*** Please note the analysis below is not investment advice. The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of U.Today. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Bitcoin shows massive bullish momentum
Last week, Bitcoin made a pretty ugly downwards breakout and it cracks almost all important supports around $6,250–$6,500. The support level at $6,250 worked nicely and stopped the price movement. Over the weekend, it started slowly rising upwards and it allows us to draw the continuation pattern “Rising Wedge”. But as usual, patterns have opportunities to make a breakout to either direction and currently, BTC is making a super-strong breakout upwards.
After the massive push, the price breaks the first strong crossing area which consists of the major counter trendline since Sept. 9 and the strong resistance area at $6,460. Altcoins are supporting this move upwards and are also high on the plus side.
It looks like we have found a very strong volume and a very strong buying power from the bulls. Those levels which have worked historically as a very strong support and resistances were just a ‘piece of cake’. The second and the major crossing area consists of the major down-trendline, pulled from March 5, the curve support and the smaller trendline since Sept. 22.
If the price manages to close above the second crossing area, then we will definitely see a bullish week from Bitcoin and despite that — a bullish week for the whole market.
A close above the mentioned area confirms several bullish price action criteria:
We have a breakout from the round number area at $6,500 which is a guideline as a trend indication.
We have a breakout from the short-term counter trendline since Sept. 22. It has worked nicely as a resistance and if we get a close above the mentioned level it would be a bullish sign.
We have a break above the curve support which currently worked as a resistance.
We have a close above the major down-trendline: it shows that the market has a breakout from the downtrend and it needs to be confirmed with new higher high at around $7,400.
As we've written, currently the price has made a breakout from the key resistance level at $6,767, which will definitely show us bullish power and it has reached into the other round number areas which are $7,000 and $7,500.
This move shows that the bulls are finally on the market and they make big moves. Currently, we could consolidate (sideways movement) between the $6,767 and $7,000; however, it is hard to say where they want to bring the price but this is definitely a strong statement to be bullish this week.
Ripple is one of the top gainers
Today, Ripple peaked just a little bit over 25 percent in the profit. The bounce came: from the round number area at $0.4, from the golden Fibonacci level at 62 percent, from the short-term counter trendline retest area and obviously, the strong BTC movement supports this massive move upwards.
Currently, it trades above the 200 EMA and it has founded a resistance from the previous support level, the March low level at $0.47 which now works as a resistance. Ripple is consolidating at this price level but the move upwards (led by BTC) was a serious statement for the whole market and for the upcoming week.
If the price manages to push through from the mentioned resistance level, the next one is the round number $0.5. To get LIVE updates please visit our TradingView page, there you can get constant updates.
Ethereum (ETH/USD) is ready to make new higher highs
After the strong push the whole markets got, Ethereum has found a resistance from the short-term counter trendline, from the 200 EMA crossing area and from the first strong area at $225.
The price has stopped at these levels and is waiting for another pump upwards to push through mentioned levels to confirm another bullish leg upwards. The bounce came from the round number at $200 and our well-known ‘longer & smoother’ trendline since April 1.
If we get a close above the second strong resistance (the blue line) at $236, then we have a fully confirmed breakout and we have made a short-term new higher high and probably the next resistance would be around $275.
The whole market is currently high volatile, but those must be your first guidelines to confirm your higher levels viewpoints.
By Thursday 21st the market continues its lateral movement, while neither bears nor bulls fully control the prices. The main concern is that trading volumes remain low proving that the situation may change at any time. Today’s balance of forces somehow reminds us those of May 12th when players also froze in indecision unless one long green $1,000 candle broke Bitcoin’s bearish pattern and unambiguously pointed on further direction.
In the meantime in anticipation of a whale’s turn even significant news are unable to shake the market. Crypto prices almost haven’t reacted to the hack of Bithumb, the sixth biggest exchange. Our readers can compare this occasion with Coinrail’s hack (90th exchange by trading volumes) on June 11th, which allegedly caused sharp market’s fall.
As for the positive news, we can’t but draw readers attention to the latest Tether transparency update. Directors of the scandalous Stablecoin affirm that the company’s balance sheets have successfully undergone audit procedures and that all USDT tokens are fully backed by fiat currency on their banking accounts. The question is whether this news will be enough to finally inspire buyers for action?
