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When Cryptocurrency Will Crash

If The Bitcoin Bubble Bursts, Will Cryptocurrency Have A Place In The World?

If The Bitcoin Bubble Bursts, Will Cryptocurrency Have A Place In The World?

If the Bitcoin Bubble Bursts, Will Cryptocurrency Have a Place in the World? After skyrocketing in value by almost 2,000 percent in 2017, this week bitcoin suffered its worst two-day crash since 2015 , only to bounce back to over $12,000—with speculation that it could climb over $100,000 this year. But does it matter? The latest price move shows bitcoin is still a speculative investment with an enormous amount of volatility. The fact that bitcoin isn’t actually being used much more than a year ago just goes to show it isn’t even really a cryptocurrency—it’s just a vehicle for hype. And not just bitcoin; ethereum, litecoin or whatever controversial and unimpressive initial coin offering (ICO) people are putting their money into. Even the bitcoin bulls have been calling it a bubble, and yet still buying—behavior that is eerily reminiscent of the dotcom bubble of the 90s. Like the dotcom bubble, bitcoin will, at some point, suffer a huge correction. And once the bubble bursts, bitcoin will no longer have a real place in the world. Bitcoin’s wild fluctuation is a clear embodiment of the justifiable hubris surrounding the technology behind it: the blockchain. And while bitcoin will undoubtedly be a joke at Davos this year, blockchain technology and its abilities will be a real focus of serious conversation, and for good reason. In Pictures: The 50 Most Powerful Military Forces in the World An Israeli holds a visual representation of the digital cryptocurrency bitcoin, at the 'Bitcoin Change' shop in Tel Aviv on January 17. JACK GUEZ/AFP/Getty Images Instead of focusing on bitcoin, we need to focus on third-generation protocols and the separation of tokens and coins to find true legitimacy for this technology—negating some of the issues you would otherwise se Continue reading >>

Bitcoin Crash - Ripple And Crypto Falling: Will Bitcoin Recover? Will Ripple Recover? | City & Business | Finance | Express.co.uk

Bitcoin Crash - Ripple And Crypto Falling: Will Bitcoin Recover? Will Ripple Recover? | City & Business | Finance | Express.co.uk

Bitcoin has now shed over half of its value since the $20k high recorded on January 18, dropping to lows of just under $8,000 over the weekend. Ripple fell to $0.75, as XRP crashed back towards prices not seen since before its dramatic rise in December. The three-month Ripple graph below highlights the extent of Ripples recent decline - and reveals the cryptocurrency has not been valued so low since before Christmas. While Ethereum dropped back below $1,000 to $892 at the time of press and a fall of $259 (22 percent) from yesterday's high of $1,151. Tether putting $8k BTC on its knees a new level of bad' for bitcoin Ran Neu Ner, thefounderof ONchain Capital, suggested BTC c ould reach highs of $20,000 again in 2018. He said he was confident that bitcoin would regain itssky-highprices this year, arguing that it is in the cryptocurrencys nature to be volatile. Speaking to CNBC, he said: Yeah but bitcoin goes up, bitcoin goes down, bitcoin goes up and down very quickly. If you recall a few months ago we were sitting right here and bitcoin was under $8,000. It shot up to $20,000 in less than two weeks so this is nothing new. Bitcoin climbed back above $10,000 Thursday for the first time in two weeks Right Side anchor and reporter Steve Lookner tweeted this morning: Ripple is the third-biggest cryptocurrency. It has lost 18 percent of its value in 24 hours. It has lost 74 percent of its value since early January. Ripple investors have lost, on paper, $290 million in 24 hours. The crash came after a blockchain startup suffered a costly hack attack when home sharing startup BeeToken was hit by a phishing dupe. Parity Technologies is trying to bounce back and recoup $160 million (112 million) after a novice developer accidentally froze the funds so no-one could access them. Tr Continue reading >>

Will Cryptocurrencies Crash To Zero?

Will Cryptocurrencies Crash To Zero?

