[unable to retrieve full-text content]
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.
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
eToro has revealed that the number of users its Bitcoin and Ethereum has soared while trading volumes have “exploded” on its platform since the beginning of the year.
eToro Runs Up Trading Volume 4,500%
So far this year, eToro users trading CFDs (contracts for difference) in cryptocurrencies his risen by four times compared to the same period in 2016. Since the beginning of the year, cryptocurrency trading volume on eToro has soared by a whopping 4,500%.
Since Bitcoin trading has been supported by eToro since 2014, one major reason for this surge can be attributed to the platform’s addition of Etheurem in the beginning of the year.
The price of Ethereum has jumped from about $15 USD per Ether (ETH) to over $65 today in just the past two months. This is reflected in 90% of Ethereum traders buying the asset since it was launched on eToro. Meanwhile, 80% of Bitcoin traders have been buying up the cryptocurrency for a consecutive fifteen months, eToro notes.
It should also be noted that eToro provides a feature called “copy functionality.” This lets novice users copy the trading strategies of its most successful cryptocurrency traders.
‘Cryptocurrency is the Future of Forex’
Commenting on this impressive growth, Senior Markets Analyst at eToro, Mati Greenspan, believes that “Cryptocurrency is the future of forex.”
[O]ver the last 12 months we’ve seen a 4x growth in traders accessing this market. But the volume of trading has exploded even more than this, with a huge 4,500% jump.
As the total cryptocurrency market capitalization recently passed $30 billion, Greenspan explained, that its users have been reaping ‘significant rewards’ from this jump in prices and a nascent market that has doubled in just the past four months.
“The rapid growth in the adoption and price of cryptocurrencies only marks the first few steps on the long-journey to establishing cryptocurrencies as a dominant force in forex trading,” he continued.
We expect cryptocurrency trading volumes to get much bigger over the coming years.
As Bitcoin is once again above Gold market price, surging to record highs, the cryptocurrency market should continue to attract even more traditional investors looking for the next big thing.
Recent news of the Securities and Exchange Commission (SEC) willing to review its rejection of the Winklevoss Bitcoin ETF is just the latest in a string of positive news for traders to be bullish on Bitcoin and cryptocurrencies as a whole.
Will the cryptocurrencies market continue to attract traditional investors or will we see another repeat of the dot-com bubble? Share your thoughts below!
Images courtesy of Shutterstock, Twitter, eToro
Bitcoin price is now up almost 30% since the start of the year as the world’s first decentralized cryptocurrency shakes off regulatory woes and internal politics.
Outperforming All Fiat, Almost Every Stock
Who needs an ETF when you can just buy BTC? Bitcoin price is up almost 30% since the start of 2017 when the latest bull-run was just warming up.
Since January, the world’s first decentralized cryptocurrency has shrugged at its ETF rejection, Chinese exchange woes, and hard fork fears to once again take the lead over all fiat currencies for the third straight year.
Bitcoin price is also seeing bigger gains than most popular stocks including Apple, Facebook, Amazon, and Google to boot.
From the traditional sphere of finance, only Moneygram (50%) and Tesla (41%) stocks saw a bigger increase than Bitcoin price. Additionally, Gold, whose price per ounce was matched by BTC in the beginning of March, has also seen an 11% gain this year, also outperforming all fiat currencies amid global economic uncertainty.
Meanwhile, the top three fiat currencies thus far include the Mexican Peso (11%), Russian Ruble (10%), and the Japanese Yen (6%).
At this rate, traditional investors should take notice as BTC is positioned to reign supreme over all national fiat currencies in seven of the last eight years. The only year Bitcoin price saw a decline was 2014.
Bitcoin Price Aims for Higher Highs in 2017
There are several reasons for why Bitcoin price is currently climbing as explained here. However, the biggest factor at the moment is the increasing possibility of Segregated Witness (SegWit) activation.
First and foremost, SegWit technology is a transaction malleability fix. Additionally, it also raises network transaction throughput, which is expected to alleviate scaling limitations for the time being.
Meanwhile, the push towards SegWit in other cryptocurrencies such as Litecoin, Syscoin, and DigiByte has resulted in a major price increase for each one. Now, many commentators are expecting Bitcoin price to break its all-time high of around $1,277 USD as SegWit activation is becoming more likely this year.
Litecoin price has quadrupled after its founder Charlie Lee announced supporting SegWit with activation now imminent. Bitfury CEO, George Kikvadze, believes BTC price could also rise significantly following SegWit activation on Bitcoin.
LTC Segwit at 75% -> price 4x ; BTC Segwit at 75% -> delta of $60 bln in MC gain? & that capital would do so much to further promote BTC
— George Kikvadze (@BitfuryGeorge) April 24, 2017
Simultaneously, support for a competing solution, Bitcoin Unlimited, appears to be waning. Today, its node count has plummeted from about 730 to 259, according to Coin.dance, though the exact reason is not yet clear.
Moreover, 88% of Bitcoin businesses now “support” or are “ready” for SegWit with 6% against. While 23% support Bitcoin Unlimited’s Emergent Consensus proposal with 30% against.
Will Bitcoin once again be the top dog by the end of 2017? Will it break its all-time high? Share your thoughts below!
Images courtesy of Shutterstock, Twitter, Blocklink.info
BTC price rose higher after positive news regarding the SEC and its new regulations that are expected to boost small Bitcoin businesses.
Building on ‘Productive Relationship’
A memorandum of understanding (MOU) between the US Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA), signed Friday, will see the two bodies share information related to ensure new crowdfunding regulations are effective for small businesses.
The new rules will make it easier for entry-level businesses to raise funds via exceptions to restrictions governing intrastate crowdfunding.
“The agreement not only builds on an already productive relationship between the SEC and state regulators, it also offers additional insights and protections as we help companies grow and create jobs while providing new opportunities to investors,” SEC Acting Chairman Michael S. Piwowar commented in an accompanying press release.
Bitcoin Reacts with Relief
The move is generally seen as a beneficial step for cryptocurrency and Blockchain startups, with hurdles being removed for the US ecosystem to become more innovative and competitive.
Enthusiasm was reflected in continued Bitcoin support, the digital currency’s price crossing the $1,100 barrier once again.
“This agreement will strengthen collaboration among state and federal securities regulators to help expand small-business investment opportunities while also protecting investors,” continued Mike Rothman, Minnesota Commissioner of Commerce and President of NASAA.
Ongoing dialogue is essential to carry out our responsibilities going forward. With this MOU in place, we have an opportunity to share information that will bolster our efforts to support small business capital formation and prevent fraud.
All Eyes on March
The press release meanwhile outlines the new options available for the fintech startups themselves.
“Companies now can also raise up to $5 million per year through other amended rules, which could facilitate the development of regional offering exemptions at the state level to permit companies to raise from investors in a specific region,” it confirms, the limit having previously been $1 million.
In addition, companies:
will have more flexibility to engage in intrastate offers through websites and social media without having to register their offering with the federal government.
The move comes at a crucial time for the SEC in particular as it prepares to deliver its final verdict on allowing the Winklevoss Bitcoin ETF. The hotly-awaited decision is expected March 11th, with many predicting highly favorable consequences for Bitcoin’s propagation and value in the event of a positive outcome.
What do you think about the SEC move? Let us know in the comments below!
Images courtesy of Shutterstock, coinmarketcap.com