that aims to position our local fintech industry as a world leader.”

At the Blockchain NZ conference held in Auckland, New Zealand earlier this week, Bitcoin and security expert Andreas Antonopoulos emphasized the Australian government’s uninvolvement in its local Bitcoin market and the impact of such actions on Bitcoin businesses and exchanges. More to that, Antonopoulos criticized the local government’s taxation policy on Bitcoin, which essentially drove away businesses and users from Australia to other countries.

“Governments can choose to either do nothing — which is okay, make things worse for cryptocurrency trading — like what Australia did by imposing sales taxes on all cryptocurrency transactions, or they can make things easier for companies by reining in the banks and encouraging companies by creating a level playing field,” Antonopoulos said. With Australia’s new policy, the Bitcoin ecosystem in the country could change drastically. Banks will start offering services to Bitcoin exchanges and traders will not be taxed with GST upon the purchase of Bitcoin.

Chuck Reynolds
Contributor
Please click either Link to Learn more about -Bitcoin.

Alan Zibluk Markethive Founding Member

Japanese Exchanges Say Volumes are Real Pushing Bitcoin Price Up

Japanese Exchanges Say Volumes are Real Pushing Bitcoin Price Up

    

Over the past few months,

the Japanese Bitcoin exchange market led an upward momentum for the global Bitcoin exchange market, continuously pushing Bitcoin price to new highs. In a period of 30 days, Bitcoin price increased from $1,200 to $1,760, recording a 32 percent monthly increase in value. Cointelegraph particularly provided extensive coverage of the Japanese exchange market’s overwhelming performance and influence over the global exchange. The demand toward Bitcoin in Japan significantly increased following the legalization of Bitcoin and the acceptance of Bitcoin payments by the country’s single most influential electronics retailer Bic Camera. Also, some of the largest multi-billion dollar corporations have announced the launch of their independent Bitcoin and digital currency exchanges.

Absence of fees raises concerns

One criticism over Bitcoin’s recent price surge has been the absence of fees in the Japanese Bitcoin exchange market. Some analysts suspected that the Japanese exchange market’s decision to exclude fees could have a similar effect the Chinese Bitcoin exchange had on the global exchange market. In an interview, Japan’s two largest Bitcoin exchanges QUOINE and BitFlyer clarified that the Japanese Bitcoin exchange market does in fact have fees in place. Yuzo Kano, the CEO of BitFlyer, the world’s largest Bitcoin exchange which controls over 67 percent of the Japanese Bitcoin exchange market share

stated:

“We charge trading fees for BTC and ‘swap point’ for FX. So it’s a different situation from China before this January. We are seeing funds inflowing not only to BTC but also all crypto markets.”

Mike Kayamori, CEO of QUOINE, which also controls around 10 percent of the Japanese Bitcoin exchange market share further emphasized that fees are charged for all traders other than spot trading of BTC/JPY. Thus, the claims of analysts that there currently is instability in Bitcoin price due to the low fees or absence of fees on Japanese Bitcoin exchange market are false.

Kayamori says:

“At QUOINE, we are charging fees on all trades other than spot trading of BTC/JPY. Every other currency pair, as well as margin trading, there is a fee. And our spreads are quite large, hence our volume is actually lower in April/May than it was March.”

Bitcoin as an alternative investment

Jon Southurst, a journalist based in Tokyo, noted that high profile and institutional investors along with casual traders are seeking out for alternative investments such as Bitcoin due to the government’s quantitative easing practice. On April 24, Cointelegraph reported that Bitcoin price could surge as the Japanese government moved on to print massive amounts of cash. At the time, Holger Zschaepitz, the senior editor of the financial desk and market maniac at

Welt, stated:

“For such reasons, it can be concluded that the current surge in Bitcoin price and the rising demand toward Bitcoin in Japan are well supported and justified.”

Chuck Reynolds
Contributor
Please click either Link to Learn more about -Bitcoin.

Alan Zibluk Markethive Founding Member

Clock Ticking for Altcoins as Bitcoin Breaks $1.3 bln 24h Trade Volume

Clock Ticking for Altcoins as Bitcoin Breaks $1.3 bln 24h Trade Volume

    

As the 24-hour transaction volume of the top digital currency Bitcoin

reached a historical high of $1.3 bln this week, the days of altcoins that solve no substantial problem may soon be over — or tested to a point of failure. The rising Bitcoin price which seldom reflects negatively on most alternative currencies is going to tell on their success. For those who have noticed, the more Bitcoin rises, the lowermost altcoins go — even the super altcoins. This could be as a result of the established fact that one has to buy Bitcoin to get into altcoins and vice versa to opt out. Or it could be as a result of a reduced confidence in what some — if not most — of these altcoins have to offer. There are also words of some being scams and others being clones of another or serving the same purpose with another.

Time for altcoins show what they are worth

Whatever is the case of every altcoin, what they really stand for would be tested in due course unless the rise of Bitcoin gets stalled. Their existence could be affected negatively unless they evolve to be a true representation of their initial ideas and market more to show off their achievements. New ideas are popping up every day and some would definitely become obsolete. The thought that the market decides really needs to be given consideration now especially as there is a growing notion that an altcoin bubble is in the making and it could pop at some point. Bitcoin’s rise is setting a standard that altcoins need to rise up to so as to wax stronger as well.