LiteCoin is going down with the market dip [coindesk.com] Google a big winner today had only just been formed at the time. Whether any of todays cryptocurrencies will survive over the long run seems unlikely to me Steve Strongin, Goldman Sachs head of global investment research Some financial experts think the cryptocurrency bubble may have burst already, after the entire market plunged some $553billion between January 7 and February 7. Earlier this week, Fran Boait from campaign group Positive Money, told the BBC: If you look at the actual trajectory of bitcoin since around 2011 when it first came on the scene. The real hype and hysteria that we have seen that the rate of growth in the last year really, and then the fall again is unprecedented. You know, up to 14,000 at its peak and we are already down 5,500 after just in a month. Cryptocurrency price graph: All the major cryptos have crashed over the past month So, its looking like this is definitely a bitcoin bubble bursting and unlikely to happen on this scale again. While acknowledging that new cryptocurrencies will emerge, Mr Stongin paints an ominous picture for those invested in digital assets. He said: So, are any of todays cryptocurrencies going to be an Amazon or a Google, or will they end up like many of the now-defunct search engines? Just because we are in a speculative bubble does not mean current prices cant increase for a handful of survivors. At the same time, it probably does mean that most, if not all, will never see their recent peaks again. Continue reading >>

Cryptocurrency Crash: Whats Causing It? | Fortune

Cryptocurrency Crash: Whats Causing It? | Fortune

2018 Time Inc. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy ( Your California Privacy Rights ). Fortune may receive compensation for some links to products and services on this website. Offers may be subject to change without notice. Quotes delayed at least 15 minutes. Market data provided by Interactive Data . ETF and Mutual Fund data provided by Morningstar , Inc. Dow Jones Terms & Conditions: . S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Terms & Conditions . Powered and implemented by Interactive Data Managed Solutions . Continue reading >>

Only Three Cryptocurrencies Will Survive The Cryptocrash

Only Three Cryptocurrencies Will Survive The Cryptocrash

Only Three Cryptocurrencies Will Survive the CryptoCrash Obligatory Disclaimer: I am NOT a financial advisor, and none of this advice should be taken without speaking to a qualified professional first. Further, do NOT invest more than youre willing to lose, and do your own research first. The mainstream media is in love with the headline So-and-So Investor Says Crypto is a Bubble! You see it everywhere. I, on the other hand, have written several articles on why I believe the opposite is true . However, as a mental exercise, I like to think about which tokens would be left standing should the bubble actually bust. Im not alone in this weird exercise Daniel Jeffries has written on the subject as well , saying that something like 10% of the current crypto-companies out there stand a chance of outlasting whatever bubble burst may come. The 10% of projects that make it through the bloodbath will turn into the Amazon, Google and Facebook of tomorrow and likely even the JP Morgan and Goldman Sachs as well, not to mention maybe even the governments of the future, like digital direct democracies or liquid democracies. Before we dive into my opinion on the matter, let me make a caveat: I believe the so-called crypto-bubble is unlike anything weve ever seen, including the Dot Com Bubble and the Tulip Bubble, and when/if it bursts, it will not behave in a way legacy or crypto investors will expect. I cant predict the future, but I know that crypto is different. And Im not alone in that opinion. All that being said, my three picks to survive the Crypto Crash are Bitcoin, Decred, and Monero. Lets break these down individually. Bitcoin has been around for nine years an eternity in crypto-time. Its been through hell and back several times, including a few forks in the not-so-recent pa Continue reading >>