Bitcoin is moving towards a critical point
The flat movement will not last forever and we believe that the next couple of days will finally reveal Bitcoin's (and the whole market's) further destiny. On the daily chart, one can notice an intersection of the long-term descending channel (marked in red) and young ascending trend (thin green line). The situation becomes even spicier if we look at close proximity of the long-term ascending trend (orange line) and 0.786 Fibonacci retracement. Trading volumes which were steadily declining since the end of March have finally stabilized which means that all stars came together and either bears or bulls (we bet on bulls) should soon make their move. Their target is clearly visible and after breaking through descending channel at $6,800 and them through long-term ascending trend line which now acts as resistance at $7,000 we may see a rally to $8,000.
Further decline is less likely as the bears should be out of fuel after long run. A forming bearish wedge, however, may give them some strength and if they manage to win the battle for $6,000 a door to $5,500 will be easily open.
We recommend our readers to watch closely how the price will break through the triangle and do not hurry to make a trading decision right now.
ETH/USD looks promising provided that Bitcoin will not fail
In comparison with other top altcoins Ethereum -0.33 percent looks good for the several reasons. First, and the most important – during long May’s and June’s downtrend the coin didn’t updated March’s minimum (when even Bitcoin -0.49 percent was very close to it). Second, after first shy evidence of possible market reversal, ETH recovered faster than most of the cryptos. Breaking through descending channel in past 24 hours is another positive sign, although not very encouraging – the upward movement was not continued for now.
With all eyes on Bitcoin -0.49% percent , we may establish further bulls’ targets which are $570 coinciding with the nearest support-resitance level and psychological $600 defined by 0.382 meaning of Fibonacci grid.
In case of decline, the main task for bulls is not to let ETH break through the bottom line of the young ascending channel although the range of $500-$520 should stop the bears anyway, at least for some time.
EOS/USD is ready for a breakthrough
EOS has been on fire recently: the long-awaited mainnet launch was followed by accusations of high-degree centralization and blocking of several accounts in an attempt to stop coin thefts. However despite some fundamental problems, from the view of technical analysis the main Ethereum -0.33 percent competitor is doing very well.
Although EOS is still moving in descending channel, its width doesn’t prevent traders to derive profits with acceptable level of risk. The price fluctuations have formed a triangle, which will be resolved tomorrow at the latest. The upper boundary of the triangle is formed by powerful hidden mirror level (marked in orange), breaking through which will confirm bulls’ strength. In this case, the nearest mid-term target lies at $12.5 directly on the intersection of the boundary of the descending channel and 0.618 Fibonacci retracement. We expect a rebound from this level and after some rest the bulls may try to achieve $14.5.
As for the negative scenario, for now $9.5 should act as a reliable support which should restrain bulls’ pressure.
Ethereum Classic in on rampage
From the list of top 50 altcoins, Ethereum -0.33 percent Classic is showing the most rapid recovery, surging 15 percent in 24 hours. The reason still lies behind announcement of listing on Coinbase which caused a sharp spike in trading volumes unseen since February. Considering that coin’s all-time-high was set at $47, there is enough space for a considerable increase of current price.
Immediate further growth can however be stopped by reaching an important resistance level formed by the upper boundary of the descending channel and strong 0.382 Fibonacci retracement. A couple of days which Bitcoin -0.49 percent traders may take to decide on further direction should be enough for ETC to gain a foothold before the bulls may attempt to reach next target defined at $20.5 in short-term.
No doubt Ethereum -0.33 percent Classic will follow the market, but most probably at a higher speed. The bulls are in a winning position, and in case of a negative scenario, it would be an uphill task for the bears to drag the price below $15.5 where a resistance was formed.
In the times of uncertainty in the fintech sector, U.Today sat down with Eugene Loza, known by many colleagues and followers as EXCAVO, to have a thorough chat. Being one of the most sought-after experts in the field of crypto trading, we wanted to get the man’s perspective on today’s situation and attempt to excavate some of the deeper buried layers of the crypto truth.
On Becoming a Trader
U.Today: You are the top trader on TradingView and a big expert in the field. Can you please give us your backstory? How did you find yourself trading cryptocurrencies?
EXCAVO: It all started when I got to attend one of Bill Hubbard’s lectures, which made me very interested. After that, I started working at a brokerage firm where I was able to formulate more questions, and my desire to learn how the whole industry works multiplied. I left the company two years later and―having promised myself to spend at least half my life learning the market inside out―entered the Kiev Institute of International Relations.
