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Veteran Venture Capitalist Predicts Bitcoin Will Fall to $0-$500 And Eventually Be Replaced

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Veteran Venture Capitalist Predicts Bitcoin Will Fall to $0-$500 And Eventually Be Replaced

Even though Bitcoin is yet to beat the Binance Coin (BNB) as 2019’s most successful crypto asset, it is still doing remarkably well and predicted to do even better before the year runs out.

At this time, Bitcoin has dropped below $8,000 and while some think it’s a bad sign, there are many bulls who have predicted before now, a significant pullback as a sort of prerequisite to another imminent surge. The past few weeks have also been unstable for the coin as the prices have been swinging back and forth in a bid to properly adjust to the current influx of retailers and institutions for the market.

Bitcoin Will Be Replaced

Not everyone is exactly bullish and there have been a few bearish forecasts on the market. However, there probably haven’t been any projections as gloomy as Jason Calacanis’. Calacanis, who is a very popular venture capitalist, has predicted that Bitcoin could drop all the way down to $0.

The investor who is known as one of the initial financiers of popular ride-hailing and ride sharing app, Uber, has said he thinks that the chance that Bitcoin will likely be relegated by a new technology is quite high.

According to a recent tweet posted by Calacanis,

“My position remains the same. #Bitcoin will likely be replaced by a new technology & it’s manipulated. It’s possible it’s built to last, but not probable, so keep your position to an amount you’re willing to lose. For most, that’s 1-5% of net worth. [Bitcoin] will likely go to 0-$500.

Could Newer Cryptos Threaten Bitcoin?

Already, there are thousands of different cryptocurrencies available in the market and only a few can even begin to match up to bitcoin in popularity and market capitalization. However, there are a few giant firms who are not only looking to use crypto in their businesses but are also working on creating their own assets. Facebook and J.P. Morgan, for example, are two of the foremost and the latter has already issued the JPM Coin.

This much interest in cryptocurrency has had a significant effect on Bitcoin but it’s also being said that big firms like Facebook have the capability to create a cryptocurrency and use its billions of subscribers all over the world to displace Bitcoin.

Bitcoin is currently still atop the crypto list but could Facebook’s recently announced Globalcoin do any real damage to the number one coin?

Bitcoin

Bitcoin Consumes More Power Annually Than Switzerland, A Study At Cambridge University Reveals

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Bitcoin Consumes More Power Annually Than Switzerland, A Study At Cambridge University Reveals

The recent price upheaval seen in cryptocurrencies has been the hot topic in the cryptocurrency community. Crypto traders and investors have had a rough couple of days as this volatile market keeps shifting by the day.

At press time though, most cryptocurrencies, led by bitcoin seem to have struck a purple patch as they are recording small gains over the last 24 hours.

However, at the University of Cambridge, a certain group of researchers have been busy developing an index that computes the amount of electricity used by the bitcoin network.

This online tool indicates that the bitcoin network consumes more electricity than Switzerland. This revelation has left many in shock. 

It is not the first time we’ve heard bitcoin and Switzerland in the same sentence. Not so long ago, a lot of conversations have sprung up concerning the correlation between the price of bitcoin and Swiss franc, Switzerland’s fiat currency. Now with the ongoing economic uncertainties, bitcoin has been recognized as a safe haven by investors alongside Swiss franc.

Bitcoin’s Energy Consumption Exceeds That of An Entire Nation

This time around, the conversation is centered on bitcoin’s electricity consumption. This research was prompted by concerns over the impact of bitcoin mining on the environment.

Cambridge Centre for Alternative Finance at the University of Cambridge developed an index known as Cambridge Bitcoin Electricity Consumption Index (CBECI) to calculate the amount of electricity that powers bitcoin in real-time then calculating annual power usage.

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Bitcoin

The Crypto Whale that Triggered an 8.5% Dip in Bitcoin (BTC) Prices

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A Bitfinex investor staked a 20,000 bitcoins short order and gambled that BTC prices would slide in the near term. Within a fortnight, the BTC price dropped to $10, 765 from a whopping $11,900. After a span of a few hours, the valuation of the crypto market fell by over $20 billion.

Market experts have been wondering whether a quick upward recovery is even possible. Some analysts, like the incredible – Josh Rager were quite skeptical if the price of BTC went below $11, 500. Below this point could prompt even a further drop from $10, 000.

Whale movements seem to be key influencers in the price movements of crypto markets. Where the effect on the market is not rapid sales of crypto assets (Let’s say BTC); the trivial effect is maybe a dip in the prices and market capitalization.

Minor corrections of Bitcoin markets has resulted in the declining power of top crypto assets against the pair of BTC/USD. Litecoin had recorded a 5% rise against the U.S dollar during the weekend but has dropped by 5%. Other crypto assets that have slid by an average of more than 5% include, Ethereum, EOS, Bitcoin cash, and Binance Coin.

Experts predict the 8.5% BTC drop was a result of technical factors. The large short contract created panic among many retail investors. As a result, they end up selling their assets and pulling down the market. It was such an abrupt drop, however, experts believe a bullish fundamental catalyst still exists around the market. This bullish expectation, they predict could improve sentiments within crypto markets. 

Analysts identified  a generally positive trend for BTC from factors such as; 

  • Opening of trading venues such as Bakkt and Fidelity in the second quarter of 2019
  • The gradual increase in retail investment
  • Rising institutional interest

Short term traders are however skeptical and remain wary of the declining trend of bitcoin prices. An extended correction of market insights forecast that crypto assets tend to follow the bitcoin movement. Therefore, illustrating intensified markets moving both to the upside and the downside.

However, some traders are very optimistic and have spotted positive medium-term indicators in the monthly BTC trend. Despite the fact, investors did not expect an abrupt pullback in the magnitude of 8.5%. Investors have faith that pullbacks are quite necessary for the stabilizing of crypto market foundations.

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