Bitcoin Price Falls Again After Worst Daily Crash In Months | Fortune

Bitcoin Price Falls Again After Worst Daily Crash In Months | Fortune

Read More: Frances Newly-Appointed Monsieur Bitcoin Is a Notable Cryptocurrency Skeptic At its lows on Tuesday , bitcoin had fallen 25% in the session, its biggest daily decline in four months. It was a far cry from its peak close to $20,000 in December, when the virtual currency had risen nearly 2000% over the year. Bitcoin has plummeted before. Marc Singer, an adviser at Singer Xenos in Miami, noted bitcoin fell 93% in value over a five-month period in 2011. The last time bitcoin more than halved in value was from November 2014 to January 2015. Tuesdays decline followed reports that South Koreas finance minister had said banning trading in cryptocurrencies was still an option and that the government plans a set of measures to clamp down on the irrational cryptocurrency investment craze. Separately, a senior Chinese central banker said authorities should ban centralized trading of virtual currencies as well as individuals and businesses that provide related services. Bitcoin is deciding whether this is the moment to crash and burn, said Steven Englander, head of strategy at New York-based Rafiki Capital. My conjecture is that cryptocurrency holders are trying to decide whether to abandon bitcoin because its limitations mean it will be superseded by better products or bet that it can thrive despite them. Cryptocurrencies enjoyed a bumper year in 2017 as mainstream investors entered the market and as an explosion in so-called initial coin offerings (ICOs) digital, token-based fundraising rounds drove demand. While many observers say the recent falls show that the bubble has burst, those backing the nascent markets say that regulation is welcomed and wild price swings to be expected. The volatility of bitcoin and other crypto currencies is an expected, and important, par Continue reading >>

What Could Cause The Crash Of Cryptocurrency?

What Could Cause The Crash Of Cryptocurrency?

What could cause the crash of Cryptocurrency? A study from Digiconomist found that each transaction on the Bitcoin blockchain uses 236 KWh worth of electricity, this amount is enough to power 8 U.S households for an entire day. Now to put things into perspective, there are over 300,000 transactions per day. At this rate, Bitcoin uses more electricity per year than the whole of Nigeria and this is only increasing. Proof of work is vastly uneconomic and damages the environment at an alarming rate. Energy consumption will hinder the scalability issues of Bitcoin, however the other issue that arises with POW mining is that with the increase in cost associated with mining BTC it is less economical to mine Bitcoin. This would limit the distributed nodes (miners) globally and allow a larger percentage of control to the dominant mining pools / farms. This would lead to a more centralised blockchain, where they can change the rules of BTC as they please. The supply of Bitcoin is finite, capped at 21 million. Eventually (currently predicted for 2140) Bitcoin's supply will run out. Once this happens, miners will no longer receive rewards for completing blocks but instead will be given fees. The fees will be drastically high in relative terms, and people will stop using the blockchain. Also, if miners decide that this is uneconomical for them to process the transactions and use their computing power elsewhere the speed of transactions for Bitcoin will drastically slow down, rendering one of the fundamental values of a Bitcoin (speed) useless. Bitcoin is not a superior blockchain, there are hundreds of projects that are faster, cheaper and more valuable than Bitcoin. Bitcoin has market dominance because it is one of the first and most topical cryptocurrency (did you know that the p Continue reading >>

The Coming Cryptocurrency Crash -- And Why It's A Good Thing

The Coming Cryptocurrency Crash -- And Why It's A Good Thing

The Coming Cryptocurrency Crash -- And Why It's A Good Thing {{article.article.images.featured.caption}} Opinions expressed by Forbes Contributors are their own. The author is a Forbes contributor. The opinions expressed are those of the writer. This story appears in the {{article.article.magazine.pretty_date}} issue of {{article.article.magazine.pubName}}. Subscribe People used to say that when taxi drivers started talking up stocks, a crash was coming. Today, its Uber drivers. Last week, two of my Uber drivers on two continents discovered I was a professor of innovation (they asked) and immediately shared stories of rapid riches. The objects of their desires were cryptocurrencies based on blockchain such as bitcoin and ether. More appear every day. One UBERian explained that his favorite version, billion coin, couldnt go down because of a special methodology. Im sure its a special methodology that never goes down until it does. (Rather than challenge his logic, I suggested he sell enough to recover at least 100% of his original investment.) Be clear, billion coin is no bitcoin. Bitcoin, ether and others are real. These methodologies have a powerful future in our global financial system, though no one can predict what that will be. We can, however, confidently predict there will be casualties. The good news is lots of experimentation, discovering new stores of value and value exchange (not to mention blockchain applications beyond currencies; note the work of John Clippinger ). The New York Times reported recently that entrepreneurs are creating new digital currencies to rapidly raise funds for early-stage ventures. So-called Initial Coin Offerings enable entrepreneurs (or scammers) to raise large sums of money without dealing with the hassles of regulators, investor Continue reading >>

Which Cryptocurrencies Will Survive A Crash In The Markets?

