Connect with us

Bitcoin

Will Bitcoin Hit Zero In 2019?

Published

on

will Bitcoin hit zero
READ LATER - DOWNLOAD THIS POST AS PDF

So far, the entire year of 2018 has been dominated by the bearish market, and it appears that things will not change in the few short days that are left before we enter 2019. Due to the current situation, many have taken different stances when it comes to the future of crypto, and its leading asset — Bitcoin (BTC) itself. While there are plenty of those who believe that the bear market is just a temporary issue, such as John McAfee, there are also those who claim that cryptocurrencies are spiraling down to their doom. Some are even asking will Bitcoin hit zero in 2019?

The mining dilemma

One of the biggest problems that cryptos are believed to have at this point revolves around the process of mining. As many are already aware of, mining is a process of using expensive computers to solve complex mathematical equations which lead to validating transactions made on top of the blockchain.

By doing this, miners themselves earn a certain amount of the cryptocurrency whose blockchain they service. These come as a type of reward for validating transactions, and that is pretty much what mining really is. The process itself is created in a way that makes it more and more complexed as more coins are put in circulation. While resources necessary for mining — such as computing power and electricity — continue to rise, Bitcoin rewards continue to drop.

This would still be able to work if Bitcoin price continued to increase, which is currently not the case. As a result, numerous miners are opting to leave, and even the entire mining facilities are being shut down. The entire network takes a hit because of this, as transactions will take longer to be validated, which will cause people to eventually stop making them.

Many are asking why did Bitcoin become so big in the first place, considering the fact that the process of running its network is so obviously flawed. One answer provided by analysts is that Bitcoin is the most popular coin simply due to the fact that it was the first crypto to appear. However, while these analysts claim that Bitcoin might eventually fail, it is entirely possible that another cryptocurrency, one with the best available technology, will take its place and lead the crypto space of the future.

This situation can be compared to the one regarding internet search engines. While the entire world has heard of Google, not a lot of people remember the first search engine to ever appear online, called AltaVista.

The Bitcoin network has a number of other issues

While mining is a big part of Bitcoin’s potential downfall, it is certainly not the only problem with this coin. Another big flaw is Bitcoin’s inability to scale. Its network can only process about three or four transactions at once. Ethereum, for example, is significantly better with its 15 TPS, although by today’s standards, this is also nowhere near what the crypto space requires. Visa’s payment network, for example, can work through thousands of transactions per second. And, while there were numerous attempts to make the BTC network artificially more scalable, the results did not achieve much as of yet.

Another big issue includes the lack of anonymity, with BTC being pseudonymous, at best. Because of problems like these, there are currently over 2,000 different crypto projects on the market, attempting to offer better solutions. While none of them threaten Bitcoin’s dominance right now, some are starting to get closer to actually endangering its position.

Still, the situation might not be that bad, as it will likely take years before Bitcoin actually falls if it ever happens at all. Bitcoin is very unlikely to fail as soon as 2019, although there are reasonable concerns regarding its future further down the line. While investors are advised to hope for the best, they should also be prepared for the worst.

For real-time trade alerts and a 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/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 Pexels

Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

Published

on

collateralized debt position
READ LATER - DOWNLOAD THIS POST AS PDF

While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

Continue Reading

Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

Published

on

Hodium
READ LATER - DOWNLOAD THIS POST AS PDF

I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

Continue Reading

Bitcoin

Behold The Cryptopreneurs – Overcoming The Obstacles Facing The Blockchain Industry

Published

on

READ LATER - DOWNLOAD THIS POST AS PDF

Integrating blockchain technology is fast becoming a necessity for enterprise ventures and small or large businesses, but with a growing number of choices in the tech revolution, it’s difficult to pick a direction without feeling overwhelmed or taken advantage of. This is where BEHOLD THE CRYPTOPRENEURS comes in.

Private keys, the myth of anonymity, and the battle against anarchist ideology are only a few of the difficult challenges faced by businesses that want to incorporate blockchain into their culture. Author Dennis H. Lewis guides the reader through those challenges and helps them discover the true potential of investing in this new economic paradigm.

Every business has pain points that must be overcome in order to branch out and thrive in an ever-changing commercial environment. Blockchain has real world solutions and cryptopreneurs are not limited to the cryptocurrencies they invest in but rather how they seize economic and technological opportunities to make it work for them.

Innovation, trust, and solutions can differentiate your business from all the noise, but without a solid marketing plan, a cryptopreneur can have the best idea and never get far. Remember: a million great ideas times zero market presence equals zero success.

Investors want to know there is public interest and enthusiasm in a project before they commit any money to it. As a cryptopreneur, you are tasked with generating that interest from the…

Continue Reading

Elite