Ethereum, currently the second largest cryptocurrency after Bitcoin, will experience a “monumental, defining global breakout” when smart contracts can accept outside data.
The bullish prediction from influential technology expert, Ian McLeod of Thomas Crown Art, the world’s leading art-tech agency, comes as Ethereum’s price jumped 4% on Monday, adding some 8% over the last week, to trade at highs of $210.
Mr McLeod comments: “Ethereum is back in bull territory and is on track to enjoy considerable gains before year-end.
“I maintain that we can expect Ethereum to hit $500 by the end of 2018 and go on an overall upward trajectory throughout 2019.
“However, what will be the monumental, defining driver for its global breakout? Oracles.
“Oracles link Ethereum-run smart contracts to the real world and will be responsible for the digital currency to enter an entirely new phase of mass adoption.”
Oracles are trusted data feeds that deliver information into the smart contract, thereby taking away the requirement for smart contracts to directly access information outside their network. Typically, oracles are usually supplied by third parties which are authorised by the organisations that use them.
Ian McLeod continues: “Oracles are a massive step forward in the practical utilisation of smart contracts. They allow smart contracts to accept outside data to decide upon an action – and this has a myriad of highly-demanded, real-world use-cases in almost every sector.
“For instance, they can help insurance companies with pay-outs on flight delays, sports betting firms with result information coming from various trusted sources, and can help us in the art world by conclusively proving the provenance of artwork quickly and easily.”
He adds: “Using a blockchain to authenticate artwork is an ideal use-case for smart contracts. They provide the ability to store a permanent, immutable record of artwork at the point of creation which can be used to authenticate registered works. Oracles will further enhance this concept and lighten smart contracts’ work processes.”
The tech expert concludes: “When Ethereum-based smart contracts are fed a robust and reliable information through oracles to make precise and correct judgements, Ethereum’s price will explode.”
Last month, Mr Mcleod noted: “We can expect Bitcoin to lose 50% of its cryptocurrency market share to Ethereum, its nearest rival, within five years.
“Ethereum is already light years ahead of Bitcoin in everything but price – and this gap will become increasingly apparent as more and more investors jump into crypto.”
(Source: Thomas Crown Art)
Bitcoin will lose 50% of its cryptocurrency market share to Ethereum within five years, states an influential tech expert and business analyst.
The comments from Ian Mcloed, from Thomas Crown Art, the world’s leading art-tech agency that he established with renowned art dealer, Stephen Howes, comes as Ethereum, the world’s second-largest cryptocurrency by market cap, began a price recovery on Friday after being hit hard with a major sell-off in recent weeks.
Bitcoin – the biggest digital currency – had also been in decline, but it bounced back quicker than its nearest competitor.
Indeed, Ethereum had crashed 85% overall this year.
However, Ethereum is regained ground late last week, jumping almost 14 per cent after its most recent plunge, only find itself trading again 10 per cent lower once more in the past 24 hours.
What is happening? And what does the future hold for Ethereum?
Mr Mcloed observes: “Turbulence is a regular, and sometimes welcome, feature of the crypto sector. Therefore, the Ethereum rebound was, and is, inevitable.
“But not only do we think it will rebound considerably before the end of 2018, I believe that over the longer time it will significantly dent Bitcoin’s dominance.
“In fact, I think we can expect Bitcoin to lose 50 per cent of its cryptocurrency market share to Ethereum, its nearest rival, within five years.”
Why is he so confident?
“Simply, Ethereum offers more uses and solutions than Bitcoin, and it’s backed with superior blockchain technology,” says Mr Mcloed.
“This is why we use Ethereum’s blockchain in our art business. It has allowed us to create a system to use artworks as a literal store of value; it becomes a cryptocurrency wallet.
“It also solves authenticity and provenance issues – essential in the world of art. All our works of art are logged on the Ethereum’s blockchain with a unique ‘smART’ contract.”
Last month, Stephen Howes explained: “Using this cutting-edge technology, the art world can eradicate one of its biggest and most expensive problems – forgery – and can protect artists, galleries, and private owners and collectors.”
Ian Mcloed concludes: “Whilst there will continue to be peaks and troughs in the wider cryptocurrency market, due to its inherent strong core values, Ethereum will steadily increase in value in the next few years and beyond.
“Unless Bitcoin does more now to tackle scalability issues, and improves the technology it runs on, we cannot see how it can catch up with Ethereum over the next five years or so, when the crypto market will be even more mainstream.
“Ethereum is already light years ahead of Bitcoin in everything but price – and this gap will become increasingly apparent as more and more investors jump into crypto.”
(Source: Thomas Crown Art)
Do you want to go from being a stock market dreamer to a high earner? A new tool could be what you need to transform your hindsight into insight.
How Rich Would You Be? uses market data from the past 12 months to reveal exactly what you could have made if you invested in a variety of cryptocurrencies, commodities and companies. It also forecasts the potential gains for each over the coming months to predict the next big investment opportunity.
Via a bespoke algorithm that uses machine learning, the tool feeds historical data on all 15 options through a recurrent neural network to unveil the future rise and fall in value for each investment.
The 15 commodities monitored include:
All data is displayed in concise visualisations, allowing you to compare individual or multiple investments side-by-side.
The future predictions reveal that the cryptocurrencies will experience the highest percentage increase, yielding more profit than commodities or companies.
The algorithm also reveals that the value of Ethereum will skyrocket from $289.26 per unit to $788.42 if it continues on its predicted path - an astounding 173% increase by October 28th.
Similarly, Ripple investors should look forward to the next month since the cryptocurrency is charted to rise in value by 159% - surging from $0.34 per unit to $0.88 per unit.
Alphabet Inc should perhaps be avoided as the value of the company is set to drop -10% per share. Following in Alphabet’s footsteps is Apple, which is set to fall -8% from $227.63 per share to $208.47.
Despite the unpredictability of the cryptocurrency market, the historical data shows that when compared against commodity and company investments, EOS, Bitcoin and Ripple boasted three of the top five investments.
EOS aficionados who invested in September 2017 will have noticed a 786% increase in price per unit over the last year - a jump from $0.73 per unit to $6.47.
Though it is now set to undergo a negative percentage change, Amazon experienced a 106% increase in value per share between September 2017 and September 2018.
Unfortunately for commodity investors, the two investments that have made the biggest losses over the past year include coffee and copper. Coffee has made the most significant loss over the last year, with a -20% change - dropping from $129.65 per pound to $1103.33.
