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Will The Ethereum Crash Continue?

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Ethereum crash
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At the moment of writing this, the crypto markets are experiencing the usual decline as we transition from the weekend into the week. The weekends are historically known for low trade volume, therefore, it was a surprise when Ethereum (ETH) managed to dig itself out of a hole from its Wednesday levels of $171. The weekend should have caused ETH to fall further. But it survived the weekend only to start declining yesterday, Monday the 17th of September.

The King of Smart contracts is currently valued at $199 and looks once again to retest more levels below $200 with the additional FUD that ICOs were cashing out on their funds due to a bear market. The latter rumor might be true but the ICOs cannot be blamed for wanting to pay employee salaries, pay operation costs and even perhaps buy some office coffee. These are the regular costs of running a startup. As a matter of fact, Ethereum should be thriving if they are paying for their expenses using the digital asset. Many employees in the crypto-space actually prefer being paid in crypto.

But we are digressing. The first evidence that the Ethereum crash might continue is the fact that it has lost all the massive gains it had achieved last week and leading into the weekend. At one time, we all thought $250 was a possibility.

There could be hope around the corner for its network congestion issues might be a thing of the past with the first demonstration of sharding in Berlin this past week. Sharding is a concept of dividing the processing of transactions amongst shards or groups of nodes in the blockchain network. This then means that a transaction need not be validated by the entire network to process thus increasing the throughput of the Ethereum network.

Vlad Zamfir, the Ethereum core developer who demonstrated sharding on the network at the EthBerlin event last week, had this to say about the development:

We’re still working on the integration but check back in a week and it should be something where we have instructions and you can follow the instructions and get it running on your computer.

Why Is Sharding Important

We need to remember that the chief reason many traders were shorting Ethereum in the markets and expecting it to fall, is the fact that it is slowly being eclipsed by faster networks such as those of EOS, Tron and Zilliqa. The reported transactions per second (tps) – or throughput – of these networks are as follows:

Ethereum is clearly lagging behind. And with more and more DApps being created for the finance and gaming industry, we get to understand why faster transaction time is relevant. With sharding on Ethereum, HODLers and traders can once again reignite their bullish sentiments about ETH.

Another reason why the Ethereum crash will likely continue is the fact that the recent comments by many crypto-experts who confidently stated that the recent decline of Bitcoin to $6,200, was the final one before a total market recovery, might just be wrong.  One such analyst and expert is the ex-fund manager and Billionaire investor, Michael Novogratz, who had this to say in a September 13th tweet:

I think we put in a low yesterday. retouched the highs of late last year and the point of acceleration that led to the massive rally/bubble… markets like to retrace to the breakout..we retraced the whole of the bubble.

Looking at the charts once again, BTC is currently valued at $6,290 and looks ready to sink some more as we approach the September 30th SEC deadline for the CBOE sponsored Bitcoin ETF. If history is to go by, the chances of the SEC approving it are slim and we could be headed for tough times that will include Ethereum dropping some more in the markets.

Check out the latest video from our Editor In Chief on the Crypto Rich show!

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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. The author is long Bitcoin. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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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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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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SonicX
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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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