Kvě 22

Global Cryptocurrency Market is Now Bigger Than Uber, Airbnb, Xiaomi

· May 22, 2017 · 10:30 am

The global cryptocurrency market cap has now blown through that of famous startups like Uber , Didi Chuxing, Airbnb, Xiaomi, and many others.


Global Cryptocurrency Market cap

As Bitcoin and other cryptocurrencies gain traction throughout the world, more money keeps pouring from traditional markets into the cryptosphere. Breaking record highs during the weekend, Bitcoin, Ethereum and others have grown to unprecedented values, adding roughly $25 billions to the global crypto market cap in the last two days.

Currently sitting just under $80 billion, the global cryptocurrency market cap has now blown through that of famous startups like Uber ($68B), Didi Chuxing ($50b), Airbnb ($31B), Xiaomi ($46B), and many others.

Although there is still a long way to go to reach the value of giants like Apple, Microsoft and Amazon, this marks a significant milestone in the cryptocurrency progress.

The continuous rally in the crypto markets is believed to be mostly connected to the recent Japanese law, in which cryptocurrencies are considered as legal payment methods exempt of consumer tax. Not only that but in the midst of political uncertainty and as the traditional market continues to plummet, investors are looking for safe-haven properties that are often provided by gold and now by cryptos like Bitcoin and Ethereum.

Moreover, Bitcoin and altcoins are completely new to most average investors and represent a certain level of technical challenge. However, cryptocurrencies are actually much easier and cheaper to access than the traditional market. Buying stock in these startups is no easy task, as opposed to buying Bitcoin or altcoins, which is also a driving factor in the cryptocurrency rally.

As one Reddit user noted:

People are constantly whining about how hard it is to buy Bitcoin, but try buying into an IPO for one of those startups or just shares off the market. It’s not impossible, but it’s not cheap and it’s not easy. Relatively, crypto has a very low barrier of entry and you can trade as little or as much as you want. There’s no substantial minimum trade cost and fees are near enough to zero to have no impact.

Bitcoin Dominance

In the last month, the cryptocurrency landscape has changed drastically, gathering over $40 billion in market cap and doubling in size In time, Bitcoin has been losing its share of the crypto market at an accelerating rate.

Even though Bitcoin is still the “top dog” with a market dominance of roughly 46%, the change in market cap distribution represents an important shift in the cryptocurrency scene, one that may not be great for Bitcoin itself, but that is certainly great for the cryptocurrency market as a whole.

Bitcoin is likely to remain the leader in terms of coin market cap, given its broader application as a currency (and not as an appcoin or asset) and the relative advantages it has over other currencies such as security, immutability, and decentralization.

However, this change demonstrates that investors are becoming more knowledgeable about blockchain technology in general. Additionally, many newcomers are probably also investing in alternative cryptocurrencies with the hopes of catching the next wave after failing to buy bitcoin for double and even triple digit prices. 

Lastly, this shift in dominance may also be connected to the pressing capacity issues that Bitcoin is facing, preventing it from keeping up the growth of other coins that have yet to face their own scaling challenges down the road.

Paradigm Shift or Bubble?

Although this unprecedented rally is certainly a reason for excitement, many members of the community have voiced their concerns regarding the possibility that we are currently experiencing a bubble similar to the one experienced in 2013, which as we all know, had disastrous results.

Some are even comparing the current Poloniex situation with Mt.Gox back then, given the recent suspicion that Poloniex is manipulating the markets, an idea that isn’t so far-fetched since Poloniex comprises the majority volume on the most valuable altcoins.

The cryptocurrency surge presents signs that can be interpreted from multiple sides. While it is possible to present logical and compelling arguments for many theories, the truth is that cryptocurrencies are a completely new asset class. In other words, no one can predict how this nascent market will behave, especially in the information and internet age. 

One thing is certain, however, there is still a long way to go to reach mainstream adoption. Therefore, we could just be getting starting.

To give you an idea, the current global cryptocurrency market cap would have to grow tenfold to reach that of Apple. While Bitcoin itself would have to be worth roughly $46,000 USD to have the same marketcap as Apple or roughly $700 billion.

