Bitcoin vs Ethereum vs Litecoin

Three of the most famous cryptocurrencies that most people have heard of are Bitcoin, Ethereum, and Litecoin. Not only have they survived longer than many others, but they have all maintained their strong positions in the rankings of most valuable cryptocurrencies. Each one has its own unique attributes that they hope will help them compete in an extremely volatile market.

Bitcoin

Bitcoin is the most famous cryptocurrency out there and also the original. Created by Satoshi Nakamoto in 2008, Bitcoin is an uncensorable form of money that can be sent peer to peer anywhere in the world, without the need for a third party.

These unique attributes have garnered interest from libertarians, crypto-anarchists, and people unsatisfied with the current status quo of the economic system. It has also received derision from classical economists who point to the volatile price fluctuations as a clear example of a bubble in progress.

Despite being labelled “dead” on numerous occasions, Bitcoin has continued to survive and ultimately thrive. Not only is the price higher than most ever imagined, but there are now whole industries and conferences built around this one invention that was released on a mailing list all those years ago.

As a piece of software, Bitcoin continues to develop and evolve. New ideas such as the Lightning Network and Schnorr Signatures hope to help continue pushing Bitcoin further mainstream, with the ultimate goal being to overthrow the current fiat system. Such lofty goals have caught the attention of US congressmen who have called for cryptocurrencies to be made illegal due to fear of the US losing its hegemony through the use of the US dollar as the world’s reserve currency.

Criticism of Bitcoin is usually aimed at the Proof-of-Work hashing algorithm and the size of the network. Proof-of-Work is energy intensive, and many people have accused Bitcoin of being a waste of precious resources in a time when global warming is on the forefront of many people’s minds.

Ethereum

Ethereum is the creation of Vitalik Buterin and doesn’t directly compete with Bitcoin in terms of its money properties. Instead, the smart contract-based platform has been labelled as a potential “world computer”. Despite this, for many people, cryptocurrencies are merely investment vehicles, meaning the underlying technology often gets overlooked for the price.

Ethereum has seen significant growth in price the same way as Bitcoin has. It has also created plenty of hype and excitement. Due to the nature of Ethereum, it is possible to build tokens on top of the platform. Many cryptocurrencies on the market today are ERC-20 tokens that use Ethereum as a base layer.

Whilst Ethereum has struggled to…

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Despite Crypto Rally Pause, This Billionaire Still Expects Bitcoin at $250,000

Bitcoin (BTC) may have dropped by 4% in the past 24 hours, receding to $7,600 in an interday drop, but many analysts and investors are still optimistic. The thing is, the fact that BTC collapsed to $6,100 and then skyrocketed to tap $8,000 for a second time was deemed by many to be wildly positive, as it asserts that the bulls have control of the cryptocurrency wheel.

One prominent investor claims that this is just the start though. He recently asserted that Bitcoin’s runway is a lot longer than some expect and that BTC can easily reach a value in the sextuple-digit range.

Bitcoin Rally Is Just Getting Started

Tim Draper, a prominent venture capitalist known for sporting an “offensive” purple Bitcoin tie, recently told The Street that now’s still an optimal time to purchase Bitcoin. In a comment characteristic of his long-term expectations for this space, the investor quipped that it may be wise to “buy the dip [or] buy the rebound”, hinting at his belief that whether your BTC cost basis is $5,000 or $10,000 in years from now won’t matter.

He goes on to state that by 2022, “maybe 2023”, he expects for each BTC to be valued at $250,000, explaining his prediction as an estimate of the market share that Bitcoin will obtain as a viable currency and digital store of value.

This is far from the first time he touted such a lofty prediction. Speaking to CoinTelegraph, the staunch permabull remarked that 2018’s sell-off to $3,150 from $20,000 was simply a “fluctuation”, musing that the move was catalyzed by manipulators looking to turn a quick buck. Explaining why buying cryptocurrency whenever is logical, Draper opines…

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Bitcoin Price Falls

Crypto analyst expects a healthy pullback for bitcoin

By CCN: Josh Rager, a cryptocurrency trader and technical analyst, expects a healthy pullback for bitcoin based on the historical performance of the asset in the past three years.