Copper investors will also have been disappointed with the -12% change in value over the previous year from $3.06 per pound to $2.68.
Commodity investors who chose to invest in oil over copper would have enjoyed a 46% rise from $48.07 per barrel to $69.97 in just one year.
Values: Historical and predicted change in 15 leading investment choices
|
Investment |
Value in 11/09/17 ($) | Value in 03/09/18 ($) | Change % | Predicted Value in 28/10/18 ($) | Predicted Change % |
| Bitcoin (per unit) |
4,161.27 | 7,260.06 | 74% | 8,920.79 | 23% |
| Ethereum (per unit) |
294.53 | 289.26 | -2% | 788.42 | 173% |
| Ripple (per unit) |
0.21 | 0.34 | 62% | 0.88 | 159% |
| Bitcoin Cash (per unit) |
537.81 | 626.36 | 16% | 1,491.45 | 138% |
| EOS (per unit) |
0.73 | 6.47 | 786% | 9.93 | 53% |
| Gold (per ounce) |
1,334.20 | 1,200.05 | -10% | 1,292.70 | 8% |
| Oil (per barrel) |
48.07 | 69.97 | 46% | 70.96 | 1% |
| Copper (per pound) |
3.06 | 2.68 | -12% | 3.06 | 14% |
| Wheat (per bushel) |
440.00 | 539.00 | 23% | 555.68 | 3% |
| Coffee (per pound) |
129.65 | 103.33 | -20% | 111.90 | 8% |
| Apple (per share) |
161.50 | 227.63 | 41% | 208.47 | -8% |
| Alphabet (Google) (per share) |
929.08 | 1,218.19 | 31% | 1,097.68 | -10% |
| Microsoft (per share) |
74.76 | 112.33 | 50% | 108.68 | -3% |
| Amazon (per share) |
977.96 | 2,012.71 | 106% | 1,901.89 | -6% |
| Facebook (per share) |
173.51 | 175.73 | 1% | 184.87 | 5% |
(Source: How Rich Would You Be?)
Current market activity indicates that cryptocurrencies are set for “another considerable surge in prices gains” in the near future and Ethereum’s price could reach $2,500 by the end of the year - but investors should exercise caution.
This forecast from Nigel Green, the founder and CEO of deVere Group, comes after a strong few days ithe cryptocurrency markets.
Mr Green, whose firm launched the cryptocurrency exchange app, deVere Crypto, comments: “Most major cryptocurrencies Current market activity indicates that cryptocurrencies are set for “another considerable surge in prices gains” in the near future and Ethereum’s price could reach $2,500 by the ehave been posting big gains over the last few days.
“Current market activity indicates that the major cryptocurrencies just like the mcdvoice has done so far that are set for another considerable surge in prices gains in the near future.”
He continues: “What’s fuelling this current rally in crypto prices? There are several key motivators.
“These include the growing integration with and adoption by major banks and other financial institutions.
“Indeed, 20 per cent of all financial firms, ranging from hedge funds to banking giants, are now considering trading digital currencies in the 12 months, according to a new Thomson Reuters survey published this week.
“Another key reason for the rally is that there’s a growing awareness of the need and demand for digital, global currencies in a digitalised, globalised world.
“The upward trend is also being triggered by regulation, which most experts now believe is inevitable. This will give investors even more protection and long-term confidence in the market.”
The deVere CEO believes that despite Bitcoin taking the headlines, Ethereum could be the real story here.
He notes: “It’s interesting to note that even with an impressive one-week jump of 11.3 per cent, Bitcoin - the world’s largest by market capitalisation – is the worst performer amongst the biggest cryptocurrencies.
“The price of Ethereum is predicted to increase significantly this year, and could hit $2,500 by the end of 2018 with a further increase by 2019 and 2020.
“This general upswing will be fuelled by three mains drivers. First, more and more platforms are using Ethereum as a means of trading. Second, the increased use of smart contracts by Ethereum. And third, the decentralisation of cloud computing.”
Mr Green goes on to say: “Ethereum can be expected to solidify its position as the second most valuable and used cryptocurrency token in the world. This consistency of the Ethereum token will appreciate well into the future. As entrepreneurs, venture capitalists, bankers and financial houses are looking for stability and safer trading conditions, and Ethereum is offering that security.”
Mr Green concludes: “We’re certainly entering crypto bull territory, with many retail and institutional investors now finding that cryptocurrencies can no longer ignore the opportunities.
“However, cryptocurrency markets remain volatile. Caution should be exercised and professional advice sought.”
(Source: deVere Group)
Price comparison site finder.com has released its monthly Cryptocurrency Predictions Survey on how the top 10 Cryptocurrencies by market cap and three trending coins will perform in 2018.
Out of the 13 coins, finder.com’s 13 panellists predict that Dogecoin (DOGE) will experience the greatest percentage growth by December 31, 2018 (5,838 percent). DOGE was sitting at $0.003 (£0.0021) per unit on March 27, 2018, and is forecast to reach $0.1938 (£0.14) by the end of the year.
Cardano (ADA) is expected to have the second greatest increase in growth by the end of the year (812 percent), followed by Ripple (XRP) (526 percent).
Despite this growth, Bitcoin (BTC) is still expected to reign as the highest value per unit, predicted to hit $9,100 (£6,464) by May 1, 2018, and reaching $21,485 (£15,261) by December 31, 2018.
Although presently a bearish market, April is the second consecutive month that panellists have predicted no drops in value for these coins by the end of 2018, signalling optimism for future growth.
Comparing the forecast market capitalizations for Bitcoin (BTC), Bitcoin Cash (BCH) and Ethereum (ETH) – the only three of the 13 coins with reported number of coins available – Ethereum (ETH) is predicted to see the highest growth by the end of the year (234 percent). This was more than double that of Bitcoin (BTC) with a 114 percent forecast increase, and Bitcoin Cash (BCH) at 40 percent.
