🤷 Opinions Alex Morris

Bitcoin Price Prediction for 2019: Will BTC Price Get Back to $20,000?

🤷 Opinions
U.Today takes its crystal ball to come up with the most accurate Bitcoin price forecast for 2019. Read Bitcoin price predictions for 2019 from top industry experts
Bitcoin Price Prediction for 2019: Will BTC Price Get Back to $20,000?
Contents

As the New Year’s ball is about to drop, Bitcoin enthusiasts will have one wish – a major bull run. In this article, we are delving into the top 2019 Bitcoin price predictions.

💼 Related Article
Circle CEO Voices His Bullish Market Predictions, Calls For More Regulatory Clarity
🔥 Hot
1 month 1 week
256
Circle CEO Voices His Bullish Market Predictions, Calls For More Regulatory Clarity

Prepare for a January slump

It doesn’t take a seasoned technical analyst or a crystal ball to determine what to expect from Bitcoin this January. Historically, every single year starts with a bloodbath for the world’s biggest cryptocurrency. The media coverage of Bitcoin peaked in early 2017 when the much-hyped digital currency suddenly dropped by -47%. However, that wasn’t even the biggest January drop that BTC has experienced over the past five years.

Year  

January drop

2014

-23.5 percent

2015

-48.5 percent

2016

-23.5 percent

2017

-36.5 percent

2018

-47 percent

Another instance of Bitcoin’s seasonality pertains to Chinese New Year (or Lunar New Year). In fact, Bitcoin has followed the same pattern for the past three years, setting new lows that were immediately followed by price upticks.  

Source: Shutterstock

Expert predictions for 2019: Bitcoin bulls

Fran Strajnar: $200,000 by Jan. 1, 2020  
How high Bitcoin will go? We are starting with an uber-bullish prediction made by the CEO of Brave New Coin who made an outlandish forecast, claiming that Bitcoin could reach $200,000 by the start of 2020. A constantly growing Bitcoin adoption will be the main driving force behind the price of the currency.

Ronnie Moas: $28,000
During the World Crypto Con, Ronnie Moas shared his forecast for the end of 2019: $28,000. He further explained that the 2018 price slump was merely a bump in the road due to the fact that many investors went on a sell-off spree. Moas also encouraged hodlsters not to lose faith in the currency.   

Mike Kayamori: a brand-new new ATH in 2019
Mike Kayamori, the CEO of major Japanese exchange Quoine, predicts that Bitcoin could repeak in 2019 given that ‘the bottom is near.’ Japan’s Financial Services Agency (FSA) is actively cooperating with the cryptocurrency industry, which gives ground for Kayamori’s bullish forecast.  
 
Sonny Singh: $20,000 by the end of 2019
Bitpay’s Sonny Singh has come up with one of the most bullish forecasts as he thinks that Bitcoin will climb to $20,000 next year, thus matching its current ATH. Bakkt launching Bitcoin futures in January is among the main reasons why this target is not far-fetched.  

💼 Related Article
Bakkt CEO Announces Bitcoin Futures Postponement
🔥 Hot
2 months
256
Bakkt CEO Announces Bitcoin Futures Postponement

Andy Cheung: $20,000
Andy Cheung is yet another industry expert who believes that Bitcoin could match its current ATH of $20,000 the following year. Cheung calls it a ‘conservative’ future value prediction of Bitcoin. Moreover, he believes that Ethereum, one of the biggest losers of 2018, will shine even brighter after the upcoming hard fork.  

Notably, Kevin Murcko, CEO of CoinMetro, has also recently shared his $20,000 prediction if Bitcoin ETFs are eventually approved by the SEC.

Mitch Blakeway: $12,000
Just like Singh, Mitch Blakeway of Quantatex sees the launch of Bitcoin futures by Bakkt and NASDAQ will be the main catalyst for Bitcoin’s growth in 2019. With that being said, the price of Bitcoin could go up to $12,000, and crypto evangelists can expect it to grow even further in 2020 when the next Bitcoin halving occurs.  

Mike Novogratz: $10,000 in Q1 2019
In September, Mike Novogratz, the huge Bitcoin proponent from Wall Street, claimed that the coin would be able to crack $10,000 in Q1 2019 because of an influx of institutional money. Once there are more custodian solutions, Bitcoin will be eventually viewed as a store of value.  

