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The Cryptocurrency Industry is 'On the Brink of an Implosion', Research Says (bloomberg.com)
Echoing sentiments of mainstream economists, Juniper Research is warning that many of the metrics in the cryptocurrency world are pointing to a market implosion. From a report: Industry bellwether Bitcoin had seen its daily transaction volumes fall from an average of around 360,000 a day in late 2017 to just 230,000 in September 2018. Meanwhile, daily transaction values were down from more than $3.7 billion to less than $670 million in the same period, Juniper said in the study, The Future of Cryptocurrency: Bitcoin & Altcoin Trends & Challenges 2018-2023. The market as a whole has contracted quickly as well. In the first quarter, cryptocurrency transactions totaled just over $1.4 trillion, compared with less than $1.7 trillion for 2017 as a whole, Juniper said. However, by the second quarter, transaction values had plummeted by 75 percent, with total market capitalization falling to just under $355 billion. "Based on activity during the first half of Q3, Juniper estimates a further 47 percent quarter-on-quarter drop in transaction values in that quarter," the researcher said in an accompanying white paper.
Let me start playing the worlds smallest violin.
This is gonna be all kinds of funny!
When the real question should be how many coins are moving around.
> daily transaction values were down from more than $3.7 billion to less than $670 million in the same period
Yeah, that's what happens when the base value drops, but does that mean 10k less bitcoin were moved, or the USD value just dropped?
This constant pissing contest against fiat needs to end. It conflates the performance of the asset.
Good thing Tulips and Beanie Babys are safe investments....
I know it's an overused saying but it applies perfectly here.
Seriously, governments should make it illegal to blatantly waste electricity. People cry about net neutrality, but electricity neutrality should be discussed too. In any other industry, wasting resources for no reason but to print electronic tokens would be cracked down on. It's is coming up to the 10th anniversary of the bailouts of the financial crisis that was caused by funny money mortgages, we need to arrest the designers of asics for environmental terrorism. I hope 100 years from now when our great grandchildren have to suffer in a climate changed world to ask that why didn't our generation stop the bitminers.
5+ years ago I looked at starting to run servers and taking bitcoin in my business but even then it seemed like the train had already left the station. I decided to just stick with my market trading accounts.So that is the direction I stuck with. I just wish online trading accounts were around when I was young. Back then you had to deal through a broker. ;) Lets see how all this works out.
;)
Now I am with the get your popcorn ready crowd. And how about yesterdays regular market drop! Not even talking about bitcoin
Just my 2 cents
Is my Dogecoin doing OK???
Let me start with, crypto as an investment is stupid. But, it really is too bad if it fails. It would be nice to have a replacement for cash that has a similar anonymity to cash.
Look, I'm not looking to do anything illegal or illicit but the situation of today where Visa could conceivably sell my purchase history to Google who would then target advertising to me or be able to provide the number of Snickers bars I ate this past year to health care or insurance providers doesn't sit particularly well with me either. So being able to purchase some groceries, clothes, etc through electronic means but in an anonymous fashion has a certain draw for me.
Looks like it's in the MIDDLE of an implosion to me. The sooner it's completely gone, the better. What an utter waste of resources it's been.
There might be bags of good used video cards tossed after this all goes bust.
That sounds like it passed the "brink of an implosion" about 65 percent ago.
You are welcome on my lawn.
Maybe all those obnoxious "Youtube economists" will crawl back to their mom's basements...
So some folks with more dollars than sense dumped a bunch of money into the cryptocurrency market trying to make a quick buck. Some won, some lost. It's been long accepted that most of the alt-coins available today will eventually disappear, leaving only the strongest and most useful cryptocurrencies. Speculation is what drove the market up to unsustainable levels. I believe it has come back down where it belongs, if not a bit lower, against the U.S. Dollar. But remember, we're talking about currencies, not stocks. People need to get out of the investment mentality and see the technology for what it is: Digital CASH. Blockchain will never die. Cryptocurrency as a whole will never fail. The genie is already out of the bottle. It just might take a little time for people to change their mentality about it.
Lets compare a real currency, with a cryptocurrency:
1: A government can print all they want for a real currency. A cryptocurrency like Bitcoin only has "x" amount of currency, and only will get less. This makes your stake in the currency more valuable as time progresses, no matter how much is mined.