The 13 panellists in the April Cryptocurrency Predictions Report include:
The full details of the survey, complete with comments from the panellists, can be found here: https://www.finder.com/uk/cryptocurrency-predictions
Jon Ostler, UK CEO at finder.com said, “While the downward trend has continued over the past month for many coins, our panel remains bullish in a presently bearish market, signalling optimism for future growth. This is the second consecutive month where panellists are expecting no drop in value for any of the included coins by the end of 2018. While Dogecoin (DOGE), Cardano (ADA), Ripple (XRP), Ethereum (ETH) and Stellar Lumens (XLM) are expected to see greater percentage growth than Bitcoin (BTC) this year, BTC is still forecast by our panel to reach the highest value of the 13 coins, at $21,485 (£15,261) by December 31. Before considering purchasing Cryptocurrency, it’s crucial to understand that the market is incredibly volatile and will continue to represent high risk. It’s important to do your research, seek professional advice and compare your options before taking the leap into the market.”
(Source: Rooster)
From the $20,000 mark back down to $7,000 Bitcoin is generally on the low, and with Google, Facebook and Twitter's decision to ban all ads related to ICOs, it's clear the world isn't on cryptoculture's side.
What are your thoughts on the future of crypto investment/bitcoin and the rise of other currencies? Are you confident the cryptowave will continue to reach the shores of new investors? Find out in this week’s Your Thoughts.
Andrew Pritchard, MD Blockchain, 10x Growth Account:
It’s been a tough time for Bitcoin and crypto investors as the markets continues to go backwards. The bears have continued to win the battle against the bulls pushing the price of BTC and most altcoins further downwards. But, what is causing the drop in the markets?
There are several influences that are helping the bears as the cryptomarket struggles to gain any forward momentum.
Firstly, increasing regulatory framework (this is a short term negative issue but will ultimately be a very positive outcome) as each time the SEC/FCA, or any regulatory body for that matter, announces new regulations, even if supporting crypto, the markets react negatively.
The Governor of the Bank of England, Mark Carney called for greater regulation of cryptocurrencies and in Japan, punishment notices were issued to several exchanges while forcing some to halt trading entirely.
Secondly, the Mt Gox Bitcoin dump has been affecting the market for a few weeks as thousands and thousands of Bitcoins have been put on the market to be sold. This increased supply and cooled demand has led to further downward pressure on the price of Bitcoin. Basic economics of supply and demand has reduced the price. I.E Supply increases and demand remains constant or reduces, then price will fall.
However, as a positive supporter of the Cryptomarket, it is only a matter of time before the bulls return. Yes, Bitcoin’s price has taken a beating the past ten days due to major events negatively impacting market sentiment. However, one thing remains exceptionally clear. Blockchain technology is here to stay.
The next 6 months for major cryptocurrencies like bitcoin, is likely to be very, very bullish, as the public start to enter market with easier routes such as Coinbase and Barclays collaboration on faster payment methods.
Savva Kerdemelidis, Legal Adviser, LegalEdge:
The technology and protocol behind cryptocurrencies brings an exciting method to transact in a new and more efficient way. So long as cryptocurrencies can achieve mainstream adoption beyond simply being a "store of value", then there remains a significant potential for growth. As with the dotcom era, we’ll see winners and many losers. In my view, the potential for cryptocurrencies is just beginning. I expect to see new applications and use cases, particularly around governance or decentralised autonomous organisations (DAOs).
Although there’s been a lot of hype, cryptocurrency has not reached mainstream retail investors. Technological barriers have led to a lack of access and the risk of losing your investment, for example, by losing your password or transferring funds to an incompatible wallet. At the same time, regulatory risk has been a real factor in terms of curbing take-up. Both investment and adoption will increase once these barriers decrease and are better understood, with the availability of user-friendly applications.
If you look at investors, most of them have taken over 50% losses since the new year. Naturally this has impacted the appetite for ICOs and other investments. However, many will likely ride it out until June or July when the market is expected to recover.
Samuel Leach, FX Trader and Founder, Samuel & Co. Trading and Yield Coin:
With the recent news of Facebook and Twitter banning cryptocurrency adverts and Google potentially following suit in June 2018, it cannot be denied that there is a negative feeling around crypto.
Regulatory bodies such as the ICO, FCA, and GBX are also becoming more vocal; with new regulations being created and set to be enforced in the coming months. This is causing unease among potential investors as they are reluctant to invest in a market that currently doesn’t have widespread regulation, and which could risk them becoming uncompliant in the future. As such, crypto is in a limbo stage where current investors are cashing out and potential investors are hesitant to part with their money.
In reaction to the continuous stream of negative feeling surrounding the crypto market, cash outs are increasing at an unprecedented rate. This won’t recover until governments and regulatory bodies align and have a consistent strategy and overall view point on the crypto market. Therefore, it is possible we could see Bitcoin bottom out to $6,500. However, I believe we will see the markets hover around $9,000 in the short term, until there is more clarification around the wider view of the market.
Kevin Murcko, CEO, CoinMetro:
Prices between various cryptocurrencies are linked to an extent; when Bitcoin goes up, Ethereum or XRP, for example, will often follow suit. This is no different to how company stocks tend to follow the direction of the general market, their sector or industry rivals. For instance, a negative financial report for one retail stock often drags down other retail stocks as “guilt by association” turns things bearish for the whole sector. Cryptocurrencies are just as exposed to this effect if not more given the fact that the money flows currently are mainly from retail investors, who are much more susceptible to following the trend.
It is unlikely that 6-11k is the new range for BTC. The simple fact that it has existed far above these ranges for prolonged periods is an indicator that the floor and ceiling have not been set at all yet. Rather, BTC is still free-floating, and until the market as a whole becomes more regimented, a stable floor and ceiling won’t exist for any of the assets.
Increased stability is important for the future of crypto, as well as for overcoming the sector’s perceived reputation for being a poor store of value. In part, price stability will come from the introduction of more national and harmonised global regulatory oversight. This will allow for more institutional involvement and the creation of liquidity by way of synthetic instruments like futures, ETNs, ETFs, etc. It will also come from the realization amongst the general public that, like all investments, crypto does carry risk. As with other securities, prices are liable to go up or down.
Corrections have occurred, but it’s important not to think of crypto prices myopically: the price of bitcoin, for example, is today roughly 700 percent of what it was this time last year. Long-term, cryptocurrencies remain viable multitrillion-dollar assets.
Drew Bell, Chief Developer, Ethercoin:
The future is bright for crypto investment, as eventually the market will stabilise and become a more manageable platform. The market has a lot of potential for development and it’s about time businesses started accepting it, rather than ignoring it as sooner or later, their customers will catch on the trend and look for businesses that support the crypto industry.