Which Cryptocurrencies Will Survive A Crash In The Markets?

Which Cryptocurrencies Will Survive A Crash In The Markets? By Rakesh Sharma | January 10, 2018 12:55 PM EST Winklevoss Twins Unveil Proposal for Self-Regulation of Crypto Markets As valuations reach new highs, the mood in cryptocurrency markets is increasingly being compared to the craze for dotcom companies at the turn of the century. When that mania subsided, companies without a business model and with multi-million dollar valuations went bankrupt. The situation in cryptocurrency markets is not dissimilar. Not much is known about the overwhelming majority of 1,385 coins available in the markets today but they are still being bid up to multi-billion dollar valuations. As an example, Dogecoin, a cryptocurrency that was intended as a parody for the bitcoin boom, has a valuation of $1.6 billion, as of this writing. The coin has no clearly-defined use case or characteristic to justify that value.(See also: Bitcoin Vs. Litecoin Vs. Dogecoin .) Nolan Bauerle, research director at CoinDesk, says 90% of cryptocurrenciestoday will not survive a crash in the markets. Those that survive will dominate the game and boost returns for early investors. And those returns are substantial, if one were to believe RBC Capitals estimate of a future $10 trillion market for cryptocurrencies. But identifying survivors in the cryptocurrency markets is easier said than done. No single currency has gained mainstream traction or is even close to achieving it. Even bitcoin, the worlds most valuable and popular cryptocurrency, is plagued with scaling issues, such as high transaction fees and slow networks. (See also: 3 Obscure Cryptocurrencies To Watch .) Jake Brukhman, founder of Coinfund, a Brooklyn-based blockchain technology advisory and investment firm, says fundamental factors are not reflec Continue reading >>

Heres Proof That This Bitcoin Crash Is Far From The Worst The Cryptocurrency Has Seen

Heres Proof That This Bitcoin Crash Is Far From The Worst The Cryptocurrency Has Seen

Heres proof that this bitcoin crash is far from the worst the cryptocurrency has seen Bitcoins crashes in the past have been much more severe than latest rout Panicking that the bitcoin bubble has finally burst? The popular cryptocurrency actually has a history of surviving crashes, and in its short life has already been through 13 major corrections or crashes. Thats according to an analysis by data visualization site HowMuch , which compiled all of bitcoins crashes, beginning in 2012, in one chart. Get more cryptocurrency updates from MarketWatch: Check prices, performance and market capitalization, in one dashboard. The price of bitcoin is trading around $8,000, remaining well below the level of $10,000 seen a week ago and its December peak near $20,000. But this chart could qualm the fears of cryptocurrency investors who wonder if this is the end for cryptocurrencies. To visualize bitcoins crash history, HowMuch created 12 boxes representing time periods where bitcoin came under extreme selling pressure. The blue line indicates the percentage of value lost during each selloff. And while this latest selloff could be tough for HODLers who are checking their accounts this week, its not the worst. Bitcoin lost 87% of its value in the 411 days from Nov. 30, 2013, through Jan. 14, 2015. It lost 83% of its value in just three days between April 10, 2013, and April 12, 2013. If you had invested just $1,000 in bitcoin at the bottom of that three-day correction at $45, it would be worth about $200,000 today (and would have been worth nearly half a million dollars back in December). Still, this chart is no guarantee this isnt the end. Joe Davis, Vanguards global chief economist, this week proclaimed in a blog post that there is a decent probability that bitcoins price goes to Continue reading >>