By then, I already knew quite a bit and started to publish graphs on gold and oil trade, as well as on some American and European indices. At one point, when I was working as a portfolio manager for one Canadian client, he paid my commision using Bitcoin. This is how I first got acquainted with the world of cryptocurrencies and subsequently started to delve into it, which led to where I am right now: running my own analytics company and crypto academy.
U.Today: What should one keep in mind in order to stay sane and not lose one’s earnings in the process? Basically, what are the do’s and the don’ts of cryptocurrency trading?
You have to be disciplined and self-organized. Sticking to your own trading plan no matter what is an absolute must. The worst thing one can do is start jumping on a bandwagon following market trends. You need to always stay cool-headed and think twice before acting.
U.Today: What is your advice for anyone wishing to enter the market in the capacity of a crypto trader?
EXCAVO:The most important thing is how you treat the whole process: you must be serious and diligent. And, of course, experience is vital. You need to spend at least 10 000 hours learning the trade before starting to approach an expert like level.
There is such a thing as the “pickle effect”, as it is known where I come from. Everyone is born a fresh cucumber, so to speak, but if a cucumber is put into a jar with pickles and left marinating there, sooner or later, that cucumber will, too, become a pickle. Like the others in the jar. The question is how good of a pickle you are going to be. Find a decent fund or a trading company, roll up your sleeves, and soak in as much juice as you can.
Interpretations of Price and Market Cap Values
U.Today: We have recently covered a research study published by computer scientists from University College London who concluded that Reddit markers could be used to predict cryptocurrency rates. As someone whose very job is to predict crypto movements, can you share your thoughts on this?
EXCAVO: First of all, the market is comprised of people with different emotions and goals, and certainly each one with their own strategy. The crucial thing here is not to let the ground slide from under your feet in the times of hype.
In terms of Reddit, it can definitely be used to predict crypto rates. To my mind, the obvious reason is that shared information is prone to influencing one’s decision making. When large chunks of data are thrown at those involved in the crypto trade, it is bound to affect what is happening in the market.
Consequently, not only can Reddit be used to predict prices, but it can be used to actually change prices. And this is indeed what some individuals do in order that their agendas be pushed forward.
Normally, calendars are used to structure such targeted news―in case of Reddit, the so called sub-reddits―which come out at certain times to meet certain outcomes, including changes in rates, quite similar to, say, how my graphs may influence the others on TradingView.
U.Today: A seemingly trivial question, yet the one many do ask. Why is there often such a big divide between market cap and price values of cryptocurrencies? Some coins occupy virtually the same positions market cap- and unit price- wise, e.g. Bitcoin, Ethereum, Dash, etc. But this isn’t the case with all altcoins. For instance, Maker is currently second only to Bitcoin in terms if its unit value, but it’s not even in the top twenty by market cap. In contrast, some companies like Ripple or IOTA are among global leaders by market cap, yet the coins are valued at around 50 US cents a pop. Why so?
EXCAVO: Well, first of all, we need to understand that most of these statistics are very subjective. Arguably one of the most popular sources is CoinMarketCap, and it is a very one-sided source.
Huge sums of money that flow outside the “official” market, for example Bitcoin to local fiat exchanges on LocalBitcoins, which are often humongous amounts, are not even taken into consideration by CoinMarketCap, since these transactions are not performed by professional traders. So, official stats may not be a good indicator of how things really are.
In terms of why there is such a big divide, well, we are dealing with different parameters. Market cap figures essentially show how much has been invested into a particular currency, how much trust is in it. Price, on the other hand, reflects a) how many coins of a particular brand there are on the market, and b) how it relates to that coin’s market cap representation.
In other words, Bitcoin and Ethereum have high market cap values and high prices because much has been invested into them, and there are not too many of these coins around, comparatively speaking. With Maker, there are also not many coins around, but simultaneously not that much has been invested, hence the high price but the low market cap. With Ripple, it’s the other way around: a lot has been put into the coin by investors, hence its very high market cap figure, but at the same time there are very many coins around (100 billion in total), so the price is not high, nor was it ever planned to be.