There will always be an air of skepticism around digital currency, because it is not a tangible product, and people have a hard time understanding its true value.
I really believe that cryptocurrency will replace more traditional forms of currencies in the next 10 -15 years, especially with the growth and adoption that Bitcoin, Ethereum and Ripple has already seen. If that growth continues and we see more currencies reaching these heights, who knows just what the future holds for this new era of payment and investment.
The key to cryptocurrency breaking through to the mainstream and reaching new investors is all about trust. If you don’t build a relationship with your investors that is centered around trust and transparency, you can’t expect them to believe in your project. At a time when it seems the world is against a new form of payment, cryptos have to be on top of their game more so now than ever before.
Even though cryptocurrency is built on blockchain, the volatility of the market is clear and can therefore deter some investors. It can be extremely difficult for cryptos to instill trust in potential investors, especially as tech giants Google, Facebook and now Twitter have banned cryptocurrency ads, making it even harder for currencies to secure investment and appeal to potential customers.
It is clear there is a lack of understanding from key players in the financial industry about this new disruptive technology, therefore highlighting the need for more mainstream education so the market can continue to grow and develop for the future.
Kerim Derhalli, CEO, Invstr:
Cryptocurrencies are here to stay but, as with any emerging market, they must undergo a transition that will eventually attract the mainstream investor.
In my opinion, that transition will entail a few important steps, firstly, in regards to scalability, which will see blockchain evolve to handle more throughput. Currently, sharding techniques have increased transactions per second from seven in traditional blockchain to 3,000 in alternative blockchains. This still falls well short of the typical 20,000 or more credit card transactions per second.
Security is critical too. Digital exchanges and wallets are secure until they are not. Anonymity and the lack of a custodian make the operational risks far greater in cryptocurrencies that in traditional financial assets. Improvements in security will be needed before cryptocurrencies represent a serious challenge to other financial assets as a store of wealth. With a July deadline set by the G20 for unified regulation of cryptocurrency, coming alongside the launch of a dedicated UK task force, things are moving in the right direction.
Fundamentally, there is still also a lack of education around cryptocurrencies among investors. The number of currencies, tokens and assets is growing at a far faster pace than our collective comprehension and most people are still struggling with the basic concepts. Once the currency starts to achieve some real, commercial utility and we are more easily able to earn, spend, save and invest in cryptocurrencies, understanding and overall acceptance will increase.
Ivan Gowan, CEO, Capital.com:
The cryptowave is only going to build more momentum in the next 12 to 18 months. Just two weeks ago Barclays announced a partnership with a leading crypto company to facilitate payments to buy Bitcoin, Ethereum and Litecoin, the most established crypto assets. This may reflect a trend of major financial institutions moving away from outright denunciation of cryptocurrencies to a cautious participation, marking a significant shift in their approach and making these assets much more accessible to new investors.
Cryptocurrencies are seeing a remarkable increase in transparency, further improving trust. There are now a number of companies specialising in interrogating the blockchain of Bitcoin, establishing whether the currency has been used in any potentially illegal transactions on the dark web. This could make a huge difference to the willingness of those new to the market to invest in the currency. Bitcoin and other cryptocurrencies still labour under a perception of being used for dodgy dealings in dark corners of the internet, but with the increase in transparency, investors will feel much more comfortable putting their money into this market.
Of course, there are many ICOs that do not go through the proper regulatory procedures before launching, and it is these less-than-scrupulous organisations that are prompting Facebook and Google banning ICO advertising. However, there are many players in the market, backed by some of the biggest venture capitalists in Silicon Valley, that are spending hundreds of thousands of dollars on legal fees to ensure that they align completely with whichever regulatory environment that they operate in. We are increasingly seeing leading regulators, such as FINMA and the Gibraltar Financial Services Commission, embracing this innovation, issuing guidance and frameworks to companies looking to issue an ICO to ensure they do so responsibly and effectively. Smaller investors, who could be priced out of investing in exciting tech stocks like Amazon and Facebook, can access fantastic opportunities with ICOs, either getting in on the ground floor in the initial offering, or when the coin is listed on an exchange.
The ICO industry is currently something of a Wild West scenario. However, we are also at the early stages of what will be a transformative asset class. There is no doubt that we will see a number of new investors in cryptocurrencies and assets increase as the market matures, as regulators get up to speed with the technology, as the big banks begin to adopt more open-minded positions and as the transparency of cryptocurrency transaction history continues to improve.
Zafar Kanani, Network Manager, Forbury Investment Network:
It is difficult to predict the future path of cryptocurrencies, though it would be safe to say that they will likely continue to proliferate, and that regulation will increasingly become a consistent feature of the landscape.
With an ever-increasing pool of choices – there are now over 1,000 cryptocurrencies – anyone considering an investment should take the time to conduct thorough diligence and invest only what they can afford to lose, especially given the growing evidence of fraudulent activity. The likes of Twitter, Google and Facebook have gone so far as to ban cryptocurrency and ICO related ads due to concerns of reputational damage resulting from users unwittingly investing in fraudulent cryptocurrencies advertised on their platforms.
Despite Bitcoin, the best-known cryptocurrency, now trading at less than half its peak in December, there is no shortage of demand from investors across all cryptocurrencies. Many cryptocurrencies have and continue to be endorsed by celebrities, further fuelling interest and growth.
Alongside these developments, the increasingly disparate range of cryptocurrency applications is engaging a broader set of stakeholders than ever. The emergence of a ‘civic’ cryptocurrency, for example, has gained momentum as a mechanism to crowdfund capital for local projects for the public good. The city of Berkeley, California, has plans for such a cryptocurrency to generate funding for affordable housing amongst other public needs.
Daniel Wolfe, CEO, Tradingene:
Personally, my confidence in crypto is undiminished, despite the recent losses. I am confident that investors will have ample opportunity to ride the cryptocurrency wave up. However, they shouldn’t expect to generate quick returns and they need to be prepared for potential extended periods of volatility before we see a consistent upward trajectory.
There is always hysteria surrounding cryptocurrencies, but many fail to grasp that it is the transformative and disruptive nature of Blockchain which will ultimately bring rewards to those who invest wisely. Investors who follow the settled rules of investment, especially diversification, will be the big winners.
However, liquidity may be hard to come by and severe losses are a possibility.