Since 2016, the bitcoin price has tended to correct by 30 to 40 percent following a strong short-term rally.

The bitcoin price is up nearly $3,000 in 30 days

The bitcoin price is up nearly $3,000 in 30 days (source: coinmarketcap.com)

Although the historical performance of the bitcoin price is no guarantee of its future trend, coming off of a staggering 100 percent year-to-date gain, despite the strong momentum of the asset, some analysts have suggested the possibility of a large correction.

IS A 30 PERCENT DROP FOR BITCOIN POSSIBLE?

Like any other asset, bitcoin can become vulnerable to a minor correction if it surges by a large margin in a short time frame in a parabolic rally.

Apart from one occasion in the past week during which bitcoin experienced an abrupt drop to $6,400, the dominant cryptocurrency has more or less recovered without a large downside movement or a correction in the past month.

Since April 22, the bitcoin price has increased from $5,300 to $8,000, by nearly $2,700 within 30 days.

As such, several traders are anticipating a minor correction to occur given that the bitcoin price has surged without a dip in momentum.

Rager said…

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Why Litecoin Might Skyrocket Once Again

Litecoin is among major cryptocurrencies that are attracting attention at the moment. This comes at a time the asset’s prospects appear bright after encountering a turbulent 2018.

By the time of writing this article, Litecoin was trading at $89.01 with a market capitalization of $5.5 Billion, However, based on a number of factors within the Litecoin community, we might see the value skyrocket once again.

At the moment, Litecoin has been oversold and holders are considering selling it. Normally, when a cryptocurrency becomes oversold, its value has high chances of rebounding at any time.

With LTC, the oversold phase will be short term. The market will therefore break and the forces of the bears will be overshadowed by the forces of the bulls. It is key to highlight that the value of Litecoin will start rising gradually to new heights.

In August 2019, Litecoin will undergo its second halving. With its max supply of 84 million that will exist, The Litecoin network conducts the halving after every 840,000 blocks, a process that is expected to positively impact the asset’s value.

Note that with any cryptocurrency, as the number of blocks is mined, mining becomes difficult leading to more resources. However, mining rewards decrease. As a way of managing the decrease in mining rewards, the value of the crypto increases.

Litecoin is also expected to…

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Bitcoin Broken

JPMorgan Warns Investors Of ‘Overpriced’ Bitcoin And Potential Crash

True to form, JPMorgan strategists have been warning investors off Bitcoin, despite the current bull-market. According to a recent investor note, Bitcoin has surged ahead of its ‘intrinsic value’, mirroring 2017’s boom, before 2018’s slump.


Naturally JPMorgan Wants To Rain On Bitcoin’s Parade

Bitcoin price 00 has undergone a heroic charge since the beginning of April, signalling the end of the nearly 18-month crypto-winter. However, the BTC-phobic strategists of JPMorgan, will always find some reason to dissuade any interested customers from buying.

For JPMorgan, cryptocurrency price gains mean only one thing – the overpricing of assets. In order to give the FUD an air of science, they are even able to put a figure on it – the ‘intrinsic price.’ Which, according to JPMorgan, derives from treating Bitcoin as a commodity and calculating its ‘cost of production.’

According to the strategists:

Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.

Of course, JPMorgan omits that Bitcoin does not behave like a commodity as its supply is not only hard-capped, but its output is predictable and constant regardless of market demand.

Between The Slump And The Rally, Surely There Was A Buy Signal?

Not anything that JPMorgan could acknowledge. Although logically, yes, there must have been some point that bitcoin was a buy. It seems the experts at JPMorgan missed that.

In fact, they were singing the exact same tune back in February, when BTC was hovering at around the $4000. Back then, JPMorgan’s ‘intrinsic value’ was just $2400, based on the ‘average cash cost of a low-cost Chinese miner’.

bitcoin jpmorgan

However, all that is really being charted here is a rough sketch of miner’s profit margins.

Still, before that the folks at JPMorgan were adamant that Bitcoin had no ‘intrinsic value’ at all, other than perhaps in a dystopian future scenario.

“Great to see JPM finally admitting that Bitcoin has intrinsic value,” commented EToro senior market analyst, Mati Greenspan. “Now wait till they understand that miners who run a surplus tend to begin hoarding.”

