Day: November 6, 2017

Day two of a popular bitcoin developer conference saw evidence the technical community is perhaps being challenged by larger changes in blockchain.

It appears we are starting off this week with more of the same trends we saw appear yesterday. More specifically, the Ethereum Classic price pump is far from over, even though the currency itself may not necessarily warrant this price label whatsoever. Over the past 24 hours, EC appreciated by another 26.21% in value, pushing the Ethereum Classic price to $15.2. It is evident this trend may continue for some time, although it will run out of steam eventually.

Ethereum Classic Price Keeps Rising

It is always interesting to see if an altcoin gains value based on development updates or just speculation. In the latter case, speculation usually results in pump-and-dump schemes which can run for a few hours or even multiple days. We have seen a Bitcoin Cash pump last for about four days last week, which was rather impressive. It is possible Ethereum Classic will see the same cycle, as the volume is coming from the exact same exchange right now.

More specifically, the Ethereum Cash price has risen from $10 to $15.2 without any apparent reason. Although the current price appreciation is a direct reaction to Ethereum Classic losing a lot of value over the past few weeks due to the Bitcoin price movements, this major surge isn’t warranted whatsoever. Given the small volume needed to artificially inflate the Ethereum Classic price these days, a lot of profit can be made with very little effort. Once profit taking occurs en masse, this value will come down again sooner rather than later.

For the time being, no one knows when this will happen exactly. More specifically, the trading volume is picking up and ETC has reclaimed a spot in the top 10 cryptocurrencies ranked by market cap. One could argue the market cap of ETC is far beyond what it should be. Additionally, some of the coins in the top 10 are vastly undervalued and have been for quite some time now. Cryptocurrency continues to grow in general and all cryptocurrencies will see some form of uptrend sooner rather than later.

Speaking of the Ethereum Classic trading volume, over $588.5m worth of ETC has changed hands in the past 24 hours. This is a pretty solid number for an altcoin which serves a very limited purpose. It also shows how this price pump is attracting a lot of attention, even though the vast majority of volume comes from one South Korean exchange in particular. That in itself is not surprising whatsoever, as we have seen this particular platform generate a fair few pump-and-dump cycles for different cryptocurrencies as of late.

By now, most people have figured out this company is none other than Bithumb. It has over 53.13% of all ETC trading right now. Coinone, in second place, generated another 717.15%. It is evident that, without these platforms, there would be no Ethereum Classic price action whatsoever. Moreover, it shows how this is a clear pump-and-dump scheme that will end sooner or later. Bithumb traders will move on to the next coin in the coming days. It is unclear which one that will be, although Dash appears to be a likely candidate. Time will tell what the future holds.

Speculators have made a lot of money from this Ethereum Classic price pump, that much is evident. It is certainly possible we will see a new all-time high for ETC is this trend continues. Then again, the inevitable correction will push the price back down to its regular value of $10 or less. Remember to take profits whenever you can before this trend reverses in the near future. It is good to see altcoins recover, but this current trend is pretty blatant and not fueled by any major developments whatsoever.  

Prior to CME Group’s Bitcoin futures announcement, warnings came over an impending dotcom-style meltdown for Bitcoin.

IBM has provided feedback to the government of British Columbia promoting the use of blockchain technology in the legal distribution of cannabis.

Bitcoin price predictions are either overly positive or negative. It seems level-headedness is difficult to come by in this regard. Scott Kelly, CEO of Black Dog Venture Partners, claims a Bitcoin crash is imminent. Not because it is overvalued or anything, but how the “massive trading” is problematic. It is the first time someone considers high liquidity a problem for any financial asset. A strange situation, that much is certain.

There is no shortage of platforms trading Bitcoin and other cryptocurrencies these days. Given the recent Bitcoin price surge, it is only normal we see more people trading the world’s leading cryptocurrency. This has allowed the price to appreciate over time and successfully retain its value at the same time. Not everyone thinks the massive trading of BTC is a good thing, though. Scott Kelly sees it as the aspect that will cause an imminent Bitcoin price crash.

Scott Kelly Uses a Flawed Theory

This train of thought is rather interesting to follow. More specifically, without liquidity, the Bitcoin price would have collapsed a while ago. An increase in trading can only be a good thing, for all intents and purposes. It is true the Bitcoin price is mainly dominated by speculation right now, though. That doesn’t automatically mean we will see a collapse either. Scott Kelly is issuing a very odd statement in this regard. Drawing parallels to traditional trading won’t work out in this regard either. More specifically, none of the previous bubbles compares to Bitcoin in the slightest.

In virtually every case, those markets collapsed after “regular people” got on board. With Bitcoin, markets have been open to everyone and anyone from day one. There is no reason to make this comparison whatsoever. It seems as if Scott Kelly wants accredited investors to have access to Bitcoin. The rest of the world shouldn’t meddle in things they “can’t comprehend”. We have seen Russian government officials echo similar statements not too long ago. Bitcoin is and will always be a free market, though.

Scott Kelly is trying to discredit Bitcoin like so many higher-ups in the financial sector. All of these remarks have fallen on deaf ears. The more types like Scott Kelly oppose Bitcoin, the more traction it will gain. This disruptive force will not be held down by any means. Speculation will always be a big part of any cryptocurrency. However, one shouldn’t forget Bitcoin also has real-life use cases. The currency will see a correction sooner or later, but a collapse seems highly unlikely.

The post Black Dog Venture Partners CEO Scott Kelly Claims Bitcoin’s Liquidity Will Cause a Crash appeared first on NEWSBTC.

Reid believes interest in digital currencies is currently based on Blockchain hype, but that they could be a good hedge when fiat collapses.

UBS chief global economist Paul Donovan has compared bitcoin to the Netherland’s 1600s tulip crisis, but noted he was a fan of blockchain technology.