Notably, Novogratz was ridiculed because of constantly trimming his short-term predictions for 2018 but he still believes that BTC could even reach $20,000.   

💼 Related Article
Mike Novogratz, Goldman Sachs Invest in Startup That Stores Crypto
🔥 Hot
3 months
256
Mike Novogratz, Goldman Sachs Invest in Startup That Stores Crypto

Entering the bearish territory

Anthony Pompliano: $3,000 in Q3
It is quite strange to hear a disheartening price prediction from the permabull Anthony Pompliano. The head of Morgan Creek Digital Assets believes that the cryptocurrency market will remain in the doldrums until Q3 2019 with Bitcoin potentially finding the bottom below the $3,000 level. After that, the sky's the limit for Bitcoin – Pomp predicts that it could eventually breach the $50,000 mark in the nearest future.    

Bobby Lee: $2500 in Q1 2019
Bobby Lee, the brother of Fundstrat’s Tom Lee, who also happens to be the founder of China’s first exchange, BTCC, is certain that Bitcoin could bottom out as early as in Q1 2019 with its price tanking below the $2,500 level.

Arthur Hayes: bears will remain supreme in 2019
BitMEX CEO Arthur Hayes, who earlier thought that Bitcoin would be able to surpass the $50,000 mark this year, has recently done a U-turn. Now, Hayes doesn’t see Bitcoin recovering from the current predicament in 2019 with the BTC price falling below $2,000.

Peter Brandt: $1,200
Technical trading vet Peter Brandt also doesn’t see Bitcoin recovering in 2019 – his prediction stands at $1,200 if the price of Bitcoin drops below the psychologically important $3,000 mark (the flagship cryptocurrency was already on the cusp of doing this year).

At the same time, the possibility of Bitcoin skyrocketing above its current peak is also on the table, Brandt states. He emphasizes that he doesn’t want to be perceived as a Bitcoin hater.

Notably, Brandt accurately called the 80 drop in Bitcoin price back in January. If the price does drop to the level of $1,200, he is certain that even most ardent crypto enthusiasts will consider jumping ship.

💼 Related Article
Brian Armstrong Predicts That Upcoming Financial Crisis Will Lead to Mainstream Crypto Adoption
🔥 Hot
5 months 1 week
256
Brian Armstrong Predicts That Upcoming Financial Crisis Will Lead to Mainstream Crypto Adoption

Is Bitcoin going to $0? Join the Bitcoin hater party

Calvin Ayre, the founder of Bitcoin Cash, is on the same wavelength with ‘Bitcoin Jesus’ Roger Ver, claiming that BCH will make its older brother completely irrelevant. Recently, Ayre voiced his bold prediction that the Bitcoin price will plunge to $0 in 2019 due to its low scalability. At the same time, he doesn’t think that the BSV fork participated in November’s market crash.

Shutterstock

Ironically, Erik Finman, teenager millionaire who made over $4 mln during Bitcoin’s peak, is also turning his back on Bitcoin, claiming that the top currency will be eventually replaced by Bitcoin Cash (BCH). Finman says that tons of infighting ‘killed’ Bitcoin.

💼 Related Article
The Largest Exchanges Are Trading New Bitcoin Cash Coins, Hard Fork Has Taken Place
🔥 Hot
2 months
256
The Largest Exchanges Are Trading New Bitcoin Cash Coins, Hard Fork Has Taken Place

Speaking of doomsayers, one should also mention the notorious Bitcoin critic Nouriel Roubini who’s certain that Bitcoin will be worth null ‘in due time’. American stock broker Peter Shiff, who is particularly famous for predicting the housing market crash, is also certain that Bitcoin could tank to zero. Moreover, he recently shredded CNBC anchor Brian Kelly for shorting Bitcoin after his endless shilling.

What can push Bitcoin price in 2019?

  1. A spike in real-life adoption. Binance CEO Changpeng Zhao (CZ) admits that this year was a ‘tough’ year for Bitcoin but he expects more real applications of Bitcoin in 2018. However, that could change in 2019 and eventually push the BTC price much higher. The adoption of xRapid by global banks is also expected to have a knock-on effect for Bitcoin.            

