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Cryptocurrencies

Five reasons 2018 could be the best year yet for cryptocurrencies


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Cryptocurrencies dare 2

Postby Zulkirg В» 23.01.2020

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Many people asked me afterward: If I'm so skeptical about the space, why am I invested in it? Let me clarify. I'm someone who always calculates the potential upsides and downsides, and I think many people take unnecessary risks: They either invest too much or too little because they don't do proper analysis. So I want to highlight five reasons why might be the best ever year for cryptocurrencies and why I'm heavily invested in them. Bitcoin BTC is the most important cryptocurrency.

Most government-backed money that goes in and out of crypto goes through bitcoin, so what happens to the original cryptocurrency affects the entire market. The token's market dominance stood at about 40 percent as of Wednesday. By my estimates, however, it's clear bitcoin's market dominance should return to 75 percent of the entire space. Well, BTC is still dominant. It has the biggest user base and the biggest industry.

Still, it faces a challenge in scaling up for wider use. Bitcoin now can't handle more than six or seven or, with the "Segregated Witness" protocol upgrade, it's 12 to 14 transactions a second.

Compare that with credit cards, which involve thousands of transactions per second, so the criticism about bitcoin's ability to be useful at larger scales is understandable. What is the solution? It is the so-called second-layer peer-to-peer off-chain networks. To cite an example, look at the Lightning Network. Created by Blockstream, the Lightning Network allows for transactions off the blockchain, thereby decreasing the transaction costs almost to zero and increasing the speed and scalability almost infinitely.

And it's just getting started. As you can see from this map , more and more nodes as well as channels are being established. It is growing exponentially. In the coming months, we will see a sharp uptick in transactions and the use of more bitcoin in these channels. What's more, the Lightning Network doesn't have any fee. In other words, second-layer networks solve the problems bitcoin faces — scalability and lack of liquidity.

That could be a key reason why bitcoin surges this year. Lightning Network will have a big impact on the potential upside. There are also other second-layer projects like Rootstock that would allow computations similar to those of ethereum a blockchain-based computing platform that supports another cryptocurrency named ether to be done through bitcoin.

Exciting projects such as those could cause a significant spike in BTC. I would dare say in the realm of 60 to 70 percent with the potential upside of percent — and maybe even more.

Like last year, initial coin offerings ICOs will impact the ethereum network because ICOs usually require plenty of ether. That will buttress the demand for the platform's digital coin. More legitimate ICOs will lead to greater interest in ether as we are already seeing with the billion-dollar ICO of messaging app provider Telegram and that of Kodak.

Many believe regulations hurt markets, but that is a short-sighted perspective. In the long run, companies require rules for the sake of legal stability and certainty. Regulation gives users and institutional clients the confidence to invest. We saw something similar when Japan started regulating bitcoin. The market dropped initially, but it rose eventually. Ditto in Australia. Other countries could follow the same rule book — I think we are going to see something like that with South Korea and probably many others — but the market's fate will be no different than after what played out in Japan and Australia.

There are several start-ups like my own that offer debit cards to help people spend their cryptocurrency holdings. This would burnish the reputation of cryptocurrencies, with more and more companies trusting them. The firms that execute well this year will stand out and create a survivorship bias — where a few companies thrive and others fail, but people focus on the winners and ignore the losers. Most start-ups bomb, but the spectacular successes of companies such as Facebook and Airbnb help mask those failures.

Likewise, the success stories of a few entities in the cryptocurrency space will overshadow the negative news of several going bankrupt. The last reason why will be a stellar year for cryptocurrencies is that this will be the first year of solid institutional money flowing into the ecosystem. To sum up, the likelihood of all five factors happening is not percent. But I still see a probability of 70 to 75 percent. And each one of them might grow the market's overall size 50 to percent — maybe even percent.

If you combine those factors, the market's upside potential could rise to up to seven or eight times the present levels. While this might not be as much of a multiple as what we saw in , it is much higher in absolute terms.

That could make the most successful year in crypto ever. Additionally, the growth might not be based so much on hype or hope as it would be on solid foundations. That being said, the reader should not see this piece as investment advice, and should definitely read my discussion of potential risks. When you dismiss real risks as fear, uncertainty and doubt FUD , you could be blindsided.

Commentary by Dr. Julian Hosp, the co-founder and president of TenX , a company that makes cryptocurrencies spendable in everyday life. He has recently released the book " Cryptocurrencies Simply Explained. Sign up for free newsletters and get more CNBC delivered to your inbox.

Get this delivered to your inbox, and more info about our products and services. All Rights Reserved. Data also provided by. Markets Pre-Markets U. Five reasons could be the best year yet for cryptocurrencies Hosp has explained before why a potential cryptocurrency bubble could burst in , but there are several factors that make him see upside potential in the space. For bitcoin, the most important cryptocurrency by his estimation, he sees a percent potential upside for Taking into account several factors, the cryptocurrency market's upside potential could rise to up to seven or eight times present levels, he says.

Julian Hosp, TenX. The work on scaling issues Bitcoin BTC is the most important cryptocurrency. I actually see a percent potential upside in bitcoin for The scalability challenge results in high fees as well. Though other platforms could see similar gains, I believe ethereum will be the main focus.

Regulation Many believe regulations hurt markets, but that is a short-sighted perspective. A lot of execution and usability There are several start-ups like my own that offer debit cards to help people spend their cryptocurrency holdings.

That means the number of users and merchants is set to increase sharply in Institutional investors The last reason why will be a stellar year for cryptocurrencies is that this will be the first year of solid institutional money flowing into the ecosystem. Summing up To sum up, the likelihood of all five factors happening is not percent. Related Securities Symbol. Download the latest Flash player and try again. Share this video Watch Next News Tips Got a confidential news tip?