Adoption and Latest Developments
U.Today: Are cryptocurrencies going to be widely traded for anything other than fiat currencies any time soon, e.g. gold, oil, bonds, etc? Also, when will mainstream adoption be seen outside the trading circles, as far as readily available crypto payment systems go in public places like hotels, restaurants, shopping centres, etc?
EXCAVO: In terms of trading, yes, it is possible, of course. But the real question is whether the people who are trading gold and oil need it right now. First of all, it’s not even gold, let’s not forget, it’s gold futures, i.e. future prices of gold, that’s how much confidence and capital these folks have. And they are not likely to move away from what they are comfortable with and leap into something unfamiliar and volatile unless they see that there is more opportunity for them in cryptocurrencies. When they see it for a fact, they will surely move in for the kill.
As for oil, it’s a different story altogether. These business sharks―namely Goldman Sachs, JP Morgan, and City Bank―also trade futures, and they are all working under the Federal Reserve system. And, of course, oil trade is based on the USD and USD alone, by its very definition, thanks to Henry Kissinger. So this is a political issue.
The US government simply won't allow any other, non-USD type, exchanges unless these exchanges begin to serve the government’s own interests. So, yes, crypto traders are ready to incorporate other commodities, be it metals or oil, into their exchanges, but it’s mainly the other side that has to reciprocate at this point. Sooner or later, it will probably happen, but not just yet.
As for adoption of crypto payments all across the board, this will absolutely happen, and it is happening already as we speak, as more places are offering crypto payment options in Europe and Asia. Similar to how we all use credit cards and mobile banking, crypto wallets are being incorporated into our lives as well. It is as easy and convenient as traditional banking, but it’s also much safer. In the centralized banking sector, you are likely one day to be told that you cannot withdraw your funds, for one reason or another, as it happened in Greece during their last big financial crisis when you could not take out more that 300 USD of your own money in one go.
With decentralized banking and crypto options, no one can ever tell you how much you can or cannot withdraw, or indeed what you do with your money and how you do it. This is crypto’s main advantage by far.
U.Today: Can you single out any strong newcomers to the market, be it cryptocurrencies or platforms? Anyone or anything to watch out for?
EXCAVO: I am reluctant to name any particular players, as I am not here to advertise, but I can tell you that security tokens will go a long away. With most altcoins, there is no auditing and hence no dependability, while most big players, understandably, do not want to roll the dice and invest into a black hole.
With a security token, there is much more stability, and it is much more stringently regulated. It is essentially a more secure version of your regular altcoin. As a result, the business is a lot more transparent, and your chances of being swindled are minimized greatly. One platform that specializes in security tokens that I can single out is Polymath, but that’s as far as I am willing to go with dropping names and brands.
To this I can add that information waves are always at play. Right now not too many people know about these security tokens, but as soon as enough people learn about their existence, there will be a rush, surely.
U.Today: You have recently attended the Blockchain Life Forum in St Petersburg, Russia. Were there any memorable moments for you during the event, any highlights?
EXCAVO: Generally speaking, I was very pleased to attend the forum and speak there. I must note that the standard was very high, both the official part and the unofficial after party. There were many decent speakers and experts. One panel I was on voiced an array of different opinions and methods, all with a very high level of professionalism.
Networking was ever present at the forum, which was great, of course. I, for one, even ran into one of my subscribers from TradingView―a fellow Brazilian trader from a Swiss fund―entirely by accident. This just shows how international both the forum and the crypto community at large have grown.
Insights into the Ongoing Bitcoin Crisis
U.Today: What are your predictions as we’re starting to slowly approach the New Year? We are currently going through a crypto crisis with Bitcoin’s price way down. What’s going to happen next?
EXCAVO: I was actually expecting the crisis, to tell you the truth, so to me this didn’t come as a shock. The technical analysis I do and other market pointers were good indicators that this was coming. The cycle was nearing its end.
Make no mistake, this crisis was man-made, like any other one. Certain individuals and companies with vested interests wanted the price of Bitcoin to plummet. When the price is down, you buy cheap and later sell for more when the price climbs back up, which it will at some point. For a big player all that matters is the long term, three to five years, sometimes even ten. As Rockefeller once said: “The way to make money is to buy when blood is running in the streets”.
As for other cryptocurrencies, before the end of this year other, somewhat smaller players will emerge victorious, and mini bubbles will probably pop up. Those that have proven themselves on the market already, especially the ones with their own blockchains, are more likely to succeed, followed by the previously mentioned security tokens a little ways down the road.
