The Morning Bitcoin Report
The cryptocurrency market was growing on Wednesday, with bitcoin trading above $11,000. All digital currencies from Coinmarketcap’s top 20, and 87 out of the top 100, were gaining after two days of losses.
Bitcoin and other cryptocurrencies have fallen as much as 50 percent this year, as investors were scared off by news of crackdowns in China and South Korea. Some analysts say investors just wanted to cash in after prices soared due to the mainstream success of cryptocurrencies.
As long as people perceive bitcoin as digital gold, its price will go up, Universa CEO Alexander Borodich says. According to him, many countries would like to have their own centralized, official cryptocurrencies.
Banks have admitted that blockchain can improve the efficiency of clearing and settlement, make cross-border payments faster and cheaper, significantly cut red tape and modernize customer identification systems.
According to Chiavarone, the cryptocurrency market is dominated by greed, and it is the first sign of greed since the economic crisis of 2008, dubbed the ‘Great Recession.’
“Investors wanted to be on the roller coaster in the ‘90s. They wanted high returns. They didn’t mind volatility,” Chiavarone said.
“The Great Recession put the fear in a lot of folks and they wanted to go on the merry-go-round. Folks really want to get on that risk trade.”
Last year 19 Bitcoin forks came out, but up to 50 more could occur this year.
And in reality, the number could run even higher now that Forkgen, a site enabling anyone with rudimentary programming skills to launch a clone, is in operation.
The reasons behind the actions vary.
Some backers try to improve on Bitcoin, others a quick profit.
Developers typically score a cache of newly minted coins in a process called post-mining, but the prices do not always hold up, as many of them are a ‘money grab.’
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Talking to RT on the sidelines of the Davos Economic Forum, Borodich said governments will definitely regulate cryptocurrencies. “From my perspective, they will offer state country-wide cryptocurrencies like crypto-ruble or crypto-barrel if they like to… back the oil they have or other natural resources.”
He added that we “will definitely see in 2018 the first signs of such national cryptocurrencies as an opposite to bitcoin.”
Discussing blockchain, Borodich, whose company is working with the technology, said everyone could use it in everyday life.
“Blockchain is a very low-level technology which will support next technological wave; change the world from centralization to decentralization; help to share information with others in very secure and protected way.”
The expert compared blockchain with the internet of 1994, when the browser was created. Today, the browser is the way we actually perceive the internet as a service. We don’t currently have such a browser for blockchain, he explained.
“So, blockchain is mostly for geeks, for those who do understand all those difficulties. I think, this year we will see first applications which will make blockchain way easier for us as normal people to use it,” he said.