Bitcoin’s superiority

The reality of each and every passing year that Bitcoin has survived without being crushed to the ground- some investors report huge returns on their investments along the way- is sinking into the minds of more people. The confidence level in the currency has risen and new users are coming into the cryptocurrency world. It’s truly decentralized nature also makes its extremely difficult for its protocol to be changed by anyone or some developers unlike it’s the case with some altcoins — a good side to the SegWit/scalability standoff. Now aiming for the $2,000 price tag, the Bitcoin scarcity factor seems to be kicking in and pushing for demands that increase its value — remember last year’s block reward halving. It throws a greater challenge to altcoins and their need to brace up for what could be coming.

Chuck Reynolds
Contributor
Please click either Link to Learn more about -Bitcoin.

Alan Zibluk Markethive Founding Member

Japan to Roll Out Fixed Deposit Interest for Bitcoin

Japan to Roll Out Fixed Deposit Interest for Bitcoin

    

From one first to the next,

Japan will soon offer Bitcoin users fixed term deposits with interest. The Financial Services Agency has yet to push for regulation as it watches from the sidelines of what could seriously challenge the traditional banks fixed term deposits. Asian Nikkei reports that digital currency users and traders will soon be able to earn interest from the exchange. This fixed deposit interest accruing account is the first of its kind being made available in Japan.

Four fixed deposit options

Coincheck, founded by Koichiro Wada and Yusuke Otsuka has operated as an exchange since 2014 exchanging up to $160 mln worth of transactions per month. Its track record helps build credibility for clients interested in the interest accruing accounts that will be rolled out. The company will roll out four fixed deposit options. A 14-day option with a one percent annual interest accrual, 30-day option with a two percent annual accrual and a 90-day option with three annual percent interest. The longest time deposit and highest interest accrual will be for a 12 month fixed deposit netting five percent interest gain. This can prove a popular option as traditional banks in Japan moved their interest rates to 0.00 percent earlier this year.

Impact on demand for Bitcoin

Japan’s Financial Services Agency declared that the deposits are exempt from banking regulations as Bitcoin is not yet legal tender. There is speculation that they might change their stance on regulation if Bitcoin becomes a widespread method of payment. With multiple parties applying for exchange licenses to operate in Japan, it is likely that competing exchanges will offer the same value-added benefit to their customers. The scaling adoption of Bitcoin as a means of payment in physical stores drove up the price of the currency to record highs. If digital currency deposits succeed as fixed deposit accounts, there is no doubt that the demand will rise even further.

Chuck Reynolds
Contributor
Please click either Link to Learn more about -Bitcoin.

Alan Zibluk Markethive Founding Member

Litecoin, Silver to Bitcoin’s Gold, Now Aims at $50 Goal

Litecoin, Silver to Bitcoin’s Gold,
Now Aims at $50 Goal

    

Now that the Litecoin price is hovering at around $30

– as the Lightning Network, expected to make transactions faster on the network, is set to kick off in about two days — is it time for the digital currency, dubbed as the silver to Bitcoin’s gold, to aim for the $50 goal? As it stands, its market cap has crossed the $1 bln mark to join the three other major networks — Bitcoin, Ethereum and Ripple –

In the category.

"This is a huge plus for the currency which just got listed on top Korean cryptocurrency exchange, Bithumb. This comes in the wake of its addition on the Coinbase platform also last week."

If Litecoin succeeds with the SegWit activation and LN implementation — considering that Bitcoin has not been able to reach this far in terms of its scalability issue — it would definitely reflect in LTC price in the coming days. As such, wallet providers and other major users are expected to deploy SegWit-enabled apps.

"Litecoin’s Charlie Lee also confirms that Bitcoin Core developers have been working with his network on Confidential Transactions (CT) and Merkelized Abstract Syntax Trees (MAST)."

As it is expected to take the first mover advantage as one of the first to activate SegWit, all eyes would be on Litecoin and what it has to offer in terms of making transaction confirmation quicker. This will continue to be the case for as long as Litecoin serves as a relief to any transaction issues that are usually associated with Bitcoin. This will make it easier to send money from a point to another instantly and for less.

Upgrade important

The current issue of transaction delays on the Bitcoin network and rising transaction fees now seem stuck at the moment and some say it is no longer seen as an incentive to encourage new users to switch from fiat. Though not the first and only network to be working on activating SegWit, the upgrade is important for Litecoin because it is one of those networks with the oldest Blockchain beside Bitcoin. It also has an identical code to that of Bitcoin. However, despite the forward-looking consideration of how Litecoin is going to benefit users, we are yet to see it proven that people in the market really need what it has to offer. The debate on whether there is demand for its use continues.

Chuck Reynolds
Contributor
Please click either Link to Learn more about -Bitcoin.