Ripple will grow, surely. So will Japanese NEM. Ethereum is currently down but for reasons very different from Bitcoin’s collapse: they are restructuring and cutting out the unneeded players on its massive platform. Once it’s done, the company will recover briskly.
Bitcoin Cash is in a state of utter mess: this second fork has made the company lose all its claim to the “real Bitcoin” ambition it had previously laid out. It’s still unclear what’s going to happen next, as it is not a financial issue anymore. One thing is clear to me though: Roger Ver must be kicking himself right now.
The Future of Blockchain and DLT
U.Today: What is the future of Blockchain in general? Whereas initially Blockchain was realized in terms of finance mostly, first Bitcoin and then other altcoins, now the tendency has partially shifted toward decentralized social networking sites? What do you think the future will bring?
EXCAVO: Blockchain and DLT will appear in many parts of our lives, from politics to medicine. Imagine, I have to go to a hospital in another country, for argument’s sake. There, they have no idea who I am, what my medical history is, my state of health as a child, etc. All that information is somewhere on the other side of the world, and in another language, with no access to it, let alone instant access. With the Blockchain technology today, this problem is no more. My medical history, universally available, can be accessed and made use of as easily as ordering a cab on your phone.
Of course, the other side of it is privacy, which we will see less and less of. Ironically enough, Blockchain’s decentralized nature from the technical standpoint is more centralized than anything else from the social standpoint, as everything about you is floating there in public space. But that’s the price we have to pay for progress, and it’s pretty much inevitable.
You get an iPhone, let’s say. It’s flashy and new, and you can unlock your screen with a finger tip. Great. But folks at Apple now have your fingerprint along with all your other personal information. We surrender our privacy for the sake of convenience. There are no two ways about it. So, where we ultimately end up is up to whoever is at the steering wheel, be it policy makers or company directors.
On the plus side, once again, it is making and will continue to make our lives easier. Companies like Mars, which are Blockchain’s patent bureaus, are gaining in strength, so the whole game is becoming better organized, more comprehensible to a non-geek, clearer and fairer.
In terms of decentralized social networks, yes, they may be on the rise. Any business works via crests (highs) and troughs (lows). If there is a trough with centralized networks, it can lead to a crest with decentralized ones. Binance, for instance, has come a long way, because at the time it had no real competitors as such. Everyone else was in a downward spiral, so people came to Binance to find a feasible alternative. Likewise, if users find themselves dissatisfied with, say, Facebook, and there is another, decentralized option on the table, they will surely give it a try, and if the new platform lives up to their expectations, they will stick to it, naturally.
All in all, financially, socially, and politically, we are at a crossroads, and more signs point to the fact that, one way or the other, we are going to take the Blockchain/DLT route, or at the very least we aren’t going to drive in the opposite direction, nor head for an early exit.
The market of cryptocurrency has exploded in 2017 when all major cryptocurrencies gained 1,000 percent and more in price. The world is continuing going digital, and thousands of altcoins pop up here and there. One of the top 15 global currencies is Tron (TRX), and it is slowly gaining authority in the crypto community. What makes this cryptocurrency special, and what is Tron cryptocurrency prediction for the following years? If you’ve been in the dark about this currency, it’s time to get essential information.
What is Tron (TRX)?
Tron is the creation of 26-years-old Justin Sun, a Chinese student who previously worked for Ripple (RPX). This currency was designed to change the way major websites and platforms publish and use the content. Besides, it facilitates sharing of content in the Net eliminating the need of major content providers, such as YouTube or Facebook. Therefore, Tron would be useful for artists, musicians, creatives, and people alike.
To get a better understanding of Tron advantages, read these fast facts:
It is trusted by a lot of crypto community investors
it’s based on Ethereum and soon will become an independent Blockchain.
Tron is based on a different Blockchain than Bitcoin. Let’s highlight their key differences:
Uses proof-of-work consensus mechanism
Uses proof-of-stake consensus mechanism
Processes seven transactions per seconds
Processes 1,500 transactions per seconds
Block production time– 10 minutes
Block production time– 15 seconds
Time of confirmation– six blocks
Time of confirmation– one block
Uses Elliptic Curve Algorithm for wallets
Uses Lamport Algorithm for wallets
Wallet trading platform - PC
Wallet trading platform - mobile
Tron in numbers
In 2017, TRX Tron price prediction wasn’t simply justified– no one suspected the coin to perform so well. The results were very progressive. So, what do we have now?
