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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

HODLing Stellar Is A Good Plan For 2019

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HODLing
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HODLing, or holding on to a certain asset or assets has always been an extremely useful investment strategy, even before cryptocurrencies were even imagined. Now, with the market being more uncertain than ever, many are wondering what is the right thing to do with the coins in their possession.

Of course, things change depending on the coin in question, but today, we are going to talk about why it is a good idea to hold on to your Stellar (XLM) in 2019.

Why You Should Hodl Stellar (XLM)

The crypto market is rich with hundreds, and even thousands of different projects at this point, and separating valuable ones from those that are destined to slowly fade away can be tricky. However, even the biggest skeptics believe that Stellar is a coin that is here to stay.

XLM was first launched in 2014, and for a long time now, it has been among the top 10 cryptos by market cap. It is an open-source, decentralized protocol that allows users to send fiat currencies by using cryptocurrency as a method of transport. In a lot of ways, it is very similar to XRP. However, the biggest difference is that Stellar aims to offer its services to regular people, while XRP is more interested in working with banks and financial institutions.

Nevertheless, sending money, especially when it comes to cross-border…

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Altcoins

Reasons To Invest In Electroneum In 2019

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Electroneum
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2018 has been quite a rollercoaster for the crypto space. Coins went up and down more times than anyone could have guessed, not to mention two massive market crashes. However, in a few short weeks, the year will be over, and a new, positive period for the crypto world is expected to arrive.

While there are many predictions for 2019, today we are only interested in one thing — Electroneum (ETN). A lot of people quickly took notice of this coin, and many believe that it is among the coins of the future. Indeed, it has received a lot of attention, and many are interested in why that is, and why investing in it is a good idea. So, let’s take a look at a few reasons why you should invest in ETN in 2019.

1) It is fast

Speed and precision of any service have always been very important to people. This importance is even greater when making a profit depends on it. Electroneum developers were aware of this when they created it, and the coin is up to 5 times faster than Bitcoin. This means that ETN transactions can be confirmed much faster, which in turn reduces fees and waiting time.

Furthermore, there are also plans to create Electroneum Virtual Currency Exchange, which will allow the project to act as an exchange. However, the even…

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Bitcoin

SEC Postpones Bitcoin ETF Decision Once Again

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Bitcoin ETF
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The new announcement by the US SEC (Securities and Exchange Commission) states that the decision regarding the potential approval of several applications for a Bitcoin ETF (exchange-traded funds) is once again postponed. This time, the SEC declared that the decision will be made by February 27th, 2019.

The application requesting that VanExk SolidX BTC fund get s listed on Cboe BZx Exchange that was published on July 2nd needs to be given order by the commission within 180 days. Originally, the deadline for doing so was December 29th. However, the SEC decided to extend the period for another 60 days, effectively moving it to February 27th.

The SEC stated that designating a longer period for making a decision was found appropriate, as more time is needed in order to properly consider the rule change.

Cryptocurrencies need a sufficient monitoring mechanism, claims SEC chairman

Recent reports claim that the SEC received over 1,600 comments after requesting the public opinion regarding the ETF applications issue. In the past, the SEC rejected many such applications, some of which were even submitted by SolidX itself. In addition, they also rejected the applications submitted by Gemini, the exchange owned by Winklevoss twins. Brothers were attempting to gain ETF approval ever since 2013, although to no avail.

Other applications were also submitted by Direxion, ProShares, as well as GraniteShares. The SEC rejected them…

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