JPMorgan Disclaimer: We Don’t Really ‘Know’ Anything

Many in the mining community have argued that the very concept of a ‘marginal cost’ or ‘break-even point’ is flawed. With a finite supply, miners can only receive a bigger share of that relative to other miners.

JPMorgan alludes to the ‘challenge’ of defining a ‘fair value’ for BTC in a caveat to its strategist’s note.

Defining an intrinsic or fair value for any cryptocurrency is clearly challenging. Indeed, views range from some researchers arguing that it has no fundamental value, to others estimating fair values well in excess of current prices.

So… ‘Based on our, admittedly somewhat arbitrary, valuation, don’t buy bitcoin’. Is this what passes for professional financial advice these days?

Do you agree with JPMorgan’s assessment of bitcoin’s current value? Share your thoughts below!


Images via Shutterstock, JPMorgan/Bitfinfocharts.com

The post JPMorgan Warns Investors Of ‘Overpriced’ Bitcoin And Potential Crash appeared first on Bitcoinist.com.

Source: Bitcoininst

The price of Bitcoin plummeted today, what happened?

Following a crazy rally, it finally happened: Bitcoin plunged $1800 in a large red candle, driving down the price to a low of $6180 on Bitstamp.

As written here before, we had a strong clue on what was going to happen:

“Add to that a recent significant drop in the short positions caused a daily 38% decrease, as the short positions are now at their lowest point over the past year. The number currently stands around 17K BTC open short positions. As a reminder, a situation where shorts are at their lower levels and longs at their high create the perfect settings for a long-squeeze.”

Does this mean Bitcoin is bearish again? It’s early to say so. So far, the anticipated correction is very aggressive but looks healthy and aggressive as this was on the way up. Besides, we mentioned here the importance of the $5700 – $6000, which was what held the market during the bear year of 2018. As long as this area hadn’t broken down, I would say that the correction is violent, but healthy.

And last, Tone Vays was right!

Total Market Cap: $255 Billion

Bitcoin Market Cap: $142.5 Billion

BTC Dominance: 55.9%

Looking at the 1-day & 4-hour charts

– Support/Resistance:
Following the break-down of the mid-term descending trend line on the 4-hour chart, it didn’t take long, and the dump came across. As can be seen, the wick of the 4-hour candle had reached the longer-term ascending trend-line support, along with Fib level 78.6%.

As of now, Bitcoin is testing support at $7250 – $7300 (along with Fibonacci retracement level 38.2%). From below, the next significant support area lies at $7000. Further below is $6700 (along with Fib level 61.8%), $6400 and $6300.

From above, the next significant resistance is the current price area, while further support turned resistance level lies at $7600, $8000, $8200, and 2019 high at $8400.

– Trading Volume: The recent dump was followed by a massive amount of funds. It’s ok to have an ugly correction like this, but the next days will tell if the sellers had returned.

– Daily chart’s RSI: The RSI had also dropped sharply. As of now, it’s still in the bullish territory (63); however, there is always more room to go down.

– BitFinex open short positions: since yesterday, we hadn’t seen the opening of new short positions as the number increased just a little to 16.7K BTC open short positions. From the other side, and supporting the long-squeeze theory we mentioned, the open longs had sharply decreased by 10%.

BTC/USD BitStamp 4-Hour Chart

btc_may17_4h-min

BTC/USD BitStamp 1-Day Chart

btc_may17_d-min

The post Bitcoin Plunged $1800 Following a Violent Correction. Are The Bulls Still Around? BTC Price Analysis appeared first on CryptoPotato.

Source: Crypto Potato

Bitcoin

A Legendary Investment Guru Just Flipped On Bitcoin

Bitcoin, which has been rapidly climbing in price over the last couple of months, has reignited the public debate surrounding the future of cryptocurrencies, their value as investments and their use in an increasingly digital world.

The bitcoin price, now double where it began 2019, has been hovering just above $8,000 since gaining $2,000 per bitcoin in just a few short days at the end of last week, and many are hailing a new bitcoin and cryptocurrency bull run—with eyes on the $20,000 per bitcoin reached in late 2017.

