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[BTC/USD] Price Analysis: $10,000 for Bitcoin in 2019 — Is It possible? Of Course!
[BTC/USD] Price Analysis: $10,000 for Bitcoin in 2019 — Is It possible? Of Course!

Hike in Blockchain Investment Signals Long-term Growth for Bitcoin, Cryptocurrencies: Report

  • Urvashi Verma
    ⭐ Features

    Public companies’ increased stakes in mining rigs and cryptocurrency payment platforms, signal long-term growth for cryptocurrency markets

Hike in Blockchain Investment Signals Long-term Growth for Bitcoin, Cryptocurrencies: Report
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The first quarter of 2018 marked a surge in Blockchain tech investments as companies increased stakes in mining rigs and cryptocurrency payment platforms, the move may signal that cryptocurrency markets are here for the long-run.

Worldwide spending on Blockchain solutions is forecasted to double and reach nearly $2.1 billion in 2018 compared with last year,  according to a recent report by IDC global market intelligence firm. By 2021 investment is expected to reach $9.7 billion, the report says.

"2018 will be a crucial stage for enterprises as they make a huge leap from proof-of-concept projects to full blockchain deployments,” said Stacy Soohoo research manager, Customer Insights & Analysis at IDC in a press release.

Several public companies that have placed bets in blockchain technology solutions in the first quarter of 2018 include Victory Square Technologies Inc (CSE: VST) , Marathon Patent Group, Inc. (NASDAQ: MARA), NXT-ID Inc (NASDAQ: NXTD), Integrated Ventures, Inc. (OTC: INTV) and Net Element, Inc. (NASDAQ: NETE).

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Public Companies Boost Investments in Mining Rigs, Payment Processing Sectors

Victory Square Technologies, Inc. (CSE: VST)

Canadian-based block-chain investor Victory Square Technologies Inc. (CSE: VST) announced last week that it will acquire 100 percent of the interest in  Limitless Blockchain Technology, LLC for nearly $4 mln. The acquisition brings three anchor products to consumer markets including Limitless Hash, a data centre in Nevada, which runs more than one thousand miners of Bitcoin, Ethereum and LiteCoin; Limitless VPN,  a user-based desktop miner for household use with more than 11,000 users and Limitless Audio a streaming application in late-stage development that provides artists the capability to mine cryptocurrencies in exchange for using streaming.

Marathon Patent Group, Inc. (NASDAQ: MARA)

Marathon announced last month that it has started bitcoin mining at new facility in Quebec, Canada. The company purchased 1,400 Bitmain Antminer S9 miners ("Antminer S9s") and leased 26,700 square feet of data center space in Quebec which is expected to utilize approximately 2.0 MW and deliver approximately 19 Ph/s of ASIC mining capacity.

Integrated Ventures, Inc. (OTCQB: INTV)

Integrated Ventures, Inc. (OTCQB: INTV) reported the purchase of 20 Antminer X3 mining rigs last month.  Antminer X3 along with all recently purchased mining rigs: (1) Antminer L3, (2) Antminer S9, (3) Panda Miner B3 Pro will be installed at its soon to be opened, third mining facility, capable of hosting up to 1,250 units.  The latest purchase combined with current (less units sold) inventory, totaling 350 units, is projected to deliver annual revenues of $2.2 million per year, based on bitcoin pricing at the time of the release the company said last month.   

Net Element Inc. (NASDAQ: NETE)

Net Element, Inc. (NASDAQ: NETE) operates a payments-as-a-service transactional platform for small to medium enterprise companies plans to grow transactional revenue combining blockchain technology solutions and Aptito, its cloud based, restaurant and retail point-of-sale solution. The company launched a multi-channel payments platform, Netevia which connects payments across sales channels through a single integration point in February and says it will use decentralized Blockchain technology solutions to connect merchants and consumers to increase the efficiency of transactions within the ecosystem.

NXT-ID Inc. (NASDAQ: NXTD)

NXT-ID, a comprehensive platform provider the Internet of Things (IoT) technology products and services announced that it is accepting pre-orders for Flip™, a new contactless payment device that will enable cryptocurrency holders to use the value of their currency to make purchases at retail locations in February. The  device uses value exchanged from cryptocurrency to make traditional payment transactions. Flip will accept value exchanged from Bitcoin and expand to other cryptocurrencies in the future the company said in its press release.

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Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?

  • Yuri Molchan
    ⭐ Features

    Stablecoins show hardly any volatility compared to Bitcoin and altcoins, many are hoping that they will be able to bridge new crypto economy and regular fiat money

Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?
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Bitcoin, the father cryptocurrency, emerged in hope that it will remove all intermediaries in electronic commerce that cut off their share of payments. BTC was perceived as a P2P way to replace fiat cash in an electronic format, which would enable one party to pay another without any financial institution or payment platform which would demand its share of a transaction as a reward for its services.

What is wrong with Bitcoin

For quite a while Bitcoin was performing the way the crypto community expected. But the situation changed later – BTC rate became weaker, thus bringing down its financial and economic reliability, when it gets to be used as a regular means of payment.

You cannot have a currency that would cost like a British castle today, a gram of gold – tomorrow and a pack of French fries the day after.

At that point practical fintech minds came up with an idea of creating something which would become a breakthrough in the universe of crypto – a so-called stablecoin.

Will stablecoins solve the volatility problem?

Technically, stablecoins are protected from the volatility roller-coaster that Bitcoin and other cryptos love to ride. They are programmed to keep their prices stable and investors now are largely attracted to this new type of digital assets.

Stablecoin does not show any volatility in its monetary value, since it has a fixed connection to an asset it is pegged to. The major goal of using stablecoins is taking the best from decentralized crypto coins and combining it with a constant value. Thanks to it, stablecoins can be used as a reliable means of trade.

Asset-pegged stablecoins

Asset-backed ones get their value from an asset as can be understood from the name. An asset provides the necessary value to a coin, as well as the necessary legitimacy.

A great example of an asset-pegged stablecoin is Tether (USDT). In spite of a series of scandals at the end of last year, it remains the most popular stablecoin in the crypto market.

Recently, it has partnered with the Tron Foundation to launch a Tron-based stablecoin.

Other examples are TrueUSD (TUSD), USD Coin (USDC), the Gemini Dollar (GUSD), and the Paxos Standard (PAX). They are all pegged to the USD.

Crypto-backed stablecoins

Some digital coins work in a similar way to fiat-backed ones, however, they are pegged to collateral crypto. That means that crypto assets that ensure the value of such stablecoins are stored in a wallet similar to escrow.

A good example of a crypto-pegged token is Maker, which is ranked 16 on CMC.

Algorithmic stablecoins

Even though, stablecoin can be interesting at first thought but the way they are built goes against the principle of decentralization that crypto coins have as a foundation. Thus, many crypto fans and evangelists are positive that stablecoins must be linked towards not a centralized asset but a computer algorithm which takes value from a balance between supply and demand.

Basis is now considered the most promising algorithmic stablecoin of all.

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Can stablecoin ensure smooth future for the crypto industry?

The primary goal of all crypto assets was and remains to come up with virtual asset that would be liquid enough and not vulnerable to market volatility. From this point of view, stablecoins are a dream of all crypto fans and evangelists of a decentralized economy.

Apart from the potential to conduct crypto transactions smoothly, experts believe it can bridge the two worlds – fiat and crypto, bringing them a mutually beneficial coexistence. However, that may take time.

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