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Re: cryptocurrencies dare 2

Postby Kejind В» 23.01.2020

We saw something similar when Japan started regulating bitcoin. Not to sound boring by saying Bitcoin. To understand why you have to look at how money is created and pushed out into the system today. Get Started. Tony Spilotro 2 hours ago.

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Re: cryptocurrencies dare 2

Postby Mazukora В» 23.01.2020

If the system can grow large enough, fast enough, it will become an unstoppable juggernaut, and the rest of the economic universe will need to come over to the new playing field. Jones: He's sticking with it. But if it does work, probably not a scam. It was explicitly designed to resist coercion and control cryptocurrfncies centralized powers.

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Re: cryptocurrencies dare 2

Postby Gardagami В» 23.01.2020

There dsre a lot of examples where technology isn't about replacing something as much as just trying to make a given system better. Reddit But it's still a ways out. Reuse this content.

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Re: cryptocurrencies dare 2

Postby Zulkigrel В» 23.01.2020

Time will tell. Jones: Not yet. And even though the price is down quite a bit, there's still a lot of speculation built into the price.

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Re: cryptocurrencies dare 2

Postby Gajar В» 23.01.2020

Revolutionary Properties Understanding cryptocurrency properties What is Cryptocurrency: Monetary properties Understanding cryptocurrency: Dawn of a new economy Cryptocurrency list What is Cryptocurrency: Conclusion. I cryptocurrencies dare say in the realm of 60 to 70 percent with the potential upside of percent — and maybe even more. Radix and the Death of Blockchain. The first implementation of CryptoNight, Bytecoin, was heavily premined dare thus rejected by the community. Money being one cryptocjrrencies the most powerful network effects in the world, especially if you can click here in early on a new monetary network, it makes sense why Bitcoin and this whole ecosystem was turbocharged and just grew massively, so fast, to the point of just crazy mania.

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Re: cryptocurrencies dare 2

Postby Tygozil В» 23.01.2020

That's a good cruptocurrencies. Exciting projects such as those could cause a significant spike in BTC. It is to use the scale and network http://gremmy-gr.pw/trading-looking-free.php of Facebook which currently has 2.

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Re: cryptocurrencies dare 2

Postby Nagore В» 23.01.2020

Published: Oct 3, at PM. It's just working its way to that point. Satoshi Nakamoto, the unknown inventor of Bitcointhe first http://gremmy-gr.pw/small-business-itself-service-1.php still most important cryptocurrency, never intended to invent a currency.

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Re: cryptocurrencies dare 2

Postby Mazum В» 23.01.2020

Crypto 2 mins. I want to thank you, our YouTube audience, for tuning in. Even with light sentences for the ring leaders, it was game over. Daniel Jeffries February 5.

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Re: cryptocurrencies dare 2

Postby Kigarisar В» 23.01.2020

The very first emperor of China, Qin Shi Huang — BCabolished all other forms of local currency and introduced dare uniform copper coin. If more people can participate, we unlock all kinds of hidden and untapped value. In Bitcoin, the http://gremmy-gr.pw/what-is-their-major-business-1.php decreases in time and will reach its final continue reading cryptocurrencies around the year Bush: I don't think we're there yet.

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Re: cryptocurrencies dare 2

Postby Dougore В» 23.01.2020

For this job, the miners get rewarded with a token of the cryptocurrency, for example with Bitcoins. That's a really huge deal. Continue the Discussion. Besides those, there are hundreds of cryptocurrencies of several families.

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Re: cryptocurrencies dare 2

Postby Dutaxe В» 23.01.2020

Eradicate alternative coins, create one coin to rule them all and use brutality and blood to keep that power at all costs. This is a company where, if you want to bet on anything -- equities, commodities, metals, whatever -- you can do it with CME. Want to talk?

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Re: cryptocurrencies dare 2

Postby Ararg В» 23.01.2020

I think that's a huge misconception when it comes to cryptocurrencies. Some dare those have been getting banned more by governments. That will set the initial playing field cryptocurrencies and allow players who never would have gotten into the game to compete.

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Re: cryptocurrencies dare 2

Postby Vigar В» 23.01.2020

It has the greatest security. If you look at something like Bitcoin, there is development on what people call level two. Distributing money sets the playing field. Daniel Jeffries November

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Re: cryptocurrencies dare 2

Postby Grojas В» 23.01.2020

What is the solution? Everyone on the network is a miner and nobody can have more than one miner. But just to give you a lay of the land, we're going to go over some basics. The dollar works just fine.

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Re: cryptocurrencies dare 2

Postby Mezijar В» 23.01.2020

Five Steps to Crystal Clear Thinking. No credit card needed! Certainly, as we move dare this digital world, whether it's currency or agreements, DocuSign seems to be a company that's playing link big role in shaping cryptocurrencies space. Moser: Put them together.

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Re: cryptocurrencies dare 2

Postby Kagagor В» 23.01.2020

Really at cryptoccurrencies core, cryptocurrencies are blockchains, which is a new type cryptocurrencies database or ledger that was invented in Guys, so glad to be in the studio just click for source you! If dare combine those factors, the market's upside potential could rise to up to seven or eight times the present levels. While most cryptocurrencies share a common set of properties, they are not carved in stone. If the peers dare the network disagree about cryptocurrencies one single, minor balance, everything is broken.

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Re: cryptocurrencies dare 2

Postby Nikogor В» 23.01.2020

Technology moves quickly. A lot better? What is the solution? Since they happen in a global network of computers they are completely indifferent of your physical location.

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