Connect with us

Cryptocurrency

Brace Up for a possible Post-Halving Price of $55,000 per Bitcoin – CNBC’s Joe Kernen

Published

on

Why Bitcoin Is Still The Leading Cryptocurrency When It Comes To Cryptocurrency Trading

Joe Kernen, popular co-host of CNBC’ Squawk Box, has recently suggested on the show that the king coin could reach $55,000 by next year’s halving. This is one of a few bullish comments Kernen has expressed in recent times.

What Could Push Bitcoin that High?

On Monday the 29th of July, while talking to the episode’s guest – Fairlead Strategies founder and Managing Partner, Katie Stockton – Kernen asked her whether or not she believed that Bitcoin could surge more than 470% and hit $55,000 by next year. One of the reasons Kernen believes this could happen is Bitcoin’s upcoming halving.

Expected to happen by May 2020, the halving will see a reduction in the number of Bitcoins being mined, by exactly half. Miners currently receive 12.5 BTC per block and this number is expected to drop to 6.25 BTC. This was done from Bitcoin’s inception as a way to control inflation for the coin and to also make sure that only 21 million coins will ever be produced. Bitcoin’s halving takes place after every 210,000 blocks which roughly takes four years.

The traditional laws of supply and demand dictate that prices will increase if supply is reduced and demand is still growing. Also, there is usually a recorded increase in Bitcoin’s value after every halving since its inception more than a decade ago. Some analysts already posit that Bitcoin could hit $20,000 before the end of the year and if that happens, then it’s possible that it could be higher than that figure, post-halving.

The Stock to Flow Model

Kernen also mentions the Stock-to-Flow ratio as a possible explanation for a Bitcoin surge. This model tries to make a connection between the number of assets already produced and possible inflation. It posits that Bitcoin has a stock-to-flow ratio of 25, derived from the calculation that at current speed and with halvings, the current amount of produced Bitcoins, about 17.5 million, can only be re-produced after another 25 years.

This ratio, according to the model, is tied to Bitcoin’s value and will rise after the next halving. If this happens as expected, the model proposes that Bitcoin’s market capitalization could hit $1 trillion from the $170 billion where it is. A market cap this high supports a value of $55,000 per Bitcoin.

Bitcoin

J.K. Rowling and Elon Musk Engage in Twitter Conversation About Bitcoin

Published

on

J.K. Rowling and Elon Musk Engage in Twitter Conversation About Bitcoin


Just recently, the CEO of SpaceX – Elon Musk took to Twitter to reveal his current holding of Bitcoin. The conversation ensued during an effort to educate British author and film producer – J.K. Rowling on the subject of cryptocurrencies. Following a tweet originally referred to CoinDesk’s senior reporter – Leigh Cuen by the Orator of the Harry Potter fiction on Saturday, for an explanation to bitcoin’s operability.

J.K. Rowling subsequently received Musk’s reply among several others from Bitcoin’s advocates and cynics alike; such as the co-founder of Ethereum and Bitcoin Magazine– Vitalik Buterin, among many others. Notably, the author’s tweet drew some attention to the tune of 2,800 replies, as at the time of writing.

Furthermore, the co-founder and CEO of Tesla, Inc., emphasized that the bulky issuance of currencies by the central banks of various economies is making the digital currency – Bitcoin, more solid in juxtaposition to fiat. Musk also went on ahead to convey his views towards digital money as being positive, even though he currently owns a quarter of a Bitcoin as stated in his tweet that reads;

“I still only own 0.25 Bitcoins btw.”

Yet, Cuen replied Rowling with a reassuring statement while providing her with guides to sample use-cases of Bitcoin. Cuen stressed this in a tweet with the message;

“Hi! My D.M.s are open if you want to chat w/out onlookers. The very short version is: Bitcoin is money fueled by a community of contributors. There is no king or central bank in charge. There are countless stories we can use to explore the ethics of a world w/global currency.”

Albeit, Rowling expressed her discontent with regards to the explanations she received, as her curiosity rapidly became debased by the myriad of responses she received. She disclosed her uneasiness towards the topic in question – with a bit of sarcasm while tweeting the following;

Another noteworthy reply is that of Vitalik Buterin, who added that;

“It is a digital currency. There’s ~ 18m units of it. It is not backed by anything, it’s just valuable because it is, like collectibles. There’s a network of computers (which anyone can join) that maintains a decentralized global excel spreadsheet of how many coins each person has.”

Although, Rowling might have admitted being woozy before publishing these tweets, however, her views on the digital currencies and Bitcoin are unlikely to change when she becomes sober or in the foreseeable future.

Continue Reading

Cryptocurrency

Ripple Sends $26 Million Worth of XRP to Jed McCaleb, XRP Army Fears Another Dump in Price

Published

on

Ripple Sends $26 Million Worth of XRP to Jed McCaleb, XRP Army Fears Another Dump in Price

Time and again, several members of the XRP community have opined that the massive dump of the crypto asset in the market has impacted on its price, negatively. Now, there are speculations for another dip in XRP’s price. The latter is after Whale Alert informed on September 7, 2019, that 100 million XRP tokens have been transferred to Jed McCaleb, Ripple’s co-founder. 

Ripple Sends XRP Worth About $26 Million to McCaleb’s Wallet

According to Whale Alert, Ripple transferred 100 million XRP valued at $26,322,440 to Jed McCaleb’s wallet. The transfer has led to the sentiment in the crypto space that XRP might tank below its $0.262 price today. Also, the opinion is due to McCaleb’s reputation for dumping huge amounts of XRP in the market.

McCaleb is Ripple’s co-founder, and in 2014, Ripple transferred 9 billion XRP to him as his share for founding the company in 2012. However, the blockchain company entered a seven-year agreement with McCaleb to control how much XRP he can sell in the market yearly.

Per the agreement, the co-founder could sell $10,000 worth of XRP per week in the first year, $20,000 per week in the second, third, and fourth years, and “750 million XRP per year for the fifth and sixth years.” In the same vein, he could choose to dump 1 billion XRP yearly for the seventh year, and 2 billion XRP yearly after the seventh year.

McCaleb’s Dump of XRP Impacts of Asset’s Market Price

Given that this is the fifth year since the agreement was made, McCaleb can choose to dump thousands of XRP tokens daily. In 2014 when he announced his plans to sell a significant part of his XRP holdings, the value of the asset declined by 40%. As such, the continuous dump of the asset has also been pointed out as one of the reasons why it is not spiking like other top cryptocurrencies.

Asides from being reputable in the XRP community, McCaleb is also a name associated with Mt Gox, one of the first cryptocurrency exchanges. He founded the platform and sold it off years before its hack. Similarly, McCaleb is the creator of Stellar (XLM), the 11th largest cryptocurrency by market cap.

Nonetheless, the crypto community has aired its views about the potential for McCaleb to release another share of XRP to the market. Crypto BitLord, for instance, said: “Wow. Another cool $26M Jed can unload at market. This shits out of control.” Another remarked that: “know, right?! Private businesses shouldn’t be allowed to exist. The name “Jed” should be banned.”

Continue Reading

Trending