  2. Institutional investors coming on board. A lot of experts are in agreement with Mike Novogratz – 2019 will be the year of institutional money. The launch of Bakkt’s Bitcoin futures is, of course, one of the most anticipated events of early 2019 given that the launch of Bitcoin futures by CME, the largest futures exchange in the world, was one of the reasons behind the unprecedented spike. The baby steps of Fidelity, Yale, and other big-name players were already a precursor to what will happen next year.

  3. The US SEC giving green light to a Bitcoin ETF. One should bear in mind that the SEC postponed its decision on the much-anticipated Bitcoin ETF. The final decision is expected not earlier than in  February 2019, clarifying its so-far ‘rocky’ relationships with Bitcoin ETFs.

  4. Regaining dominance. Many smaller altcoins are crashing, and it’s a good opportunity for Bitcoin to regain its dominance (which is currently sitting at 53.1%). Bitcoin is shedding billions but the whole crypto market is in an even worse position with 70 percent of all ICOs failing to surpass their initial valuation. Global management consulting company A.T. Kearney predicts that Bitcoin will be controlling 2/3 of the whole cryptocurrency market.     

  5. Regulatory clarity. While the US remains the main market for Bitcoin, the country’s lawmakers have yet to bring more clarity to the table, which prevents large institutions from fully diving into crypto. 2018 was the year of a heated congressional hearing and the first crypto bills. Will there be a major shift in 2019?     

Bitcoin price predictions: then and now

The definition of a bullish Bitcoin price prediction has definitely changed since the historic bull run of 2017. In 2016, a $2,200 forecast for 2018 was considered to be ‘nice and bullish’ but any experts who would dare to voice these numbers today would automatically join the bear club.

💼 Related Article
Major Figures in Crypto Fail to Deliver Realistic Forecasts on BTC Price
🔥 Hot
1 month
256
Major Figures in Crypto Fail to Deliver Realistic Forecasts on BTC Price

In all fairness, not everyone was super-rational about a Bitcoin price prediction even in the pre-ATH era. For instance, a Coindesk poll found out that 56 percent of Bitcoin enthusiasts were certain that Bitcoin would reach $10,000. Of course, Bitcoin naysayers were quick in I-told-you-so-ing but little did they know about what would happen to Bitcoin in just two years. The only difference is that this prediction was borderline crazy in 2014 while anything below the Bitcoin’s current ATH won’t even pass for bullish anymore.  

Getty Images

In 2013, the Winklevoss brothers also made a bold prediction that Bitcoin would be able to reach a whopping $40,000 but they didn’t specify the exact date. There have also been predictions that Bitcoin could even hit $1 mln. On the flip side, there have been numerous occasions when the price was predicted to plunge to zero. Actually, Bitcoin pessimists have already done that for more than 317 times but somehow the king of crypto always stays there. For instance, this infamous article was published in 2011 (!).  

Just to stay on the safe side, one can predict that the Bitcoin price could skyrocket to $1 mln or tank to $0.   

Time traveler from the future: Bitcoin will hit 100,000 in 2019

Now that we’ve covered the past predictions for Bitcoin, let’s get a bit desperate and recall the viral time traveling post on r/Bitcoin that was published in 2013. A random Reddit user claimed that he was typing his predictions straight from 2025. His price forecasts for 2015 and 2017 turned out to be more accurate than those of the CNBC experts (sorry, Tom Lee). The time traveler believes that Bitcoin will be able to breach the $100,000 milestone in 2019, making it the most bullish prediction on our list sans Fran Strajnar.

fool.com.au

Is it even worth making Bitcoin price predictions?

On Dec. 13, crypto bull Tom Lee said that he won’t make any Bitcoin-related forecasts. The Fundstrat CEO explains that the reason behind this decision is the inherent volatility of Bitcoin. Earlier, Lee predicted that the world’s largest crypto would reach $25,000 by the end of 2018. U.Today also recollects the most embarrassing Bitcoin price predictions of 2018:

Bitcoin price predictions

He later changed his prediction to $15,000 when Bitcoin entered the death spiral, but this figure is still a far cry from where Bitcoin stands today – $3,886 at press time.
  