Cryptocurrencies currently consist around 0.3-0.4% of the global fiat money supply. Therefore, if you believe, as I and many other experts do, that crypto will rise over the next five years to at least five percent or so of M2, then that is a tremendous return for investors.
They will just need to be prepared to stomach the turbulence.
Adrian Daniels, Corporate Partner, Yigal Arnon:
The cryptowave will continue to reach the shores of new investors. This is not to say that there will not be changes in form, size and type of cryptocurrencies, but the wave is now a tide and it's only going in one direction. But let's go back to some basics. The "cryptowave" is based on what is known as blockchain protocols, which is a kind of software that allows data to be stored digitally on a record that is held on the computers of 1000’s of people (or nodes) across the world. This allows people who do not know each other to complete transactions without fear of being cheated. This is so, because those nodes will hold a record of each transaction in an encrypted manner on the blockchain which cannot then be undone. As a result those transactions cannot be falsified without hacking 1000's of computers simultaneously and altering their records. Consequently, there is no centralized authority and no simple way to fake transactions. Bitcoin introduced the blockchain technology almost a decade ago, since which time the technology has become vastly more versatile and sophisticated, with smart (or self-executing) contracts capable of allowing the transfer of data, goods and services in a secure and verifiable manner without any "middle-men" like banks, ad-agencies, internet traffic aggregators, and a whole bunch of other third parties which make online commerce far less efficient and much more expensive. What does all this mean, it means the technology has uses that we have only just started to imagine. Since the blockchain can store any data and each block cannot be changed, any activity can be recorded on the blockchain. This means that the blockchain can ensure that people can be incentivized for contributing to the chain, which will have enormous knock-on effects on commerce, politics, regulations and science, among others. The blockchain will also likely change how or even if we bank – we will be able to keep all of our banking records on the chain, to which each of us will be the only one with the encryption key. Our medical records will be held exclusively by us, and will be shared only with whom we wish.
ICO’s are all supposed to be based on blockchain technology. The problem has been that a lot of them were fraudulent from the get-go, and others were pipe dreams with nothing behind them. A smaller number have related to companies offering great blockchain and smart contract ideas. As the number of ICO's has grown, the regulators have become increasingly involved, to the point where the US Securities and Exchange Commission (SEC) has largely put the brakes on public ICOs (as opposed to sophisticated investors, who in theory have the wherewithal to look after themselves) in the US. As the regulators untangle the knot, public ICO's will slow down and private ICO’s to sophisticated investors will take their place. This somewhat undermines the whole “democratization” of the investment process that the ICO’s were supposed to have brought us, but it may only be a phase before clearer regulations are adopted to safeguard the public in general. Additionally, we will see larger numbers of companies offering cryptocurrencies that look much more like a token you can use for a purpose (utility token) than a share. However, as the result of increased oversight will be fewer chancers bottling air and making millions, I think we will see an increasing numbers of offerings by brilliant entrepreneurs with profoundly disruptive, highly innovative and world changing products. To hijack Winston Churchill’s famous phrase: “This isn’t the end, it isn’t even the beginning of the end, but it is perhaps the end of the beginning. But what the end will be, I think is hard for us to yet imagine.”
If you have thoughts on this, please feel free to comment below and let us know Your Thoughts.
With ICOs at the forefront of cryptoculture worldwide, blockchain technology is predominantly being driven by digital currencies and their markets, but why? Below Finance Monthly hears from Drew Bell, Chief Developer at Ethercoin, who explains why.
2018 is set to be an even bigger year for Initial Coin Offerings (ICO) than 2017, with more startup’s turning to the fundraising method to remain in control and transparent in the process. According to a report by CNBC[1], around $100million a month is raised via ICO’s, showing the demand is increasingly prominent between investors and individuals.
However, as with many emerging trends, ICOs have been met with some scepticism and criticism. Before new businesses start jumping on this trend to become the next blockchain success, it is important to understand the challenges it might face and why trust should be built into the core of its offering.
Whilst there can be fraudulent ICOs, businesses and mainstream audiences need educating and to be made aware that ICOs are a viable fundraising mechanism.
The fastest growing form of investment
There’s no denying the fact that ICOs, “the fastest growing form of investment” carries numerous benefits for businesses looking to generate significant ROI without having to seek out venture capitalists. An Initial Coin Offering can be created by just about anyone, and offers businesses an efficient and streamlined fundraising opportunity.
Aside from the obvious benefits like being able to streamline a fundraising campaign for a startup business, by conducting a decentralised application, users will be offered a much better experience.
There is also the added benefits of online marketing, where an ICO can be marketed to a large, global targeted audience with little effort and cost. Potential investors can therefore research about a particular ICO via online ads, social media and websites no matter where in the world they might of originated from. The ICO investment model is open to everyone and free from the geographical restraints associated with IPOs.
An unpredictable market
It’s widely known that the blockchain and cryptocurrency market is an unpredictable place, where the majority of business see it as a sure fire way to attract investors who are looking for the next big blockchain score. Yes, an ICO looks to be an easier and more cost-effective way to raise funds for your business, but it can be just as challenging as as securing a venture capital; but you do have more control.
One of the biggest challenges a new business can face when journeying down the ICO route is the sheer amount of competition. In an interview with Business Insider, the founder of Evercoin announced there were around 30 new ICOs launching everyday, and raising as much as $200million per ICO[2]. Businesses need to make sure they are distinguishing themselves from such a saturated market with a strong unique selling point that will not only put them ahead of the game, but generate interest and a buzz amongst investors. With so many ICO projects not having an effective marketing plan and channels to promote themselves, they can get lost in the sea of ICO scams that take centre stage.
Essential to make a difference
ICO’s are essential for businesses wanting to enter the market, and to be able to thrive, ICOs need regulatory safeguards to be implemented and investors need to be educated. Trust should be at the forefront of any businesses fundraising project, and one of the first steps to building trust is for businesses to create an extensive whitepaper and detailed roadmap.
Due to the volatile nature of the blockchain technology, it can be hard to understand the true nature of the transaction during an ICO sale. Businesses should ensure they offer a safe and secure platform to boast legitimacy can help to instill trust amongst investors.
Communication is the key to success with generating trust amongst the blockchain market. By using social media to engage and update its audiences, investors will start to feel empowered and as if they are a part of the process. This will promote a higher level of transparency and result in more investment.