Alan Zibluk Markethive Founding Member

Ripple Overtakes Ethereum to Become Second Largest Crypto After Japanese Bank Consortium Formed

Ripple Overtakes Ethereum to Become Second Largest Crypto After Japanese Bank Consortium Formed

    

Rather unexpectedly, Ripple officially took over Ethereum

by $200 mln in market cap to become the world’s second largest cryptocurrency with a total market cap of $8.5 bln. Over a 24-hour period, Ripple price recorded a 71.6 percent increase, while Ethereum price decreased by 6.85 percent. Several cryptocurrencies including Ripple, NEM, and Stellar Lumens experienced inorganic short-term price growth in the last 24 hours, each gaining 71.6 percent, 53.4 percent and 94.81 percent daily gains respectively. Although Ripple has made significant progress in establishing strategic partnerships such as the recent addition of 10 new financial institutions including MUFG, BBVA, SEB, Akbank, Axis Bank, YES BANK, SBI Remit, Cambridge Global Payments, Star One Credit Union and eZforex.com, it is difficult to justify its 71 percent gain in such a short period of time.

Japanese Consortium announced

The latest partnership or initiative launched by Ripple was 11 days ago and no major exchanges or trading platforms globally have integrated support for Ripple trading in the past few weeks. Thus, to be critical, a 71 percent increase in Ripple price seems fairly inorganic. The only driving factor that could explain Ripple’s latest price surge is the establishment of a collaborative project amongst banks in the Japanese Consortium for cross-border and domestic payments. According to its official introduction video, Ripple is powering the entire network with its Blockchain-based cross-border and cross-bank payment protocol.

Japan Bank Consortium stated:

“In order to address these emerging needs, banks have come together to launch the Japan Bank Consortium for cross-border and domestic payments which enable a flexible and efficient payment system. It is the world’s first case to implement Ripple solution in a cloud environment.”

With its partnership with Japan Bank Consortium and other leading banks and financial institutions in Europe such as BBVA, Ripple has solidified its position as the base Blockchain protocol for the global financial structure and industry.

What does it mean for Ethereum?

Ethereum has implemented a similar partnership-based strategy with the launch of the Enterprise Ethereum Alliance earlier this year. While it is still uncertain whether Ripple’s short-term growth will stabilize over the long run, Ethereum and Ripple are both utilizing the same strategy to appeal to large-scale conglomerates and banks. Although Ethereum has attracted the likes of JPMorgan, Ripple seems to have grasped the attention of multi-billion dollar banks and financial institutions.

Chuck Reynolds
Contributor
Please click either Link to Learn more about
-Bitcoin.

Alan Zibluk Markethive Founding Member

Bitcoin, Ethereum and a New Direction for Cryptocurrency Investment

Bitcoin, Ethereum and a New Direction for Cryptocurrency Investment

Bitcoin, Ethereum and a New Direction for Cryptocurrency Investment

This week CoinDesk released its State of Blockchain Q1 2017 study, which details recent trends, statistics and sentiment around cryptocurrencies and blockchain technology.

While the entire report is worth a read (there are some surprises), two slides especially caught my attention. When put together and compared with current data, they point to what could be a fundamental shift in market dynamics.

Now, why would investors give up bitcoin to buy into ethereum? Either they believe that bitcoin will soon start heading down — slide 62 shows that almost 45% of respondents are negative on the cryptocurrency — or that it could continue to go up, but that ethereum will increase by even more. Either way, we’re looking at an asset reallocation.

If you take a look at the ether trading volumes today, though, you see a different picture.

The volume of fiat purchases of ether has shot past that of bitcoin to account for approximately 70% of volume (at time of writing). A large part of that growth is due to a jump in interest from South Korea, but US dollar purchases have also increased significantly.

This looks like ‘new money’ is coming into cryptocurrencies and choosing ethereum over other alternatives. Bitcoin’s trading volume is also increasing (and still dwarfs that of ethereum), but not by as much.

What could this mean?

While trading data of a few weeks does not necessarily translate to new market trends, it could hint at a shift in portfolio prominence. While bitcoin has traditionally been the main cryptocurrency holding for both private and institutional portfolios, ether is emerging as a strong contender.

One interesting effect from this will most likely be a change in the conversation. It should move from the 'bitcoin isn't money' diatribe, to one of 'what can ethereum do?'.

Although over 85% of our survey respondents felt that ether could serve as a currency as well as bitcoin could, it has never worn the currency cloak like bitcoin has. Ether has traditionally been positioned more as a ‘digital token’ that can engage with scripts and contracts, and can be used to enable apps across a wide range of sectors.

From an asset allocation and a sentiment perspective, ether’s rise in prominence is encouraging. A shift in focus from threat to innovation would be more constructive for all, and should push development in the cryptocurrency sector even further.

From an asset allocation and a sentiment perspective, ether’s rise in prominence is encouraging. A shift in focus from threat to innovation would be more constructive for all, and should push development in the cryptocurrency sector even further.

David Ogden
Entrepreneur

Article by Noelle Acheson

Disclaimer: The views expressed in this article are those of the author and do not necessarily represent the views of, and should not be attributed to, CoinDesk.

Alan Zibluk Markethive Founding Member