Now, Mark Mobius, the cofounder of Mobius Capital Partners and a legendary, veteran investor who once branded bitcoin a “real fraud”, has said bitcoin will be “alive and well” in the future.

“There’s definitely a desire among people around the world to be able to transfer money easily and confidentially,” Mobius, who’s 82, told a Bloomberg newswire podcast. “I believe bitcoin and other currencies of that type are going to be alive and well.”

Despite changing his tune on the potential of bitcoin and crypto, Mobius said he has held off investing in bitcoin or other cryptocurrencies himself.

“Whether I would invest in it is not a question,” Mobius said. “You have incredible volatility and, at the end of the day, you can’t chase one individual group or one organization that will keep track of what is going on.”

“You have to be very careful,” he added, pointing to the collapse of one-time preeminent bitcoin exchange Mt. Gox in early 2014 which lost early bitcoin investors millions.

bitcoin, bitcoin price, mark mobius, chart

The bitcoin price has surged in recent months, though remains far from its all-time highs set in late 2017.

COINDESK

The change in Mobius’ bitcoin and cryptocurrency opinion was first noted by brokerage eToro’s senior market analyst Mati Greenspan.

“Many of those who are heavily entrenched in the old financial system are unsurprisingly unswayed by the benefits of crypto, but that’s changing rapidly,” Greenspan wrote about Mobius’ flip in a note to clients. “The volatility is one of the most attractive qualities of crypto from an asset managers perspective. The idea of asymmetric risk allows us to use this unique and uncorrelated asset class to greatly increase our return on risk in any otherwise well-diversified portfolio.

“Just as I, in my portfolio, am holding about…

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Ethereum

Bitcoin Price Rally Stalls As Ether, XRP Shine

With bitcoin (BTC) price rally showing signs of exhaustion above $8,000, investors have begun diverting money into relatively cheap alternative cryptocurrencies (altcoins).

The world’s leading cryptocurrency by market value jumped to a 10-month high of $8,335 in the early European trading hours on Tuesday. The rally, however, stalled with BTC witnessing a minor pullback to lows near $7,600 in the U.S. trading hours.

As of writing, BTC has returned to levels just below $8,000, representing little change on the day.

While bitcoin is showing signs of bullish exhaustion, the altcoin market is a sea of green with prominent coins like ether – the second largest cryptocurrency by market value – rising to $235 on Bitstamp, its highest level since Oct. 1, 2018.

At time of writing, ether is trading at $232 – up 12 percent on the day – having witnessed a golden crossover, a bullish cross of the 50-day and 200-day moving averages (MAs) last month.

Even ether’s strong performance, however, is being overshadowed by XRP, which is the best performing top cryptocurrency of the last 24 hours.

The price of a single XRP jumped to $0.45 earlier today, the highest level since Dec. 24, confirming a double bottom breakout (a bearish-to-bullish trend change) on the three-day chart. As a result, the third largest cryptocurrency could rise further toward $0.50 in the near-term.

  • XRP has appreciated by 14.7 percent in 24 hours, with prices hitting 4.5-month highs near $0.45 across major cryptocurrency exchanges.
  • Stellar (LM), cardano (ADA) are also up by nearly 12 percent each.
  • Bitcoin cash is flashing red, having hit a six-month high of $410 on Tuesday.

While major altcoins have found some love, the flow of money is also heading towards lesser-known cryptocurrencies, as seen in the chart below…

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Bitcoin Price Hits A 2019 High, Is A Bull Market Guaranteed?

Bitcoin price broke its yearly high May 14 as the 2019 bull run continues to shock traders and analysts, even far beyond the cryptocurrency industry.


Bitcoin Price Caps 100% 2019 Growth

Data from even the more conservative Bitcoin price trackers, such as exchange Bitstamp, confirmed continuation of Bitcoin’s awe-inspiring breakout Tuesday, BTC/USD soaring over $83000 at press time.

The figure marks the highest Bitcoin price since May 2018, sealing in the bear market which at one point took markets as low as $3100.  

The trend reversal, which began April 1, has meanwhile turned out to be anything but an April fool’s joke.

