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Is it possible to foresee Bitcoin’s trend by observing Ethereum and Litecoin?

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The trader’s mind is the same on any given marketplace. The fears and expectations regarding a commodities price at a particular time and period. But is there a direct correlation between the prices of Bitcoin, Litecoin, and Ethereum?

The response to that question varies quite a bit depending on the combination of which digital asset and the period. From our observations, there are several times where the three virtual currencies have moved in tandem with one another in regards to price even though Bitcoin is the undisputed leader of virtual currency.

For the past few years, the crypto space has witnessed several altcoins gaining relevance in the industry, among these altcoins include, Litecoin which was created in 2011 with the aim of being the second runners-up to Bitcoin’s gold. At present, Litecoin is the 7th largest virtual currency by market capitalization after Stellar, EOS, Bitcoin Cash, Ripple, Bitcoin and Ethereum.

What is the correlation between these three cryptocurrencies? This writing will try to look at the relationship Bitcoin has with Litecoin and Ethereum in trying to decipher their relationship.

Bitcoin and Litecoin

Although not being as rich as Bitcoin, Litecoin is younger, faster, cheaper, smarter, and fast-rising wealthy brother of Bitcoin. On the other hand, Bitcoin is the default virtual currency that had to go through all the troublesome experiences to rise to the top where it sits comfortably today. But even still, the two are brothers who share a lot of similarities with one another.

Launched in January 2009 and widely acknowledges as the world’s first virtual currency, Bitcoin allows investors to make financial settlements without the need for trusted mediators.

These settlements are confirmed and acknowledged by the platform nodes through the use of cryptography and later logged in a public distributed ledger called a blockchain.

Litecoin first surfaced on Github in October 2011as a branch of the Bitcoin Core client and is a few years younger than Bitcoin. According to their website, “Litecoin is a peer-to-peer internet currency that enables fast, almost free cost settlements to anyone around the Globe.”

Many observers have accused Litecoin of the intention of replacing Bitcoin as the top significant virtual currency in the market, but Litecoin’s team have been consistent in stating that their main intention is to work with Bitcoin to aid in solving the world’s future settlement needs.

Bitcoin and Ethereum

Ethereum is another virtual currency that was developed to follow the footsteps of Bitcoin. Created and developed by a Toronto programmer and BTC enthusiast, Vitalik Buterin. He saw it fit to come up with his blockchain technology and virtual currency to compete with Bitcoin in the crypto market to be used as a financial asset and a decentralized platform for decentralized apps, Dapps.

Regarding scalability and transaction speed, both Bitcoin and ethereum have been experiencing a platform clog due to high user transaction giving Litecoin an upper hand.

All three cryptocurrencies have made entirely different design selections, and as with every decision and choice, it opens opportunities while it closes others. It is true that both Litecoin and Ethereum sometime dictate the performance of Bitcoin but the vise versa is usually true most of the time.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of Maxpixel.net

Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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Altcoins

ICTE May Bring About Sweeping Changes for Cryptocurrency Exchanges

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Cryptocurrency has taken the world by storm during the last few years. An entirely new financial market was created almost overnight which has captured the imagination of all its participants. Cryptocurrency is even starting to attract institutional money from investment banks, hedge funds, and other proprietary trading firms. Despite the rapid growth, traders remain extremely frustrated by having to deal with the fragmented nature of centralized crypto exchanges.

A Change is Needed

When cryptocurrency first began, there weren’t many participants and the trading volume was relatively insignificant. But, over time, that has radically changed. Some tokens now have a capitalization in the billions and are being traded 24-7 by institutions all over the world. Despite the volume, significant problems exist with the current way that exchanges work. Some of those problems include the following:

  • Constant fear of hackers
  • Exchange manipulation
  • Fragmented liquidity
  • Risk of identity theft

One of the biggest issues regarding centralized exchanges is the risk of being hacked. These hack stories seem to always be circulating around the internet. While experienced traders may have the tools to avoid becoming a victim, potential new traders have zero interest in dealing with this. And it’s not just the small exchanges that are at risk. Even large exchanges, such as Mt. Gox and Binance, are subject to being hacked.

Another huge risk is having to deal with…

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SonicX and Dash Could Challenge Facebook’s Libra for Global Payments Market Share

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When Satoshi Nakamoto unveiled Bitcoin to the world, the dream was always for Bitcoin to serve as a new universal currency.  It would be free from the bureaucracy of governments.  And free from the tyranny of the old-world financial cartels.  Although the dream hasn’t yet materialized, it comes closer and closer with each passing day.

One of the biggest roadblocks for Bitcoin has been scalability.  At a speed of approximately 7 transactions per second, Bitcoin lags behind other cryptocurrencies like Ripple and global payment processors like Visa.  Many expect the lightning network to have a positive impact on Bitcoin’s TPS but until that comes to fruition, mass adoption will likely need another significant development.

Libra Currency Announcement

One development that could help pave the way toward mass adoption is the launch of the Libra currency.  Libra is expected to go live during the first half of 2020 according to Facebook’s June announcement.  According to Facebook, Libra will make sending money online cheaper and faster.  It will also have a hand in improving access to financial services, especially for the unbanked.  Given Facebook’s global reach, including many third world countries, providing financial access to the unbanked could provide a huge spark to global economies.  Additionally, it could provide the growth spark that cryptocurrency needs.

Facebook’s most popular messenger, WhatsApp, has approximately 1.5 billion monthly users.  This application is…

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