Warning: Cryptos will die but not before spiking by 200% end 2018
There are reasons why some people think crypto coins will one day not even be worth pocket change.
The date of when that day arrives is anyone’s guess, but a recent survey showed that by end 2018, some people will be jumping from joy.
What did the survey reveal?
100%-200% + price growth
Consumer product and services comparison website Finder conducted a survey of nine blockchain industry participants in relation to the price trend for the world’s top 12 cryptocurrencies.
It found that ethereum will see the biggest increase in market cap, at 212%, followed by bitcoin at 194%, and bitcoin cash at 123%, as reported by the South China Morning Post.
“In terms of price prediction, ethereum will however rank third, at $2,550 (From $820 range today), by end of this year; while bitcoin and bitcoin cash are forecast to trade at $29,533 (From $9,900 today) and $2,721 (From $1100 today) respectively, taking the top two spots,” reported the daily.
“The predictions were based on their price levels seen on February 27, which were recorded at $873, $10,388 and $1,258 respectively.”
Market capitalisation is calculated by multiplying the number of coins expected to be in circulation by the coin’s value.
How do we stand today?
CNBC reported that Bitcoin fell Wednesday, dropping below the key $10,000 level after the Securities and Exchange Commission (SEC) said it will require digital asset exchanges to register with the agency.
“The largest cryptocurrency by market capitalization dropped nearly 10% on Coinbase in a sudden move after the SEC statement stoked fears that tightening regulation could restrict future trading,” said CNBC.
“Bitcoin fell to near $9,500 but had recovered slightly to $9,969 as of 5:08 p.m. ET.”
According to the SEC statement:
” The SEC staff has concerns that many online trading platforms appear to investors as SEC-registered and regulated marketplaces when they are not. Many platforms refer to themselves as “exchanges,” which can give the misimpression to investors that they are regulated or meet the regulatory standards of a national securities exchange.”
Bitcoin is still worth half what it paid last December when it neared $20,000 levels.
Its price has since suffered stumbling from crackdowns on crypto exchanges, digital thefts, and reputational risks that deals were made to launder money more than anything else.
7 reasons why Cryptos will RIP
In a contribution to Kiplinger, a Washington-based publisher of business forecasts Steven Goldberg, US investment advisor said there are several reasons why Bitcoin and the more-than-1,500 other cryptocurrencies are doomed.
“These are a bubble — in fact, one of the largest bubbles in human history. I am as sure as I can be of anything that they will get clobbered, and that all but the earliest buyers will lose a ton of money. Those who hold their cryptocurrencies likely will lose every penny they invested,” he said.
He gave 7 reasons I think cryptocurrencies will go to zero:
1-It’s a bad idea. Who needs such a currency? Criminals, yes. Terrorists, yes. Anyone else who wants to keep their affairs invisible to prying outside eyes — whether law enforcement, intelligence agencies, or a spouse in a contested divorce. That’s a very limited universe, and it’s not inhabited by the most honest of us. Big investors seeking to build a big position in a security have plenty of other tools.
2- It’s much too volatile. A currency is supposed to be a medium of exchange, not, primarily, an investment. Yes, currencies change in value, but nothing like Bitcoin, which rose from virtually nothing several years ago to above $19,000, then plunged to just under $7,600 before recently rebounding a bit. Why would anyone use an instrument that volatile to buy or sell anything?
3-They have no real value. Cryptocurrencies are fundamentally a speculation — people are buying hoping to sell later at a much higher price. This is very close to a ponzi scheme: The early investors walk away with handsome profits, especially those who initially sell cryptocurrencies in initial coin offerings (ICOs). But the currencies themselves have no fundamental value, no economic worth, no intrinsic value. They pay no dividends, they earn no profits
“The fundamental value of Bitcoin is zero,” says Nouriel Roubini, an economist who predicted the 2007-2009 financial crash.
4- They’re a commodity. Anyone with the right computer skills — and enough cheap electrical power to produce the code and complex puzzles needed to launch a cryptocurrency — can do it.
The fact that there are 1,300 cryptocurrencies is more than sufficient proof that these are not a scarce item. A commodity that’s easy to re-invent is worth little, if anything.
5- It’s a bubble.
Remember the tech bubble of the late 1990s? For every Amazon, there were hundreds of companies like, Pets.com, Broadband Sports, eToys.com, Excite and theGlobe.com. There was even, get this, a digital currency, Flooz.com, which boasted Whoopi Goldberg as its spokesperson. Never heard of these? They all popped.
Don’t take my word for it. “Remember, cryptocurrencies are still a new and hyper volatile asset class, and could drop to near zero at any time,” said Vitalik Buterin, founder of the Ethereum blockchain network. “Don’t put in more money than you can afford to lose.”
6- They are unregulated. Regulators are clamping down. Governments haven’t known what to do about cryptocurrencies. The currencies span the globe, making it difficult for any country to stop them. The lack of regulation has led to increased fraud in the crypto-markets.
7- What about blockchain? Think of blockchain as a financial version of Twitter that records every transaction indelibly on thousands and thousands of computers
There’s little indication that any of the startups, using cryptocurrencies or not, will ultimately prosper from blockchain. More likely, they’ll disappear like all those fledgling computer companies in the 1980s.