In the past week alone, BTC price 00 has delivered 40 percent gains. 24-hour performance currently sits at 17 percent, and is expanding.

For anyone who bought bitcoin even two weeks into its bullish trend in mid April, meanwhile, BTC has created gains of more than 60 percent.

Woo: We’ve 99% Left The Bears Behind

Unsurprisingly, the figures who at that time were already confident the bear market had ended for good were celebrating this week.

Pointing to fresh technical evidence, Willy Woo, who in April said he was 95 percent sure Bitcoin had already bottomed out near $3000, said the bull market was now a “99 percent” certainty.

“In BTC’s (ten-year)  trade history, crossing above the 200 day moving average… for any sizeable time (say (eight weeks)+) has signaled (sic) bull season. Even a super conservative trend line support puts us above the 200DMA,” he wrote on Twitter commenting on an accompanying chart.

Others highlighted different achievements. Bitcoin saw its largest daily volume in history two days in a row this week, Morgan Creek Digital co-founder Anthony Pompliano noted, adding that Bitcoin price was already up over 100 percent in 2019.

Beyond Bitcoin price, CME Group reported its Bitcoin futures product had likewise seen record volume on Monday.

China, Consensus And eBay

Attempting to find a reason for the strength of the parabolic run meanwhile, many cited the ongoing US – China trade war tensions as fuelling demand from what was once Bitcoin’s biggest market.

For Tom Lee, the Fundstrat co-founder and frequent bullish forecaster, this week’s Consensus 2019 annual conference also provided motivation for Bitcoin price gains.

The event had failed to make any impact on markets in 2018, with commentators noting that this year, eBay’s sponsorship and conspicuously pro-crypto presence had created an entirely different atmosphere.

As Bitcoinist reported, the online marketplace’s publicity material suggested it would at least introduce some form of cryptocurrency-focused payment options in the future.

Where will Bitcoin price go this week? Let us know in the comments below!


Images via Shutterstock

The post Bitcoin Price Hits $8.3K Yearly High As Bull Market ‘99%’ Guaranteed appeared first on Bitcoinist.com.

Source: Bitcoininst

Here are 5 theories for the Bitcoin price spike

Bitcoin spiked to more than $7,500 on Sunday — a sharp rise from its $5,000 level at the start of May, and more than double its price in mid-December. Analysts have struggled to identify one single catalyst.

“With no major news factors behind the aggressive appreciation, the sharp $1000 jump over the weekend remains a mystery to investors,” wrote Lukman Otunuga, Research Analyst at FXTM, in a research note.

However, crypto-fans have weighed in with competing theories on its sudden rise, which run the gamut from compelling to wildly far-fetched.

Here are five reasons for the rise, according to Reddit users:

1. Safe haven

“It’s possible that a great number of rich people know that the traditional markets are effed eight ways to Tuesday,” wrote diydude2on the r/bitcoin thread’s daily discussion.

President Trump has sparked a global market sell-off after accusing China of walking back agreed provisions in a draft trade deal, hiking tariffs on $200 billion of Chinese goods, and preparing to expand tariffs to effectively all Chinese products in the next month if a trade agreement isn’t struck. Investors may have bought up Bitcoin to hedge their exposure to conventional assets.

2. Mainstream appeal

“Institutions are scrambling to get in ahead of the traditional brokerages’ launch (Fidelity, Ameritrade, Etrade) so they can dump on the next wave of retail investors to enter the space,” wrote Savage_X in the same discussion.

Fidelity, one of the world’s largest asset managers, will begin buying and selling bitcoin for its institutional customers in the next few weeks, according to Bloomberg. Online broker TD Ameritradeintroduced trading of bitcoin futures in December, while securities brokerage E*Trade is preparing to enable cryptocurrency trading on its platform, Bloomberg wrote.

Rival institutions could be buying up bitcoin with the expectation that the entry of major players into the market could bolster the cryptocurrency’s credibility and drive mainstream purchases, pushing up its price.

3. Exodus from alt coins

“The ICO experiment is over,” wrote gonzales82 in a thread about the Bitcoin spike, referring to the recent boom in cryptocurrency launches known as initial coin offerings.

“People are waking up to the realization that bitcoin is…

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