What do you think? Are we in a bubble? Will Bitcoin lose its position as the top cryptocurrency? Share your views on the comment section!


Images courtesy of coinmarketcap, Shutterstock

Show comments

Share
Čvc 10

Price Report: Bitcoin is Dominating Argentina

Source: bitcoin

Argentina

Another small rise is in the books. Following a drop to $639, the price of bitcoin has jumped up to about $645 at press time.

Also read: Pounds vs Yen: The Battle Over Bitcoin Rages On

At first glance, this appears to be a meaningless rise. Just a few dollars, nothing to scream and shout about, but considering the circumstances surrounding the halving that has now officially taken place, the results are something to celebrate.

The price of bitcoin fell about 5 percent at midday on Saturday, slumping to the $620 range. This drop was only temporary, though, as just a few hours later the price rose by an additional $20, causing everyone to breathe a deep sigh of relief.

Following the first Bitcoin halving about four years ago in 2012, the price of a single coin dramatically increased. We’re likely to witness a similar spike in the coming weeks, granted these results repeat themselves.

“The impact of the halving isn’t based on size, it’s based on marginal profitability,” explains Erik Voorhees of Shapeshift.io.

But some aren’t looking at the halving as an influence at all, believing action in countries like Argentina could lead the digital currency towards a particularly impressive jump. This is where a few unusual situations come in.

Bitcoin Saves the Day in Argentina

In Buenos Aires, the capital city of Argentina, growing “dial-a-ride” service Uber is facing opposition for allegedly operating without permits or tax-identification numbers. Lawsuits from taxi companies are popping up regularly, and credit card companies have blocked Uber payments. Even city officials are taking a stance.

So what’s Uber done? Wanting to stay in business, the ride-sharing service has turned to bitcoin company Xapo, where it has found security in a bitcoin-funded debit card that customers can use to purchase rides. The card is not used locally; rather, transactions occur out of Gibraltar, an area that doesn’t oversee or block Uber payments. Xapo head Anni Rautio says the process of obtaining a card is easy, and the company has already witnessed several customer requests:

“All they have to do is set up their Xapo and receive it at home, and it’s ready to use… This is a very specific situation with a very specific problem and a very specific solution… Since last week, all Uber users in Argentina have been able to use their Xapo bitcoin debit cards to pay for their Uber rides… This is a win for all local Uber users and drivers, and for Uber as a company, as they are able to continue operations in Argentina through Xapo’s debit card.”

So in its fight to garner financial independence for users, it would appear that bitcoin has chalked up another valiant win.

Do you foresee another massive rise? Post your thoughts and comments below!


 

Images courtesy of Uber, Wikimedia Commons.

The post Price Report: Bitcoin is Dominating Argentina appeared first on Bitcoinist.net.

Price Report: Bitcoin is Dominating Argentina

Share
Kvě 24

Blockchain-based Remittance App AirPocket Comes To Latin America

Source: bitcoin

Bitcoinist_Remittance

Blockchain technology has a lot of potential to disrupt the financial sector, and DigitalX is one of the companies wielding the blockchain for remittance purpose. Now that the company has inked a deal with Telefonica in Latin America, AirPocket will be coming to that region very soon.

Also read: Lisk Expands Team Heading Into May 24 Launch

People active in the world of cryptocurrency and blockchain will have heard of DigitalX before, as the company wields distributed ledger technology for financial purposes. Through its AirPocket mobile app, anyone in the world can become a remittance provider, which established a peer-to-peer network of money transfer agents.

Bringing AirPocket to the masses has been a challenge for DigitalX, though, but the company recently partnered with Telefonica in Latin America. Telefonica is the leading Latin American telco, and this new partnership will ensure the DigitalX mobile app will make its way across the entire continent over the next few months.

Blockchain Remittance Through AirPocket and DigitalX

According to DigitalX founder and executive chairman Zhenya Tsvetnenko, the deal with Telefonica is the first of many global partnership announcements. Keeping in mind how DigitalX takes an 11% commission for every AirPocket transaction, bringing this solution to the rest of the world is of the utmost importance.

