The crypto markets have been in the red since Sunday and show no signs of stopping. Bitcoin (BTC) has been forecasted to touch $5,700 before any signs of a rebound can be seen. The King of Crypto is currently trading at $7,200 at the moment of writing this and down 1.70% in 24 hours. Ethereum (ETH) has also been affected and is trading at $539. Ripple (XRP) has not been spared and is currently trading at $0.57. Bitcoin Cash (BCH) has gone to levels below $1,000 and currently trading at $926.
The cause of the current decline has been the subject of speculation. Many traders have postulated the theory that Bitcoin manipulation is highly probable. They claim that it all started when the CME Group and CBOE started offering Bitcoin futures back in mid-December. But these institutions really be blamed? The crypto-verse is unregulated and subject to pump and dumps once in a while at the expense of the small traders.
But can it be that the actions of the ‘big shot’ financial institutions are the kicks of a dying horse? Are they seeing pending doom with the introduction of decentralization and peer-to-peer transactions as envisioned by Satoshi Nakamoto?
This might be the case. They are trying to make some profits before they fall like the wooden bricks while playing Jenga.
Niall Ferguson, an accomplished author and commentator, recently told a group at a seminar hosted by the Bank of England, that Bitcoin and cryptocurrencies were the financial systems of the future. He was also keen to note that we might be on the cusp of another financial crisis as the one witnessed in 2008. He had this to say:
“The financial system of today is not fundamentally that different than the financial system of the pre-crisis period, except that big banks are better capitalized. I don’t think much else is really different. The novelties, the things that will really matter ten years hence are still relatively small in scale. Whether its bitcoin or cryptocurrency generally or the massive revolution in online payments that is being achieved by the big Chinese tech companies, that’s the financial system of the future, and it is still small enough not to be systemically important in 2018. In short, I am left feeling we are only a matter of time before the next crisis.”
The last crisis was the fault of the American banks who were trading with derivatives of mortgages held by subprime borrowers. The interest rates of these mortgages fluctuated resulting in a domino effect of delinquent payments. What then happened is a total collapse of the economy due to lack of support for the value of the said derivatives.
Long story short, the banks messed it up. This then gives cryptocurrencies the opportunity of grabbing the wheel in terms of being the financial system of the future. Even with the current decline in the crypto market, there is some light at the end of the tunnel in crypto going mainstream. We hold the key to this adoption.
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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.
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XRP Surges By 8% In A Surprise Bull Run
The new price surge that surrounded almost the entire crypto market brought quite a pleasant surprise for XRP holders, as Ripple grew in price by over 8% in the last 24 hours. In fact, XRP managed to achieve a price surge equal to that of Ethereum as of this morning.
While the third largest cryptocurrency is still quite behind ETH when it comes to market cap, many believe that it is only a matter of time before XRP regains its former glory. With that being said, a lot of people are still more than pleased with seeing Ripple climbing back to more stable levels, especially after a big price drop that hit the coin last week.
The new hike up allowed XRP to climb back to $0.446322. While this is still low when compared to its highest point in the last week ($0.52), the coin still seems to be well on its way to recovery. In fact, many believe that XRP has found a new bottom, one that is significantly higher than the last one. Most of this new success can be traced back to a price surge that Ripple has had recently when it even managed to briefly overthrow Ethereum as the second largest coin by market cap.
Despite its drop since then, XRP still remains one of the coins with the strongest growth in the last month. While the market is still far from stable,…
If Tether crashes, will that money pour into Bitcoin?
For a long time now, the so-called stablecoin, Tether (USDT) has been a topic of discussion within the crypto community.
Tether, as a stablecoin, is said to be fully backed by the USD. This allowed it to be one of only a handful of cryptos that can avoid volatility issues, due to the fact that it is backed by a stable fiat currency. However, for as long as it was around, Tether was very secretive of its bank accounts and funds in general.
While claiming to have the ability to back each of its USDT coins, many have questioned whether or not this can be true. At the time of writing (October 16, 2018), Tether has released 2,256,421,736 USDT in circulation. This means that it needs to have at least $2,256,421,736 in order to cover its circulating supply.
At this point, three questions emerge, and answering them could very well change the future of this stablecoin. The questions are as follows:
- Are all USDT coins fully backed?
- If yes, then where did that much money come from?
- If not, what will happen when the market discovers the lie?
Tether continues to keep secrets
As mentioned, Tether has always claimed to be able to back each of its coins. However, instead of operating on transparency, the coin used different tools, mostly opaqueness, misdirection, and playing the victim whenever someone tried to unveil what is truly going…
Is Bitcoin (BTC) Better Than USD?
Despite all its recent progress, cryptocurrencies still do not inspire trust in a lot of people. Many view them as unsafe money, with its very nature being doubtful. However, a recent report by the Polish Academy of Sciences’ Institute of Nuclear Physics shows that situation regarding cryptocurrencies may not be as bad as it seems. In fact, the report claims that Bitcoin might even be a better currency than it looks like.
Bitcoin vs traditional money
Bitcoin, as many are already aware of, is the first cryptocurrency. It was created a decade ago and was officially launched in 2009. But, even though it has been around for around 9 years at this point, it is still largely mistrusted by a lot of investors, especially when it comes to large institutions.
However, thanks to the Cracow-based Institute of Nuclear Physics’ recent report, this common opinion might actually be wrong. The Institute has conducted a detailed statistical analysis of the BTC market and has published the results in a scientific journal called Chaos: An Interdisciplinary Journal of Nonlinear Science.
Surprisingly enough, the report portraits Bitcoin in a very positive light.
The report started by commenting on the credibility of traditional money. In the past, money that people have been using was backed by specific material commodities, such as gold. These commodities gave the money its value and served as a guarantee that the money actually has worth. This is…
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