While it may seem like Lee is throwing a temper tantrum, we cannot blame him – Bitcoin has a penchant for wild price fluctuations. Furthermore, the nascence of the crypto industry makes it very sensitive to the current news cycle (for instance, the announcement about Winklevoss' ETF rejection instantly made it to mainstream news outlets and tanked the Bitcoin price).

💼 Related Article
Is Cryptocurrency Dead? Why Are Bitcoin and Altcoins Hitting a Snag?
🔥 Hot
2 months
256
Is Cryptocurrency Dead? Why Are Bitcoin and Altcoins Hitting a Snag?

However, bad (and frankly random price predictions) extend across the whole asset class. Gold, for instance, is only valued at $1,200, while many industry experts in the likes of Peter Schiff predicted that one ounce would be worth $5,000. 2018 also had many surprises for the stock market, with most analysts predicting that the S&P 500 would end up at 3,000 by the end of this year (at press time, it is standing at 2,416).

Bitcoin will hit 100,000 in 2019

Since most of these predictions do not translate into reality, the real question is why these forecasters even bother.

🤷 Opinions
5092 views views
👓 Recommended articles
🤷 Opinions Darryn Pollock

Are Ripple and XRP Getting Ready to Replace SWIFT?

🤷 Opinions
SWIFT has long been the go-to for cross border payments, but it is in dire need of an upgrade and Ripple believes they are the ones to do it
Are Ripple and XRP Getting Ready to Replace SWIFT?
Contents

SWIFT, the Society for Worldwide Interbank Financial Telecommunication, provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized and reliable environment.

It has been in operation going on 46 years now and has become the global standard in sending money across borders. However, in its time, it has also picked up some undesirable issues, and it is also starting to show its age – now 46 years old.

It is for this reason that the disruptive power of blockchain technology is being touted as the future of cross border payments, but more specifically, Ripple and its XRP token are looking to be the new standard in this regard.

Ripple, in regards to cryptocurrencies, is probably most similar to SWIFT in that they do have a centralised control hub for their XRP token, but they also have a lot of the added benefits of being decentralised and on the blockchain.

SWIFT has become a political tool in the past, especially in relation to sanctions, and it is also totally reliant on the organisation for the continued running of the network. This is where Ripple can offer a lot more for payments across the globe.

Still running

The combination of having a controlling organisation, such as Ripple for the XRP token, while maintaining the decentralised benefits of a blockchain means that Ripple has a few edges over SWIFT that make it far more attractive for today’s financial world.

Ripple sales director Ross D’Arcy explained during a fintech conference in Croatia:

“I think SWIFT is a really interesting example. Because SWIFT, if you think about it, kind of crosses the lines sometimes and plays a bit of a political role. We don’t see our customers’ transactions. Our customers’ transactions go over the internet. So Ripple could shut down as a business tomorrow and our customers could still transact using our software. The same wouldn’t be the case with SWIFT.”

Non-political

Adding onto the statement from D’Arcy, XRP is a decentralised token that operates on a blockchain and because of this, it is not easy to manipulate or utilise as a tool. SWIFT has been controlled by the US government at times, making them exclude certain countries from the network in order to enact their sanctions.

However, with the XRP token, this will be extremely difficult as, even if Ripple Labs was to be coerced into doing the bidding of a government, they only have seven percent control of the validation of transactions.

A decentralised control that is appealing

Ripple’s benefits over SWIFT are quite clear as the outdated system suffers from a lot of legacy issues. But even the XRP benefits make it more attractive as a successor for SWIFT.

Ripple has been looking to appease and welcome regulators and governments, and by extension banks, by playing by the financial rules. This element of control makes XRP more appealing for companies and countries to adopt.

However, in an ever decentralising world, XRP’s blockchain offering means that there can be no monopolisation or manipulation when it comes to cross border payments.

🤷 Opinions
708 views views
👓 Recommended articles
🤷 Opinions Darryn Pollock

Despite the Criticism, Ripple Arguably More Decentralised Than Bitcoin

🤷 Opinions
Many won’t even class XRP as crypto because of Ripple’s control, but they could also argue that the XRP token is more decentralised than BTC
Despite the Criticism, Ripple Arguably More Decentralised Than Bitcoin
Contents

Ripple, and its token, XRP, have faced a constant barrage of criticism relating to their decentralization of the token over the years. Many cryptocurrency purists have criticised their inner workings with Ripple, the company, clearly in charge of the XRP token and its distribution.

