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David Schwartz of Ripple fame and XRP's market dynamics - Global Coin Report
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David Schwartz of Ripple fame and XRP’s market dynamics

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Ripple
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Ripple’s XRP has been remarkably resilient during the nightmarish days we’ve seen in the crypto market over the last couple of weeks. Its losses have been in the single-digit zone, while most others have been in two numbers.

In the current adversity, it’s even managed to displace Ethereum and become the world’s second largest cryptocurrency by market capitalization. Mind you, that doesn’t mean it’s not losing value. It is, but it’s going down smoothly while many other assets (Bitcoin included) have been in free fall.

The token is trading at $0.354 as we write this, which means it’s approaching its first support level ($0.32323). If it reaches it, it could bounce back (doubtful in the current bearish general market) or go down even further to the second support level of $0.26704.

Things being what they are, it seems a good idea to stop for a minute and to review some of the basics.

Almost exactly one year ago, David Schwartz (Ripple’s Chief Technical Officer and former Chief Cryptographer) posted a series of tweets in his official account in which he explained why a higher price for the XRP token is good for everybody (whether you hold XRP or not). It’s all about market dynamics.

It all comes down to this: if XRP becomes really expensive, say, a million dollars per token, then a lot of money would flow in the market with the movement of only a few tokens. If you owned a million dollar XRP token and would like to buy a million-dollar house, then you would sell your token, get your million, and the market wouldn’t feel a thing because only a token was traded.

The current situation is the opposite. If you wanted to get a million dollars out of your current XRP wallet (we wish you’re so lucky), you would need to sell 2.79 million tokens. That may not seem like a lot if you take into account that 1.17 billion XRP have been traded only in the last 24 hours.

But since you are not the only crypto aficionado trying to cash out of XRP, the added pressure of all those who, like you, want to use those million bucks for something else, will move the market a lot while, if the price was much higher, the same amount of money would still move around, and the market wouldn’t feel a thing. There’s a name for this phenomenon: cheaper payments.

The community reacted favorably to Mr. Schwartz’ message. One of his followers replied to the tweet in this terms:

“I believe you hit the nail on the head. This brilliant plan will involve multiple entities working in coordination. I 100% agree this will happen. But regulatory clarity via a global framework, possible we see this at the upcoming G20 meeting. Once established, plan will commence!”

An overly optimistic XRP enthusiast wrote,

“I’m ready guys! I’m in front of the factory @Lamborghini waiting for 1 Mil. #XRP just give me a sign!”

And why should you care about this? Especially if you’re not a Ripple fan? This should assure you that the crypto market will recover and prices will go up again. Why? Because it’s in every coin’s, every investor’s and every trader’s best interest. So don’t despair. Just be patient, disciplined, keep watching the market and keep reading our articles.

For real-time trade alerts and a daily breakdown of the crypto markets, sign up for Elite membership!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and 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 Flickr.

Bitcoin

Why Blockchain Projects Keep Failing

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If you’ve been keeping up with news coming out of the blockchain community over the past year, you’ve probably heard countless projects hyped as the next best thing—only for them to fall off completely off the map a few months later. While some of these projects offered no practical solutions and seemed destined to fail, others creatively used blockchain technology to enhance the way we perform day-to-day tasks.

So, What’s the Problem?

For starters, many of these founders have no real experience running a business or managing finances. Instead, teams are usually comprised of programmers and tech geeks with the ability to develop blockchain-driven apps, but have no clue about project management, allocating resources, effective team building or marketing.

What’s more, when you look at the average blockchain start-up’s website, you’ll probably find a list of team members with accolades a mile long. And many of these “achievements” are in similar blockchain projects that have yet to take off. This makes it hard to distinguish between what is hype and what is credible information, which scares off all but the high-risk investor.

Project Success Starts at the Team Level

The sudden interest in cryptocurrency and blockchain technology can be compared to the California Gold Rush. Everyone wants to get in on the ground floor so that they can make as much money as possible.

Unfortunately, this mentality isn’t just…

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Altcoins

STEEMIT Running Out Of STEAM?

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Steemit
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Has Steemit seen its glory days run dry? There have been many rumors that the CEO Ned Scott has pushed the company to the blockchain focus that he forgot about Steem being a social media platform. Now, these are just things some of the former employees have been heard saying, but it is a rather interesting take as to what is going on. Give the following video a watch where I break down what is happening with Steem. I also give my thoughts on what may happen to other large ICOs and how we may see this trend continue as we have seen with ConsenSys laying off 10% of their workforce.

If the big name projects are starting to do this will it also have a trickle-down effect on other ICO’s which have no products and are running out of cash? I definitely think so, and I also see this negatively affecting Ethereum for the mid-term. The question many have been asking is just how long can the bottom 1800 projects last with the current market conditions? How many ICOs did not liquidate their Ethereum and now are stuck with 1/10th the cash flow or more in some cases, how will they pay to continue operations? What about the growing number of projects laying off employees like…

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Altcoins

The Three Biggest Problems with Crypto

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In this bear market, everybody’s asking the same questions. Why is Bitcoin falling? When will the market turn around? Is this the end of the crypto boom?

However, before we can answer questions like these, we need to step back and do an honest appraisal of where our industry stands and what is really holding it back. Despite its growing popularity, cryptocurrency still struggles to gain mainstream appeal. While crypto has managed to distance itself from the early days, when it was used to buy illegal goods online, the currency still conjures up negative feelings for a lot of people unfamiliar with the technology — and all too often, for good reasons.

Cryptocurrency is still relatively new, which means that many casual users are still exploring different ways to use crypto in their day-to-day lives. Unfortunately, this lack of knowledge leaves a lot of users vulnerable to scammers seeking to take advantage of their ignorance and inexperience.

We’ve contacted various types of people within the crypto community, surveying newbies, traders, investors, and professionals, asking what the biggest problems in crypto are. We found there to be three major problems holding the industry back:

Scammers

Failed projects

Immature technology

Who hasn’t been scammed at least once?

The crypto community is overrun with scammers taking advantage of inexperienced and naive users. What’s more, scams don’t only occur on an individual level.…

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