In January 2018, Tron was worth $0.049, and the market cap was estimated at $3,221,003,949. It was also valued at $0.25 with an unimaginable market cap of $16,752,047,709. This is a huge growth that can be compared with rising of Bitcoin and Ripple. Today (July 2nd, 2018), one TRX is worth $0.037, which isn’t as much as the community has expected, but some changes are coming– we’ll mention it later.
Let’s find out what is Tron price prediction for the following years.
Tron price prediction 2018
The first Tron prediction 2018 was not justified. This is what the predictions looked like:
Let’s remember– the current price of TRX is $0.037, although it was supposed to have risen to $0.23-$0.4 already. According to investingpr.com, it will rise to $1 within only five years – that seems to be a realistic Tron price prediction. Note that the circulating amount of TRX coins is already 65,748,192,475, and it will only increase– that’s the factor that keeps Tron from growing. But while more and more developers start implementing the platform, it becomes more appreciated.
According to Tron coin price prediction 2018 from WalletInvestor, the currency is going to reach $0.1 within a year. Let’s face the truth: 2018 isn’t the most favorable year for this coin, and the fact that it has emerged from Ethereum is what makes it controversial. However, 2018 is a good period for making long-term investments. If you’re ready to wait for a few years– this is your chance. While Tron 2018 prediction isn’t as bright as we expect, this blockchain is only at the beginning of its way to success.
Theoretically, in 2019, the current Tron prediction can become true: as it gets more investors from major payment platforms and provider such as PayPal, it can gain in value considerably. The ending of 2019 may be great, as well, with TRX reaching around $1.5 per coin.
Tron price prediction 2020
Generally, Tron coin prediction 2020 is optimistic. Due to its technological supremacy, it can hit the Litecoin and take its place. It may also be conditioned by the fact that it may get more investors from big companies. Many investors are already interested in TRX right now seeing that it’s more cost-efficient than its competitors. Therefore, the most adequate Tron prediction 2020 would be some $2 and more, though some resources give more positive forecasts.
Long-term Tron TRX price prediction
What will happen within the next seven years? No one can answer this question for sure. According to the most realistic forecasts, TRX can climb to some $0.4 - $1.7, though Facebook claims it can grow to $31. It’s not likely that Tron can surpass Bitcoin– all in all, it’s based on a different Blockchain and serves for different purposes. Therefore, TRX is appealing only to some certain circle of investors.
What Tron coin prediction depends on?
As we’ve already mentioned, Tron coin price prediction is defined by several factors, including:
Overall token supply. It’s already 65 bln, and this number is expected to grow (by 2050, all 100 bln coins will be issued). Such a huge number of coins devalues them.
Implementation of Tron. Tron TRX prediction directly depends on the level of its implementation. As soon as large companies start implementing this cryptocurrency, it will become way more valuable. At the moment, it’s widely present on the cryptocurrency market but is not widely used by startups involved in creative content publishing.
Tron becoming an independent platform. Right now, Ethereum casts a huge shade on Tron authority. As soon as creators reach the new level of development and make TRX independent, we can witness its popularization.
According to realistic price prediction, Tron won’t hit the benchmark of $1 soon– it needs time for evolvement and development. This is a nice investment opportunity for those who are ready to wait. So if you have nothing to lose now, and you have enough patience, it’s time to buy a few thousand TRX right now.
Bitcoin had an amazing price action in November of 2017, as its price went from $5,300 in early November of 2017 to almost $12,000 by end of November 2017, and one month later during December 2017, the price reached its all-time high around $20,000.
This November is different, though, as its price has plummeted to the recent level of $3,800 from around $18,000 in January 2018, having lost about 78% of its value. So, from sunset to sunrise, in this article we will analyze the main factors that caused this huge decline on a yield-to-date basis.
Bitcoin’s Monthly and Weekly Charts
Top Factors Influencing Bitcoin’s Price and Value
There is not an easy way to calculate the intrinsic value.
Taxation and regulatory challenges.
Artificial, very large demand for energy, environmental issues.
Economic effects and slow transactions.
Long-term security concerns of its hashing algorithm and huge transaction fees.