In today’s unstable and saturated blockchain market, it is essential that businesses looking to start on their fundraising journey are putting security, transparency and trust at the forefront of raising capital to maintain solid investment and build credibility amongst investors.
Do you dream of becoming a Bitcoin billionaire? A brand new tool could be just what you need to make the best investment choices. Using detailed historical data across the past 14 months, Cryptocurrencies: Past, Present and Future makes cutting-edge predictions for the future of the top 10 virtual currencies.
Using an exclusive, handcrafted algorithm, this Cryptocurrency predictor feeds historical data on price, trade volume, market cap and online popularity through a variety of analytical tools, including a Recurrent Neural Network, to forecast the exact rise and fall of ten chart-topping cryptocurrencies.
The ten virtual currencies monitored within the piece include:
If you’re concerned about being overwhelmed by numbers, all of the cryptocurrencies are explained in a handy, bitesize format. What’s more, the numerical information is displayed in easy-to-read data visualisations, allowing you to compare cryptocurrencies side-by-side.
Price: projected change from 11th March 2018 to 6th May 2018
|
Cryptocurrency |
Historic Price ($) | Projected Price ($) | Projected Change ($) | Percentage Change |
| Bitcoin | 8,363.15 | 9,210.23 | 847.08 | 10% |
| Ethereum | 847.08 | 453.63 | -237.79 | -46% |
| Ripple | 0.64 | 0.24 | -0.40 | -63% |
| Bitcoin Cash | 961.95 | 2,209.68 | 1,247.73 | 130% |
| Litecoin | 151.91 | 74.27 | -77.64 | -51% |
| Cardano | 0.25 | 0.35 | 0.10 | 40% |
| NEO | 74.19 | 181.71 | 107.52 | 145% |
| Stellar | 0.23 | 0.03 | -0.20 | -87% |
| EOS | 7.79 | 10.78 | 2.99 | 38% |
| IOTA | 1.18 | 0.44 | -0.74 | -63% |
Despite the value of cryptocurrencies being constantly on the move, the algorithm reveals that Bitcoin Cash will skyrocket by $1,247.73 per unit to $2,209.68 if it continues on its predicted path - so is definitely one to look at if you’re tempted to invest.
Similarly, Chinese-produced NEO looks another strong contender for most valuable currency in the near future, with a projected increase of 145%.
Ethereum, meanwhile, is highly encouraged to be avoided, since it is charted to lose the most value, falling by a staggering $237.79 per unit. It doesn’t have the biggest percentage drop, though. That dubious honour belongs to Stellar, which is predicted to fall a shocking 87% in the next two months.
Market Cap: projected change from 11th March 2018 to 6th May 2018
| Cryptocurrency | Historic Cap ($) | Projected Cap ($) | Projected Change ($) | Percentage Change |
| Bitcoin | 142,730,988,426.02 | 154,158,455,678.37 | 11,427,467,252.35 | 8% |
| Ethereum | 68,156,366,473.25 | 41,729,418,032.89 | -26,426,948,440.36 | -39% |
| Ripple | 25,252,161,207.70 | 8,869,504,279.97 | -16,382,656,927.73 | -65% |
| Bitcoin Cash | 16,658,329,786.90 | 36,799,060,701.21 | 20,140,730,914.31 | 121% |
| Litecoin | 8,648,418,622.43 | 3,938,002,135.37 | -4,710,416,487.06 | -54% |
| Cardano | 6,808,516,073.92 | 9,335,364,533.50 | 2,526,848,459.58 | 37% |
| NEO | 4,799,427,302.50 | 12,593,957,400.61 | 7,794,530,098.11 | 162% |
| Stellar | 4,480,273,009.02 | 435,870,950.73 | -4,044,402,058.29 | -90% |
| EOS | 5,060,747,304.76 | 6,472,334,213.85 | 1,411,586,909.09 | 28% |
| IOTA | 3,456,292,244.16 | 1,246,505,365.59 | -2,209,786,878.57 | -64% |
With Market Cap (Price multiplied by Circulating Supply), we’d expect the price to somewhat influence the projected value and percentage change. But what is even more interesting is how much changes in price influence the Market Cap.
As you would expect, Bitcoin Cash’s ceiling looks ready to rocket up by more than $20 billion to accommodate an increase in price - as we saw from the previous table. Similarly, NEO’s leap in unit value will be accompanied by the Market Cap expanding by an impressive 162%.
It’s more bad news for both Ethereum founder, Vitalik Buterin and Stellar creator Jed McCaleb though - as Ethereum’s overall cap is projected to plummet by $26 billion to reflect the drop in price, along with Stellar bottoming out with a devastating 90% fall.
Online Popularity: projected change from 11th March 2018 to 6th May 2018
| Cryptocurrency | Historic | Projected | Projected Change | Percentage Change |
| Bitcoin | 20.76 | 39.21 | 18.45 | 89% |
| Ethereum | 17.85 | 43.40 | 25.55 | 143% |
| Ripple | 8.10 | 11.65 | 3.55 | 44% |
| Bitcoin Cash | 1.33 | 4.90 | 3.57 | 268% |
| Litecoin | 6.16 | 10.03 | 3.87 | 63% |
| Cardano | 7.77 | 11.61 | 19.38 | 49% |
| NEO | 38.97 | 75.60 | 36.63 | 94% |
| Stellar | 1.08 | 2.26 | 1.18 | 109% |
| EOS | 36.75 | 35.01 | -1.74 | -5% |
| IOTA | 3.91 | 1.83 | -2.08 | -53% |
It’s not all market based, however. A detailed exploration of Google Trends data makes it possible to assess the Online Popularity of each cryptocurrency.
This time round, NEO has pipped Bitcoin Cash to the post with the highest search volume both historically and projected in the future, topping even the most well known of cryptocurrencies at a predicted 268% interest and suggesting a rapidly growing interest. On the other hand, IOTA has seen the largest percentage drop off, slated to fall by 53% over the next few months - which might be emblematic of the smaller cryptocurrencies catching the eye but then fizzling out shortly after.