However, this allegation has been as equally denied by the those at the head of Ripple; in fact, it has even seen the CEO, Brad Garlinghouse, state that the XRP ledger is in fact more decentralized than both Bitcoin and Ethereum.

This statement alone will get many raring for a fight, but a closer inspection and interpretation of what it means to be decentralised could indicate that Ripple has a point. They could indeed argue that they are more decentralized than the other two major cryptocurrencies, based on the mining pools.

It is well known that controlling the majority of the mining of traditional proof-of-work coins, like Bitcoin and Ethereum, can lead to a 51% attack, which destroys the decentralisation of the blockchain and hands full control to one person, or group, or pool.

Bitcoin has been flirting with the 51% attack recently, and previously, but for Ripple, it is a different story, as they only have seven percent control of the validators. Looking at the interpretation of decentralisation, there technically have been more chances for Bitcoin to be controlled by one group than there has Ripple – so is it less decentralised?

Making claims

To be honest, the idea of decentralisation is really up for debate, and it is also dependant on interpretation, thus the claims being made on their side of these fence are debatable, but it is interesting to hear the thoughts of Garlinghouse.

“It is very clear that the XRP ledger is decentralized,” said the CEO of Ripple. “Ripple runs seven validators, which is about four percent of all public validators.”

He added:

“By almost any measures now, the XRP Ledger is more decentralized than the Bitcoin ledger or Ethereum ledger, where you have a very small number of miners controlling you know well past 50% of mining power.”

It is true that Bitcoin’s mining has almost been monopolised in the past by the likes of Antpool, BTC.com, and ViaBTC, with Bitmain at times having the power to launch a 51 percent attack, but never acting on this. However, it shows just how much the mining has been centralised in Bitcoin.

Ripple’s argument

If one was to base the mining and validation of cryptocurrencies as the key determining factor of their centralisation, then it would be preposterous to say that Bitcoin is decentralized.

Ripple, the company, despite having control in different areas of the XRP token, only controls seven percent of its validation. Thus, on this basis, they have very little control and it should be argued that XRP is decentralised.

cryptocurrency

 

A lot of this argument is also predicated on the algorithms that these two coins use, however.

Bitcoin and Ethereum use proof-of-work algorithms. This system rewards miners for validating transactions by paying a fee for their work. This was a great starting point for a decentralized system that incentivizes complete strangers to contribute to the greater good of a network and make forward progress.

But as time has gone on, clear limitations have manifested. Blockchains that use proof-of-work can be subject to centralized control, where a few miners have significant control over the system.

The XRP Ledger uses a consensus protocol that relies on a majority of validators to record and verify transactions without incentivizing any one party. Validators are different from miners because they aren’t paid when they order and validate transactions.

Today, these validators operate at locations across the globe and are run by a broad range of individuals, institutions, asset exchanges and more.

More to it

As mentioned, this form of argument in regards to decentralisation only takes into consideration one aspect. But in this aspect, indeed, Ripple is superior. However, when it comes to purists and believers in how blockchains should operate, many have an issue with a company having discretion over tokens.

Ripple has been a coin that differs substantially from most of the top 20 coins by market cap – that does not necessarily mean it is wrong, nor right, but it is certainly showing that things can be done in different ways in the blockchain space.

🤷 Opinions
261 views views
👓 Recommended articles
🤷 Opinions Darryn Pollock

Ripple Believes XRP Should Be Viewed Just Like Bitcoin

🤷 Opinions
Most cryptocurrencies are in a legal classification grey area, especially in the US, but Ripple believes XRP should be viewed like Bitcoin.
Ripple Believes XRP Should Be Viewed Just Like Bitcoin
Contents

Regulatory uncertainty surrounding cryptocurrencies has become one of the biggest bugbears of cryptocurrency businesses and users alike. There are very few hard and fast rules or legal frameworks around the digital assets, leaving anyone who operates them in a grey area.

It has led to many lawmakers and regulators to start to try and delve into how these cryptocurrencies can fit into the current legal framework, and in the case of the United States, it has seen the SEC declare Bitcoin at least as not a security.