Security concerns against theft.
Not an easy way for financial transactions to people who are technologically-savvy
Requires knowledge about computer security
It is slow and not very practical in daily retail transactions
Lack of protection against fraudsters, scalability problems
What are the business prospects of Bitcoin now?
This collapse of Bitcoin’s price within one year reflects the change in the perception of investors, traders, and business acumen about the true prospects of the cryptocurrency. Its main competitive advantage includes being the first decentralized online digital currency and no need for a central bank. An alternative to traditional fiat currencies has failed to persuade the global investing and financial community so far, and this is solely based on its price reflecting the supply and demand levels.
The main concept that Bitcoin would be a revolution or an evolution in the global financial system has yet to materialize, and it is now very uncertain whether this scenario will ever occur.
Lack of regulation creates a very risky business and financial environment
The lack of regulation and very volatile trading price action makes Bitcoin not a suitable form of investment for many types of investors or investment funds. “Due to the lack of regulatory oversight, scams and market manipulation are commonplace.”
Legislators have a lot of work to do to avoid any fraudulent situations in the future, and due diligence in an extensive form is a requirement in the cryptocurrency market for a sophisticated investor.
What is the key problem for Bitcoin?
All the mentioned factors are very important for the future of Bitcoin. But the transition from its sunset to its most recent sunrise is due to one major factor, related to business and economic reasons: Its lack of broad acceptance and ease of use in daily business and retail transactions.
The elementary economic law that explains at first the price of any financial asset is the law of supply and demand. As of January 2018, and up to now, history has shown that there is excessive supply and no demand for Bitcoin. Technical analysis reflects this fundamental principle. For Bitcoin to move to significant price levels, this imbalance between supply and demand must change. Otherwise, any rallies will be vulnerable to speculative trends and profit taking.
The Ethereum community, for now, appears to be overwhelmingly rejecting a proposal to allow the recovery of hacked funds. Ethereum Improvement Proposal (EIP) 867 proposes a mechanism to do “state changes” on the Ethereum network, which is essentially a method of altering past transaction history. EIP 867 is being championed by an ICO, Musiconomi, which lost over 16,000 Ether in the Parity wallet hack last year.
What’s an EIP?
An Ethereum Improvement Proposal is an idea to improve some aspect of the Ethereum network or software. EIP-1 outlines the process for acceptance of an EIP. First, somebody must come up with an idea for an improvement to Ethereum, present the idea to the community and find a champion. The champion will create a formal EIP which complies with the formatting guidelines set out in EIP-1. The proposed EIP will be submitted using a pull request on GitHub.
Once the community has had a chance to comment on the proposal, the EIP Editor can either accept, reject or defer the proposed EIP. If accepted, the implementation code must be written and once that’s done, if it still seems like a good idea, the code will be merged into Ethereum.
Not the right way?
Ethereum’s senior developers have been reluctant to get behind the idea of EIP 867 without significantly more input from the community. One of them, Vlad Zamfir, said:
These proposals, especially proposals that do set important precedents, that impact the relation of the community and the platform, I think need to be subject to a public debate that I'm not actually sure the EIP process is designed to handle.
Ethereum’s community manager Hudson Jameson believes the EIP should be debated on social media to give time for a consensus to emerge. Another developer is calling for a video debate between advocates of the proposal and its detractors.
Last week, one of the six developers with the rights to merge code into Ethereum, resigned in opposition to EIP 867. Yoichi Hirai, who has contributed more than 5,000 code changes to Ethereum in the last year, resigned following his rejection of EIP 867. Hirai rejected the EIP as being “at odds with the Ethereum philosophy.”
Upon further consideration, Hirai came to the conclusion that EIP 867 would violate a Japanese law called “Unauthorized Creation of Electromagnetic Records.” Hirai wrote on GitHub:
Reading legislation and performing something is already beyond my capacities. I didn't realize that the EIP editorship requires this ability. Now I suspect it does, and that's not what I can offer. Some EIP editors look nonchalant about legal consequences of this draft, but I have warned them, and I have no capacities to do anything more than warn them...I resign from the post of an EIP editor.
Following Hirai’s resignation, the tide in Ethereum’s community seems to have turned against EIP 867. Users have submitted dozens of comments in the last 24 hours, most of which vehemently decry the rollback proposal as being antithetical to Ethereum’s philosophy.