Trade Volume: projected change from 11th March 2018 to 6th May 2018
| Cryptocurrency | Historic Volume ($) | Projected Volume ($) | Projected Change ($) | Percentage Change |
| Bitcoin | 5,667,195,738.85 | 7,166,097,605.00 | 1,498,901,866.15 | 26% |
| Ethereum | 1,417,140,960.15 | 1,298,920,128.13 | -118,220,832.02 | -8% |
| Ripple | 388,918,729.64 | 273,003,906.02 | -115,914,823.62 | -30% |
| Bitcoin Cash | 453,314,832.89 | 1,814,956,172.47 | 1,361,641,339.58 | 300% |
| Litecoin | 424,911,348.43 | 346,255,516.29 | -78,655,832.14 | -19% |
| Cardano | 248,373,198.32 | 460,968,025.75 | 212,594,827.43 | 86% |
| NEO | 113,482,544.19 | 752,430,833.70 | 638,948,289.51 | 563% |
| Stellar | 37,025,706.05 | 12,233,157.69 | -24,792,548.36 | -67% |
| EOS | 415,466,617.96 | 839,180,781.11 | 423,714,163.15 | 102% |
| IOTA | 28,132,548.14 | 12,149,569.36 | -15,982,978.78 | -57% |
Finally, Trade Volume projections reveal that Bitcoin (not Bitcoin Cash) is on a path to increase its projected value by a whopping $1.4 billion - the highest of all of the cryptocurrencies.
Though it may not have topped the chart this time round, Bitcoin Cash is still keeping up its high hopes across the board with a promising projection of increasing its volume by more than $1.3 billion by May - a 300% increase. Rounding off the success stories is fan favourites NEO, their trade volume set to soar by a remarkable 563% percentage increase - something we’re sure that the NEO team and potential investors will be thrilled by.
On a less happy note, however, Ethereum still appears set to bomb with a forecasted volume drop of $118 million - the biggest fall of any listed competitor.
More bad news is set for Stellar too, with a -67% percentage drop in trade volume predicted on the horizon. This follows a string of percentage decreases for Stellar. Of course we are speculating, but this could be due to the accessibility of this particular cryptocurrency as it cannot be bought via credit card and can only be obtained through a cryptocurrency exchange - quite a risky move if you ask us!
(Source: Cryptocurrenciesprediction)
Bitcoin will not become the world’s sole currency in 10 years - there will be many successful cryptocurrencies - and Ethereum is likely to take over Bitcoin’s dominant status, affirms the deVere Group.
The comments from Nigel Green, founder and CEO of deVere Group, follows bullish Bitcoin claims from Jack Dorsey, the chief executive of social media giant, Twitter.
In an interview with The Times, Mr Dorsey said: “The world ultimately will have a single currency, the internet will have a single currency. I personally believe that it will be Bitcoin.”
The deVere CEO, who in February launched the deVere Crypto app due to “soaring global demand”, comments: “Unlike Jack Dorsey, I do not believe that Bitcoin will become the world’s sole currency in 10 years.
“The original cryptocurrency is likely to remain the most dominant one in the market for some time, especially with its scalability issues being tackled.
“However, I am confident that there will be many successful cryptocurrencies alongside Bitcoin. This is primarily because they all have different inherent characteristics, strengths and values and, therefore, they are useful in different ways for people and organisations.
“Also, the market itself is set to grow exponentially, resulting in greater usage of and investment in all the major cryptocurrencies. This growth in the market will be driven by many factors. These include that simply an increasing number of individuals, firms and organisations are becoming aware of, have a better understanding of and use cryptocurrencies; and also because financial regulatory bodies around the world are increasingly looking to regulate cryptocurrencies, which will give investors even more protection and confidence in the market.”
Mr Green continues: “Jack Dorsey is, clearly, extremely bullish on Bitcoin, but I believe that its closest rival, Ethereum, could in the near future take over as the world’s biggest and most important cryptocurrency.
“I’m noticing a huge shift towards considering Ethereum as a blockchain [the revolutionary technology that underpins cryptocurrencies] platform rather than just a cryptocurrency.
“Many companies are launching their Initial Coin Offerings (ICOs), which are the cryptocurrency equivalent of IPOs, on Ethereum. In addition, the fact that it uses smart contracts makes it significantly superior to the ‘transaction based’ Bitcoin.”
The deVere CEO concludes: “Whilst I disagree with Mr Dorsey’s claim about the world having one single currency in 10 years and that it will be Bitcoin, it does underscore the growing assertion that digital currencies are here to stay and that the market is growing – despite the best efforts of financial traditionalists.
“There is a huge and growing demand for digital currencies in our increasingly digitalised world.”
With the explosion of cryptocurrencies over recent years, many businesses and start-ups are turning to Initial Coin Offerings, or ICOs, to raise money to get their projects up and running. This week Finance Monthly gets the lowdown on ICO management from Dr. Moritz Kurtz, CEO & Co-Founder of Acorn Collective, clarifying the point, purpose and benefits of launching an ICO.
In an ICO campaign, early backers of the venture buy a percentage of the cryptocurrency, often based on one of the existing public blockchains, in the form of tokens created by the company they are supporting.
An ICO can theoretically be used to fund any project or product in any category, however, before an ICO is launched it needs to clarify:
With so many ICOs in the marketplace you must lay out your concept in detail before launching an ICO. This way contributors can see the utility of your token, and understand what they are buying into. It also makes token holders feel part of the process of creating a new technology, platform or product.
Who should run an ICO?
Whilst any product or project CAN launch an ICO, that does not mean anyone SHOULD. ICO’s have become a popular funding model with start-ups looking to bypass the traditional, and more rigorous, process of gaining funds via venture capital backing.
Although technically an ICO model can be used to fund anything, it is important to consider:
ICO for Crowdfunding
An ICO could be greatly beneficial for the crowdfunding space, as it allows for the following:
Essentially, an ICO can be used to ‘crowdfund crowdfunding’.
How is an ICO mutually beneficial?
Successful ICOs benefit both backers of the venture and those relying on the funds it provides.
The backers can contribute towards a product or project at an early stage, thus benefitting from the increased demand for the token as utility increases. Meanwhile, projects can receive early funding to build their business venture without having to give away equity in the company.
Things to think about
Although launching an ICO can hold great promise for start-ups, it’s not all plain sailing.
Getting the funds can be tricky. When launching an ICO you must generate interest from contributors to encourage them to buy your tokens which, in a crowded marketplace, can be challenging. Not getting enough funds is one of the biggest risks. Not meeting the minimum target means the funds are returned to the token holders and the ICO is deemed as having failed.