This Weeks Bitcoin Crash Was All About Fraud And Regulation

This Weeks Bitcoin Crash Was All About Fraud And Regulation

This weeks Bitcoin crash was all about fraud and regulation Cryptocurrencies have had a rough week: the value of bitcoin plunged to a mere 50 percent of its 2017 peak, and other currencies, such as Ethereum, Ripple, and Litecoin have seen double-digit losses compared to their heights from last year. Tuesday also witnessed the collapse of BitConnect, an anonymously operated crypto exchange that had been repeatedly accused of running a Ponzi scheme via its proprietary BCC currency. Taken together, these events may simply act as another reminder of the volatility of the cryptocurrency market, which saw bitcoin rise to a peak of $19,783 on December 17th. Bitcoin has gone through multiple crashes before: in spring 2011, in November 2013, and in January 2017. However, this current bubble comes against a new backdrop: a global tide of regulation against the inchoate cryptocurrency industry. On one hand, these regulations may be scaring bitcoin investors into selling their coins now before the full impact of regulation makes itself felt. On the other, it may also be threatening suspect exchanges such as BitConnect, with its own token declining in value by 46 percent between December 17th and January 15th the day before it announced its closure. The value of Bitcoin plunged to a mere 50 percent of its 2017 peak In the United States, regulation has reared its head in the form of the SEC. Last month, its newly formed Cyber Unit pressed charges for the first time against PlexCorps, which was accused of defrauding investors through a questionable initial coin offering, or ICO. Almost a week later, SEC chairman Jay Clayton issued a warning on cryptocurrencies to investors, hinting that the commission would begin monitoring the market more closely for any potential violations of secu Continue reading >>

Ripple, Bitcoin & Ethereum Prices Are Crashing. Here's Why | Money

Ripple, Bitcoin & Ethereum Prices Are Crashing. Here's Why | Money

For the second time in less than three weeks, cryptocurrencies suffered a major correction. The 16 largest cryptocurrencies all saw major price declines over the past 24 hours, according to data from Coinmarketcap.com. Ripple, the third-largest digital currency, saw its price fall as much as 39% at one point. Bitcoin, the granddaddy of the crypto universe, saw its price fall as much as 14% on Monday. And Ethereum, the second-largest cryptocurrency which has gained in p opularity among businesses , dropped 12%, before rebounding somewhat. The question is why? Market watchers say you can point to one of three reasons: Investors are pointing to South Korean regulators as a possible reason for the latest declines. One of the greatest strengths but lurking weaknesses of cryptocurrencies is that they are largely unregulated by governments. This allows people to use them anonymously, which is also why criminals have taken to the online monetary system. But that means any whiff of new government oversight can make investors nervous. Last month, the South Korean government said it would increase its oversight of the digital currency market by banning anonymous crypto accounts and providing measures to shut down exchanges, if needed. And on Monday, South Korean officials inspected six major local banks, reviewing the institutions anti-laundering measures in connection with cryptocurrency trades. This spooked the global markets. We need regulators to look into the space more closely, the Korean exchanges have become crazy in terms of price differences so these regulatory actions would help the price stability, Naeem Aslam, chief market analyst at TF Global Markets told Bloomberg. Because it accounts for 35% of the total crypto market, Bitcoin is by definition the most influential Continue reading >>

Cryptocurrency Price Crash Will Burst Bitcoin, Ethereum, Ripple Bubble | Metro News

Cryptocurrency Price Crash Will Burst Bitcoin, Ethereum, Ripple Bubble | Metro News

There may be trouble ahead for crypto investors (Picture: Getty/Metro.co.uk) People who invested in Bitcoin and other cryptocurrencies could soon lose all their money. Thats the warning from the European Union , which said the surging value of virtual currencies is a bubble which could burst at any time. Bitcoin, the most famous cryptocurrency, soared by more than 1,000% in 2017 but has already lost about half of its value this year as governments around the world threaten a clampdown on the unregulated market. Its dramatic price collapse has been described as a cryptopocalypse and a bloodbath . Yesterday, the European Unions banking, securities and insurance watchdog said the information given to people who buy digital dosh is in most cases incomplete, difficult to understand, does not properly disclose the risks and may therefore be misleading. Virtual currencies such as Bitcoin, are subject to extreme price volatility and have shown clear signs of a pricing bubble and consumers buying VCs should be aware that there is a high risk that they will lose a large amount, or even all, of the money invested, the warning continued. The price of Bitcoin has been on a rollercoaster ride over the past three months (Chart: Coindesk) A probe was requested by European Commission Vice-President Valdis Dombrovskis, who said last month that the bloc must prevent cryptocurrencies from becoming a token for unlawful behaviour. There will be a meeting of key authorities and the private sector very shortly to assess the longer-term situation for cryptocurrencies beyond current market swings, he said. Last week Germany and France asked the Group of 20 Economies (G20) to discuss possible regulation for cryptocurrencies at its next meeting. Markus Ferber, vice chair of the European Parliamen Continue reading >>