However, the SEC has more jurisdiction over other cryptocurrencies, declaring a huge swath of ICOs as securities, but leaving the rest of the more established coins, such as Ripple, for example, in the dark.

This has led Ripple to implore the SEC to make a decision on XRP and treat it just as they would Bitcoin. It is a decision that surely needs to be made, but will be more difficult for the SEC in comparison to Bitcoin, as the XRP token differs significantly from the major cryptocurrency.

However, the argument from Ripple is that the XRP token is more suited to not being classified as a security due to its regulatory adherence and US-base.

A policy of uncertainty

The relationship between the cryptocurrency ecosystem and regulators has been a complex and dynamic one. The original face of Bitcoin was one of defiance of the governmental rules and regulation, covering itself in a ‘cypherpunk’ cloak and being used predominantly on the dark web.

However, as it has entered the mainstream, and regulators have found it legitimate enough to put levels of control over it, the cryptocurrency community has understood that in order for digital assets to advance and become accepted, they need to adhere to the rules.

This has now led to many seeking legal classification and clarification, including Ripple.

“The challenge for adoption comes back to policy. The policy uncertainty around some of the assets has limited adoption, particularly here in the US,” said Ryan Zagone, director of regulatory relations.

“And I’m speaking from Ripple and XRP, because we use that asset because it’s a half a cent per payment. It’s basically free. It scales. And it’s efficient, with 1,500 transactions per second and nearly no energy burn. So we’re at a point today where there are real solutions to all of these challenges that already exist.”

According to Zagone, US regulators should treat XRP the way same way they view Bitcoin and Ethereum.

“Today, the policy certainty in the US exists for Bitcoin and Ethereum, despite the fact that those are China-controlled platforms. So activity goes to those platforms. What we need to do from a policy perspective in the US is look at places where there are uncertainty.”

“And one place I’m speaking directly for me here is XRP, where it looks like Bitcoin. It’s decentralized. It’s open-source. We have a small 7% of the validation power on that. Rather small on there. Giving clarity to those ones that are very similar to Bitcoin and Ethereum that have the same characteristics and should be classified the same way. And then we’re creating a level playing field across all the cryptos.”

Difficulty in classification

It is not an easy task for the SEC, and other regulatory bodies across the globe, to determine which cryptocurrencies are securities, or other such entities, and which are not. However, the the process thus far has been slow and bureaucratic.

This is not only hindering the growth and potential of cryptocurrencies, but also making it unattractive for the companies and businesses to adopt and utilize the powerful technologies. For Ripple, this includes major banks which have seen the potential but are unsure of the regulatory standpoint. 

🤷 Opinions
120 views views
👓 Recommended articles
🤷 Opinions Darryn Pollock

Big Bitcoin Mining Pools Losing Control as “Unknown” Miners Take Profit

🤷 Opinions
Bitcoin mining is slowly moving away from the big mining pools, like Bitmain, and ‘unknown’ miners are starting to come in to grab profits
Big Bitcoin Mining Pools Losing Control as “Unknown” Miners Take Profit
Contents

Part of the appeal of Bitcoin and other cryptocurrencies is that their design allows for a decentralised network based on a large network of miners. But in recent times, major mining pools have taken control of the mining arena, limiting the decentralised nature of the cryptocurrency, and making mining unfavourable and unprofitable for the everyday miner.

But there is a change in the air as the major pools, like Bitmain and others, are starting to lose their grip with a surge of “unknown miners” now helping decentralise the cryptocurrency further in what could be a return to profitability for individual miners.

Research has shown that the likes Antpool, BTC.com, and ViaBTC are now validating far less Bitcoin blocks than this time last year. Rather, there is an emerging group of “unknown” or untied miners that are currently validating more blocks than any individual pool.

This group of “unknown miners” could well be individuals flexing their own muscle as they look to profit from the fall in difficulty that has been seen over the past few months in the Bitcoin mining algorithm.

Who is in charge?

Blockchain research unit Diar has published new data that shows the control once held by major mining pools is waning, and is likely being overtaken by the more casual miner. Anonymous, and unknown miners, not tied to any pools, are now finding profit in mining the major cryptocurrency.