AirPocket is often touted as being the “Uber of remittance”, as it leverages the sharing economy principle. Additionally, by using a blockchain to complete these transactions, DigitalX has a working example of how this technology can disrupt the financial sector on a large scale while making the process more convenient for its users.

Zhenya Tsvetnenko continued by stating:

“The Telefónica partnership is transformational for our company, and I am not only talking from a revenue opportunity perspective. The fact is, this deal puts our emerging technology company on the global stage and cements our position as a first mover in providing a blockchain application of commercial scale.”

This is a significant partnership between DigitalX and Telefonica, which goes to show AirPocket and its underlying blockchain technology hold a lot of merit for the future. Transferring cash and digital funds between users in a secure and timely fashion is something a lot of consumers have been looking for, and the solution will be coming to Latin America soon.

What are your thoughts on this partnership? Will AirPocket help put blockchain technology on the map in the financial sector? Let us know in the comments below!

Source: The Australian

Images courtesy of Shutterstock, AirPocket

The post Blockchain-based Remittance App AirPocket Comes To Latin America appeared first on Bitcoinist.net.

Blockchain-based Remittance App AirPocket Comes To Latin America

Share
Led 14

Adyen Can Bring Bitcoin To Major Businesses Like Netflix And Uber

Source: bitcoin

Adyen Can Bring Bitcoin To Major Businesses Like Netflix And Uber

In the world of finance, there is no shortage of companies willing to process payments on behalf of businesses. Adyen is one of the most-valued European payment processing companies in the world today, and they have recently announced new partnerships with Netflix, Easyjet, and others. What makes this news even more interesting is how Adyen partnered with BitPay last year to work with Bitcoin payments as well.

Also read: A Payment Processor’s Perspective: Interview with Moneris

Adyen Announces New Partnerships And Major Growth

With so many companies to compete with in the payment processing scene today, it is hard to stand out from the rest. Adyen is one of the companies managing to make a new for itself despite fierce competition. In fact, the Dutch company reported a revenue of US$350m throughout 2015, which is more than twice the amount generated during 2014.

In a surprising turn of events, the revenue increase is mostly attributed to the list of existing merchants relying on Adyen to process payments. A lot of these companies have been able to increase their overall sales, which is a good sign for online commerce as a whole. But the good news didn’t end there, as Adyen announced several new strategic partnerships.

Among the list of new partners are popular brands such as Netflix, Easyjet, and Burton. Considering how companies such as Uber, Spotify, and Facebook have been using Ayden’s services for quite some time now, the future’s looking very bright for this European startup.

However, there are some things that could prove to be a worry for Adyen in the future. According to founder Pieter van der Does, 10 percent of the merchants using Adyen’s services generate close to 90 percent of the company’s total revenue. While these numbers are not uncommon in the payment processing industry, the newly signed partners will hopefully help even the playing field in the future.

What sets Adyen apart from any other payment processor is how the company lets merchants take payments without going through banks. As a result, this creates a global payment ecosystem that works for customers all over the world. This also opens up a lot of opportunities in the mobile space, which represents close to half of the company’s transactions.

Bringing Bitcoin To Merchants All Over The World

Very few people are aware of Ayden also accepting Bitcoin as a form of payment. During the summer or last year, the Dutch startup partnered with BitPay to bring Bitcoin payments to merchants around the globe. Or to be more precise, any of their clients would be able to accept Bitcoin payments in a heartbeat if they want to do so.

Now that Adyen has partnered with Netflix – who have hinted at a potential integration of Bitcoin payments in the future – the rumours are becoming more persistent. Even companies like Uber, Facebook, and Easyjet could start accepting Bitcoin payments as soon as tomorrow. Consumer demand will force their hand in that regard, and once enough customers ask for Bitcoin payments, companies will have no choice but to accept digital currency payments.

What are your thoughts on the progress made by Adyen so far? Will they help bring Bitcoin payment integration to more prominent retailers? Let us know in the comments below!

Source: Telegraph UK

Images courtesy of Adyen, Shutterstock

The post Adyen Can Bring Bitcoin To Major Businesses Like Netflix And Uber appeared first on Bitcoinist.net.

Adyen Can Bring Bitcoin To Major Businesses Like Netflix And Uber

Share