Bitcoin, Cryptocurrencies Crash As Stock Market Plunges | Money

Bitcoin, Cryptocurrencies Crash As Stock Market Plunges | Money

Panic appears to be setting in for cryptocurrency investors. The price of Bitcoin , which had plunged even before this weeks broader stock market crash on Monday, has fallen more than 40% in the last week. Over the past 24 hours alone, Bitcoin is down 20%. Prices dropped below $6,000 early on Tuesday, hitting a 12-week low, according to the cryptocurrency-tracking site Coindesk. A mere 24 hours earlier, each unit of Bitcoin was trading for around $7,500. One week ago, Bitcoin was above $10,000. The all-time high in the Bitcoin market was set in mid-December, when each unit of the cryptocurrency was worth nearly $20,000 . Bitcoin was down 70% from that high as of early Tuesday. In other words, if you invested $1,000 in Bitcoin at its peak, it would be worth a measly $300 right now. Heck, if you invested $1,000 in Bitcoin just yesterday, you would have already lost $200 on paper. Other cryptocurrencies have also been crashing. Ripple, Cardano, and Bitcoin Cash are all down more than 20% in the past 24 hours, according to Coindesk. And this comes after a similar dip last week, when cryptos like Ripple, Ethereum, and Litecoin all fell more than 25% in a single day. Ripple, which was viewed as the hot new digital currency at the start of 2018, has suffered enormous losses over the past month. After the cryptocurrency hit an all-time high of $3.84 on January 4, it dipped to $1.16 by the end of the month . As of early Tuesday, each unit of Ripple was worth about $0.60. Thats a decline of 83% off Ripples peak. As weve pointed out many times, financial gurus like Yale economist Robert Shiller and billionaire investor Warren Buffett have warned against Bitcoin and other cryptocurrencies. These digital currencies have no inherent value, the saythey are worth only what the market Continue reading >>

Bitcoin Crashes To Below $6,000 - But You Can Still Make Money From It

Bitcoin Crashes To Below $6,000 - But You Can Still Make Money From It

Bitcoin crashes to below $6,000 - but you can still make money from it In the past week Bitcoin has lost $4,000 - and is now worth less than a third of it's peak price in December. But given the cyber-currency is still up 500% in a year, is this just the beginning of the fall? Could not subscribe, try again laterInvalid Email Ten years ago Bitcoin didn't exist. Five years ago they cost $12 each. 12 months ago they were almost $1,000 and just six weeks ago they were worth almost $20,000 each. Since December's high Bitcoin's price has dropped by more than two thirds - losing more than $13,000 in value - in the past week alone $4,000 has been wiped from the price according to figures from Coinbase . That's a fall of 24% in a day, 40% in a week and more than 60% in the past month, according to Coinbase figures. In the past 24 hours the price even dipped to below $6,000. That means it lost more money yesterday than it took five years to add to its worth. At the time of writing the price is $6,085 - that's the lowest since Ovtober last year. But is this the beginning of the end for the cryptocurrency or just a blip on its ascent? The beginning of the end or the end of the beginning? The good news for people who believe in the future of Bitcoin is that this is a pretty classic price drop for the cryptocurrency. When traditional shares or currencies rise over time, there are points where people who've bought them to make money sell some of their holding. It's called profit taking and tends to happen at key price levels. Bitcoins have risen in price astronomically this year (Image: Reuters) Two months ago Bitcoin broke through $10,000 (7,421) and the people looking to cash in some of their growth took money out. The price fell for a bit as a result, then surged on again to$18,0 Continue reading >>

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