Who is in charge?

“Unknown miners closed December having solved a whopping 22 percent of the total blocks, up from 6 [percent] at the start of last year,” reported Diar. “The Bitcoin network is currently less likely to experience an attack given the fact the BTC.com controlled pools have lost dominance over the network.”

Protecting against attack

Not only is it that the casual miner could be profiting from Bitcoin mining again, it is helping accentuate the decentralisation of Bitcoin by diluting the power held by a single mining pool.

It is well known that if a blockchain is controlled by more than 51 percent by one miner or mining pool, that blockchain becomes the target of a 51% attack, which can have devastating outcomes for the cryptocurrency.

Bitcoin has been under threat of a 51 percent attack in the past because of the mining monopoly of Bitmain, but it has never come to fruition, and now, it cannot currently.

Diar reports that in early 2018, Bitmain’s mining pools accounted for 53 percent of Bitcoin’s hash power. Theoretically, this would have allowed them to collude to take control of Bitcoin with a 51 percent attack.

This reduction in their influence is positive for those wary of such an attack. Recently, Ethereum Classic suffered such an attack that led to $1.1 million being stolen from cryptocurrency exchanges.

🤷 Opinions
85 views views
👓 Recommended articles
🤷 Opinions Darryn Pollock

Ripple Focusing on Where the Money Is – the MENA Region

🤷 Opinions
Ripple has seen significant uptake in the MENA region of the Middle East and North Africa, so it is taking its focus there
Ripple Focusing on Where the Money Is – the MENA Region
Contents

The Middle East, despite the strife and conflict, has grown to be a place of vast wealth with the likes of Dubai and Abu Dhabi shining bright in that region as places of immense wealth. This region, along with North Africa, known as the MENA region, is thus a very important place, especially for Ripple.

Ripple has stated that it is focusing a lot of its attention on the MENA region, and it is a two-part approach as it is aware of the potential there, but it has also seen significant interest from the region already.

Not only is the MENA region one of the fastest adopters of Ripple’s product, but they are also friendly to digital assets in terms of a regulatory standpoint. Since October, Ripple has been trying to expand there in a move which is quite smart.

The banking-focused cryptocurrency XRP and its parent company Ripple have been seeking partnerships in the MENA region, and it is starting to show, as they are starting to see traction.

The place to be

Ripple’s Head of Infrastructure Innovation Dilip Rao has spoken on the importance of the MENA region, recently mentioning that it is adopting the distributed ledger technology solutions from Ripple at a rapid rate.

They have been signing up banks in Saudi Arabia and UAE and other countries like Oman and Kuwait.

Rao said:

“The enthusiasm of the regulator, the central banks to also encourage the use of Ripple technology to build new infrastructure for payment rails.”

It makes sense that Ripple has decided to focus its efforts into the Middle East, especially with the interest it has there, and also because of the potential in its expanding and impressive banking system.

Banks showing their interest

For Ripple, it is mostly about partnering with banks so they utilize the blockchain assets of their XRP token in order to make the intra-banking payments easier, cheaper and more efficient.

So far, they have seen strong interest from the banks in the MENA region, and are thus driving deeper in. The banking system in the MENA region, especially in the developing middle eastern countries are far less attached to their legacy banking systems, something that has been a handbrake for the general adoption of blockchain and cryptocurrencies.

Banks in the MENA region are thus far happier to use the XRP token and xRapid product to solve visibility and liquidity problems in global remittances.

There are also far more lenient and open minded regulators in the Middle East which are willing to look into the new and forward-thinking options that are out there. It is because of this that Ripple has decided to pursue this region, and should it be a success, it would be the perfect platform to launch a more global offensive in terms of adoption.

Regulation inclined

Ripple has always been a cryptocurrency which has taken a different path from most others. Its intention is to work with traditional financial structures and help upgrade them rather than replace them, and to this end, it relies heavily on a welcoming regulatory standpoint.

In the MENA region, Ripple has found an open minded general approach to these financial tech rules, and to that end it has seen adoption start taking hold. It remains to be seen if Ripple can totally colonize the MENA region with its solutions, but it is positive that it is focusing in on an area which has an open pathway.

🤷 Opinions
234 views views
👓 Recommended articles