2: Cryptocurrencies are a secure means of exchange. Once the transaction hits the blockchain and is verified, it is done. No chargebacks, no counterfeit paper money, no bounced checks. You get paid and stay paid.
3: Cryptocurrencies are far better for ensuring transactions happen. I set up a multisig transaction with an escrow agent and the person I am buying from. The other party ships me a widget. I check if the widget is OK, say all is good, escrow agent allows the transaction to go through. Everyone is happy. Yes, the escrow agent could collude with one of the other side, but that is a lot less of an issue than the massive fraud committed today in general.
4: Cryptocurrencies can be stored securely. Even if a place gets raided, the wallet will be secure. I can add other mechanisms as well, such as paper wallets, x out of y key retrieval, and even duress codes which can lock a wallet for a certain amount of time.
5: Cryptocurrencies only get more useful as time progresses. Bitcoin's price has stabilized, and in a few years, will be the gold standard for long term currency saving, and unlike the dollar, it is immune to inflation.
Someone show me the disadvantage of cryptocurrencies, other than that clueless people fail to understand them?
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A lot of the people who invest in crypto currencies are almost as retarded as those that are anti-crypto. There are few real transactions in the crypto world that aren't people just trading back and forth. Crypto currencies have a lot of promise- but the valuation is utterly ridicules given where things stand. Crypto currencies are probably overvalued right now in raw dollars by a factor of ten. However at the same time the future looks bright if you aren't looking at it from an investor stand point. We're seeing more and more businesses adopting it offline in the places that it really matters: New Hampshire and Venezuela. Nowhere else matters because the population of users are too scattered for it to take off. In New Hampshire there is demand because of the migration of libertarians and the Free State Project. There is marketing, promotion, and usage by others because of that. Everywhere else people aren't using it. They are "investing" in it and artificially inflating the value.
If you want the benefits of crypto currencies and the development to continue you should be looking at New Hampshire as a guide. What is happening in New Hampshire you probably won't see in most other regions for another 10-20 years (at least successful adoption where people can actually utilize it reliably at the local level around town). It took credit cards 40 years to see widespread adoption and it started similarly. Hotels and restaurants that catered to a particular market: traveling salesmen.
would have you believe. When it proved to be beyond big businesses ability to control the only thought that occurred to them was that they be destroyed. They can't have a means of monetary movement or compensation beyond their grasp and control. Crypto currency will be valuable for brief quick transfers and compensation, but probably never stable enough for big business to feel comfortable dumping funds into and wholesale raping, but it could always be a quick and dirty way to transfer/launder money with big brother getting involved.
errr....umm...*whooosh* *whoosh* Is this thing on ?
Crypto will never "implode". The people that have yet to understand the real world uses (and downright needs) that crypto provides, probably never will because they are just too ignorant. Now, as long as these currencies have real world uses, they have real world value. Even if the price of bitcoin fell to around $100 again, it would still be used and inherently have some value. It's even possible that bitcoin gets abandoned for the most part because, let's be honest, it is a very heavy, poorly made currency. However, it did kick everything off and now we have thousands of different currencies, one of which would simply replace bitcoin as the most commonly traded coin. Crypto as a whole is here to stay whether you like it or not and it will continue to evolve long into the future.
Who actually uses crypto to make everyday purchases such as toilet paper, food, gasoline, etc., not just for impulse buying Lamborghinis or South Bay real estate. Imho, it's not really a "currency" unless it fulfills the same role as cash, not just in theory, but also in practice.
How many delicious 16 oz. steaks have been wasted on crypto-mining?
For all intensive purposes, "whom" is no longer a word. That begs the question, "who cares"?
Maybe now I can afford a new graphics card for my gaming PC!
You're messin' with my Zen Thing, man.....
They talk about the market imploding and correcting itself as though that's a bad thing. This happens with Bitcoin every couple of years. The system and the market always comes out stronger at the end of the cycle. This isn't news.
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Replace fiat with crypto and you have an accurate assessment of our current financial situation.
I'm paying for the electricity. Who are you to tell me what I can do with it?
Only the State obtains its revenue by coercion. - Murray Rothbard
that's about it.