An ICO is a great way of raising funding for the right projects in certain industries, but is by no means an easy solution. The ICO world is currently saturated with projects and competition for funding is intense. Making sure you have a viable and sustainable idea that requires blockchain is a good start. From then on, a successful ICO requires all the same focus on marketing and community building as any other form of fundraising.
With the rise of several follow ups to Bitcoin, cryptocurrencies are proliferating at a very serious rate. With ICOs left, right and centre, Bitcoin could soon be facing serious competition; or is the competition already here? Below Richard Tall from DWF explains why Ethereum could be the new kid on the block.
I was helping a client the other day, to identify some of the legal issues surrounding his cryptocurrency trading business. One of my questions to him was which cryptocurrencies he trades in - and he very kindly shared a list of them with me.
It was pretty long.
I have previously made the point that, in the last four years, humankind has invented seven times more "currencies" than the governmental currencies that already existed. The two most famous of these, to those of us not immersed in the market, are Ether - the token associated with Ethereum - and Bitcoin.
Seemingly to most, Bitcoin is a bigger beast than Ethereum. But does the latter present a threat to the former's dominance?
The present state of the cryptocurrency market
As I write this article, the market capitalisation of all cryptocurrencies has taken a hammering as they suffer further setbacks. These range from UK mortgage companies refusing to accept funds generated from cryptocurrencies as deposits for properties, to concerns about further governmental bans in jurisdictions such as South Korea.
All of the major cryptocurrencies have trended in much the same way, albeit they do different things. Ether's market cap today is about $102 billion (slightly larger than Kraft Heinz) and Bitcoin's is about $190 billion (about the same as Citigroup).
In 2017 alone, the value of Ether rose by 13,000 per cent against a somewhat modest showing of 2,000 per cent from Bitcoin. There is little point in trying to ascribe reasons to the differing levels of value increase though, as a market driven by those seeking to get rich quick is no real market at all.
Ethereum's perceived threat to Bitcoin is not a simple comparison of relative worth, then. There are essential differences to what each does and while Bitcoin is currently synonymous with cryptocurrencies in the minds of the public, as the market matures the value of both Bitcoin and Ether will be driven by factors other than the frenzied speculation which currently persists.
Crucial differences between Ethereum and Bitcoin
In reality, Bitcoin and Ethereum are quite different.
Ethereum is a computing platform which provides scripting language for smart contracts. This means that there is a blockchain upon which a number of contracts can be written and which automatically execute on the happening of a set series of events.
As with most blockchains, it is open source, which means that anyone minded to do so can use the Ethereum blockchain to write and implement smart contracts, which are simply a series of promises in digital form. A bit like a contract really, just with the word "smart" added at the front.
Ether is the unit of value deployed on the Ethereum blockchain, and consequently shares certain characteristics with Bitcoin. It is a potential store of value and is fungible between persons who perceive it to have a value.
Bitcoin is ubiquitous. It has become mainstream, can be used as a means of payment in a number of different arenas and is part of common parlance.
Technically, there are no limits to the use of Bitcoin. While it settles in a way different to dollars or pounds, it essentially does the same thing - which is not a lot, really. Money exists and it sits in our bank accounts. It may enable us to do things but in itself it does not undertake any activity.
Ethereum - more than just a cryptocurrency
As we are currently seeing, governments are starting to put restrictions on cryptocurrencies, driven not by a desire to see their citizens exchanging any particular kind of asset for another asset, but because their citizens are speculating on something which their governments perceive they do not understand.
Ether is simply a child of Ethereum. Ethereum is actually a huge computing network which enables anybody to build a decentralized application. A business, if it determined that it needed a blockchain developed solution, could employ a programmer to build that on the Ethereum platform.
Ether, while associated with the Ethereum platform, is capable of performing the same function as Bitcoin. Whether or not it does so is simply a factor of the parties to any transaction determining whether or not Ether has any value to them.
So back to the central question, is Ethereum a threat to Bitcoin? Probably not.
While Ether is clearly a competitor to Bitcoin, bearing in mind that the combined market capitalisation of both is way south of the market capitalisation of some of the world's biggest companies, there is room for both. Ether has the advantage of being associated with Ethereum, and Ethereum does what Bitcoin cannot do, and came to be because of the limitations and single function of Bitcoin.
Mainstream businesses are beginning to embrace Ethereum technology with banks and other entities using Ethereum-led solutions for things such as payment services. The biggest threat to Bitcoin remains Bitcoin itself, with the continuing creep of government regulation and the ongoing tag of financial crime driving market behaviours.
Bitcoin will see-saw in coming weeks but the cryptocurrency mania is set to grow, affirms the CEO of one of the world’s largest independent financial services organisations.
The observations by Nigel Green, founder and chief executive of deVere Group, come after Bitcoin fell by $2,500 last weekend after hitting record highs.
Mr Green comments: “Bitcoin investors have been on a rollercoaster this year. The world’s biggest cryptocurrency soared to a new record of $17,000 on Thursday before nosediving by $2,500 hours later.” Bitcoin has since seen a rise to $18,000 and then $19,000 in the past week, with some dips here and there.
“This correction is an appropriate one after such frenzied trading. We should expect to see Bitcoin see-sawing in coming weeks. Sharp moves are likely, followed by subsequent corrections.
“This is due to the increased interest in this exciting new alternative currency, and especially with the Chicago Board Options Exchange allowing investors to trade Bitcoin futures in the next few days, driving hikes.”
He continues: “Bitcoin’s impressive rally has piqued interest in the phenomenon of cryptocurrencies in recent days and pushed demand further skywards. I believe we will look back on this point as the start of digital currencies becoming mainstream. They can no longer be dismissed as a fad or fraud. Of course, Bitcoin and other cryptocurrencies will rise and fall – but all traditional currencies do the same.
“As they become ever-more established, cryptocurrencies will gain in popularity and the growing cryptocurrency mania will likely result in the launch of more and more digital currencies to meet demand.”
In a statement on a few weeks back, Mr Green also urged caution. He said: “Bitcoin remains a major gamble as it is very much an ‘unchartered waters’ asset – we’ve simply not experienced this before. Also, an asset that goes almost vertically up should typically raise alarm bells for investors. In addition, many would argue that there’s limited underlying economic value.”
The deVere CEO concluded: “Today’s digital world needs cryptocurrencies. One or two of the existing ones will succeed, whether it’s Bitcoin or not remains to be seen. But the dawn of the financial technology era has arrived.”
(Source: deVere Group)
