Good morning! Good afternoon! And Good evening! These salutations are to cater for all the different time zones around the globe. The current Crypto-markets are not the levels we’d like them to be, but it is always good to remember to say hello to someone somewhere. That said, the markets show a weak Bitcoin (BTC) at $6,871; a similarly shaky Ethereum (ETH) at $417; Ripple (XRP) is trading at $0.49; and Litecoin (LTC) at $114.
But are these prices really bad? I think not! This levels are pretty high if compared to a similar time last year when the above four were valued as follows: BTC – $1,192 , ETH – $43.64, XRP – $0.034 and LTC $8.92. To note is that one year ago, Bitcoin Cash (BCH) had not been forked from the BTC blockchain. But now it is trading at $652. Impressive!
So what is going on? And what lays ahead?
One theory postulates that the Bearish market is largely over. This is after Timothy Enneking, current M.D of Crypto Asset Management LP, stated that the ‘winter’ in crypto is largely over. He said the current decline was caused by Asset consolidation, regulatory concerns, massive liquidation by the Mt. Gox trustee and startups’ selling crypto assets to pay salaries and expenses.
Also to add, is the unclear direction being given by the American SEC. He also stated that the current decline might mean that the quality of individual cryptocurrencies is beginning to have a greater influence on their market prices. As a result, the market should rebound soon.
A second theory by Bank of America states that the highly predicted Bitcoin Bubble is already popping. This is after a team of Bank of America Merrill Lynch (BAML) researchers, compared bitcoin with famous financial manias of: the Mississippi Company and South Sea Company in the 18th century, gold, the U.S. stock market in 1929 and the Dutch tulip bubble in 1637.
But whatever theories end up being true, Bitcoin is still a valued asset around the globe. So much so that policemen in India have been accused of kidnapping and extorting BTC from their victims. Eleven people in total were accused of being part of a Bitcoin Extortion Ring, with 10 of them being cops. Imagine that? This must mean BTC is very VALUABLE!
Another study has revealed that there is currently around 3.5 Million Cryptocurrency traders in Japan with the most popular Cryptos being the top five of Bitcoin, Ethereum, Bitcoin Cash, Ripple and Litecoin. These traders make up approximately 3% of the Japanese population of 127 Million according to 2016 data.
Theories aside and observing the last two cases of Bitcoin motivating kidnappings and 3.5 Million Japanese to trade in them, it is clear that Cryptocurrencies are Hear to Stay and are headed To The Moon!