Now that we've got credit card processors and PayPal banning Americans for not subscribing to management's ideology it's pretty clear to me that cryptocurrency has a perfectly legal and attractive use case. Adoption is the thing that fueled growth, historically. The media can hype BTC up to 20k and the media can FUD it back down to 2k, no one is denying this, but saying it's dead? How many articles were written declaring PC gaming and/or console gaming dead?
It's backed by hope. That's it. It's bound to implode. I told people at work (all the young guys) that it will be worthless in 10 years and no one will be talking about it. We're on like year 3.
unless the major gov'ts legalize drugs and crack down on the money laundering. Until then it's got a floor from the utility of using it to buy illegal services.
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they know where you shop but not what you bought. Since most Snickers bars (and junk food in general) are bought at grocery & convenience stores that information isn't terribly useful. Retailers know better than to give up that data to anyone, let alone payment companies.
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One of the more recent interesting episodes in cryptocurrency was ethereum nearly falling over due to the mass volume of transactions ramping up due to, cryptokitties, a trading card game. The devs worked like mad to up the transaction processing rate, and made a number of big advances in blockchain processing. I suppose one could call it the necessity of the situation, but it could also be said that to be a via ecosystem, the platform has to perform.
So, now crypko.ai will be launching (WITHOUT an ICO) shortly. Why is this big? Because this unlocks a new, hardcore subgroup of users who will throw money/resources at ethereum and overload it. We are talking hardcore otaku guys who are obsessive collectors, desperately trying to collect anime character cards, and spending god knows how much money. Look at how much money those anthropomorphic ship character card collector games make right now. When they start pumping that into ethereum, you will see a trigger sparking even more new development.
Free State Project = "Let's all move someplace small where we can easily outnumber the locals and take over." Fuck yourself.
Bitcoin (BTC) is dying because BlockSteam/Core failed to scale it. However, adaptation of e.g. Bitcoin (BCH) has been growing nicely because instead of the stupid "store of value" narrative Bitcoin (BCH) developers wisely decided to scale on-chain..
It is official; Netcraft now confirms: *BTC is dying
One more crippling bombshell hit the already beleaguered *BTC community when IDC confirmed that *BTC market share has dropped yet again, now down to less than a fraction of 1 percent of all servers. Coming close on the heels of a recent Netcraft survey which plainly states that *BTC has lost more market share, this news serves to reinforce what we've known all along. *BTC is collapsing in complete disarray, as fittingly exemplified by failing dead last in the recent Sys Admin comprehensive networking test.
You don't need to be a Kreskin to predict *BTC's future. The hand writing is on the wall: *BTC faces a bleak future. In fact there won't be any future at all for *BTC because *BTC is dying. Things are looking very bad for *BTC. As many of us are already aware, *BTC continues to lose market share. Red ink flows like a river of blood...
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The price and volume is lower than what it was on an all time high... You don't say. It's an all time high... It's in the name.
Are the price an volume smaller than they were before the surge? Nope.
There's little in the way of gold-denominated transaction either, outside of selling back and forth. Not sure if your intention was to liken Bitcoin to the best solid investment of the last 2,000 years...
'Echoing sentiments of mainstream economists'
Everyone does know there are vested interests in CAUSING an implosion, yes?
This is the exact kind of news developed to do that.
I can understand people who want/hold silver and gold
I cannot understand people who want government backed bills and assume they know nothing about the situation
Wow, since 2012 I've heard this roughly 1337 times. It must be true this time......
At least it's fun watching the show.
About a year, year and a half ago one of the young guys at work asked me what video card I'd recommend for a PC he wanted to build. So naturally I asked him what games he wanted to play and what they required. After the best deer-in-headlights look ever, he explained that his goal was to build a "profitable mining rig".
For a few futile minutes I tried to explain about speculation bubbles, but he just wanted to get rich dammit so tell him the right answer already. I had no idea so in the end just told him to buy whatever was the newest that other "miners" thought was good, and keep in mind plan B will most likely be to just enjoy playing games on it. Then he sold me his 2 month old card for half price because he was disgusted with how much he spent and just wasn't making as much money as youtube told him he should be getting...
As best I can recall: housing, dot-com, s&l, tulips... I'm sure there's more of the same periodically littering the history books. Oddly enough, "if it sounds too good to be true...", is actually pretty good advice.