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Bitcoin [BTC] could not have gone from $0 to what it is today without bubbles, says Shapeshift CEO

Akash Anand

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Bitcoin [BTC] could not have gone from $0 to what it is today without bubbles, says Shapeshift CEO
Source: Pixabay

Bitcoin’s [BTC] unprecedented rise in 2019 caused the entire cryptoverse to erupt in joy, with many claiming that the bear market was finally over. Many popular proponents in the space have also come forward to state that the world’s largest cryptocurrency’s fortunes are beneficial to the entire industry as a whole.

In a recent interview with Bloomberg, Eric Voorhees, Chief Executive Officer of Shapeshift, spoke about the bull run as well as the bubbles Bitcoin has gone through. He stated that Bitcoin’s movements are all cyclic and claimed that these troughs and crests will be prevalent in a speculative asset. In his words,



“Four or five of these bubbles are always present in the market and they are clearly cyclic. Many people in the space wait till the bear market is done or at least for it to show signs before starting to invest. Bitcoin itself went through multiple bubbles in the past but that’s okay as long as the use cases are clear.”

Voorhees further added that only the first ten or twenty cryptocurrencies on the charts actually mattered since the rest of the coins didn’t move the market. The CEO was asked whether the bubbles exhibited a pattern, to which he replied that the signs pointed towards BTC taking over the world. According to him,

“There is no way an asset can go from zero dollars to a billion dollar asset without price bubbles. That’s just the fact. The speculative nature will continue as long as people don’t use it for actual purposes.”

Eric Voorhees was also in the news recently after he stated that BTC cannot rise steadily over the years as adoption advances. He had tweeted,

“An asset like Bitcoin cannot rise steadily over the years as adoption advances. For upon seeing an asset rise by, say, 5% per month for XX months, rational actors will front run that growth, causing inevitable bubble and burst. There is no other way.”





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Bitcoin’s Lightning Network loses spark as network stats start to slouch

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Bitcoin's Lightning Network loses spark as network stats start to slouch
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Bitcoin’s Lightning Network designed to free up Bitcoin’s on-chain congestion and improve its scalability seems to have lost its mojo as the network capacity, among others, have started declining for over a month.

The network capacity for Lightning Network, at press time, was 1020 BTC, which is worth $8.1 million. Over the course of a month, this has decreased by approximately 4%.

Source: 1ML

A similar trend of decline can be observed in the number of active channels on the network. It decreased by 5.4% over the month and was at approximately 36,592 channels, at press time. The number of new nodes in the last 24 hours has also declined by 15% and the current number of new nodes were at 17.

However, the number of active channels at press time increased by 1.35% in the last month and was currently at 4294 active channels. The fall in the activity of Lightning Network is noteworthy because the last few weeks have been rough as the on-chain fees for Bitcoin has reached somewhere between $3 and $4. Moreover, the number of unconfirmed transaction has been increasing simultaneously, increasing the mempool size of Bitcoin.



One can only imagine what would happen if the bull run actually begins and the price of Bitcoin skyrockets leading to similar, if not worse, situations as it did during December 2017.

A Reddit user Henry Cashlitt, commented:

“People don’t want to use LN when tx fees are high because it costs too much to open a channel. People don’t want to use LN when tx fees are low because then they can just send transactions cheaply directly on-chain.”





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