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Ethereum Classic [ETC] Summit: “Cryptocurrencies will join the likes of Google and Amazon”

Akash Anand

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Ethereum Classic [ETC] Summit: "Cryptocurrencies will join the likes of Google and Amazon"
Source: Unsplash

Day two of the ETC Summit kicked off with Tom Lee of Fundstrat speaking about the first time he really got into Bitcoin [BTC] and how the sheer economics of cryptocurrencies opened up a vista of avenues for him.

Lee, who was part of the discussion panel spread over both days of the conference, talked about the similarities between cryptocurrencies and traditional financial tools such as bonds and equities. It was pointed out to the audience that in both cases the branding has been correct with another similar tangent being the amount of time it took for people to grasp some details about both commodities.

The financial expert also spoke about how the cryptocurrency asset itself was something that needs to be used, unlike the traditional commodities that needed fringes like receipts and bills. The discussion then moved on to price after a tumultuous couple of weeks that saw the price of cryptocurrencies take a massive fall. Tom stated:

“Unlike other markets, the price variations in crypto are so different. It is very surprising to see. Because there is no fundamental value, that includes pay dividends, the price momentum plays a much bigger role unlike the traditional financial world.”

The financial analyst was confident in saying that the products and services in the cryptocurrency industry are undergoing leaps and bounds of developments and in a few years they too will come close to the standards of stocks and bonds.

Continuing on the price run, Lee went on to say that in cryptocurrency, the retail investors make up almost 90-95% of the total investments, making institutional investors into a niche. This, he said, was a huge disparity with the traditional financial market where the institutional investors played a much bigger role.

Tom Lee was also asked about his theory of connecting the Metcalfe’s law with the cryptocurrency industry. He said:

“So, the Metcalfe’s law basically states that the effect of a telecommunications network is proportional to the square of the number of connected users of the system. This idea that the value is not a linear function but rather a log function is something that is arbitrary to Bitcoin and its community. The users drive up the value and sometimes in terms of many multiples.”

The panelist also responded to some common questions that abound in the cryptosphere. Lee further gave his insight on the long-term holding of cryptocurrencies as well as short term. He stated that long-term players in the space hold onto cryptocurrencies for a long time and conduct a sell-off at a peak whereas short sellers look to make a quick profit and get out. It was also pointed out that on some trading platforms the trading market cap difference between Ethereum [ETH] and Ethereum Classic [ETC] was almost exactly the same as the total market cap difference, something that came as a surprise to many.

Lee then went on to speak about what lies in the future for Bitcoin and the cryptocurrency industry in general. He stated that the technology is there for everyone to use and that sometimes the rise and fall can be confusing citing examples of the astronomical shoot up of Dogecoin [DOGE] while other coins were crashing. According to him, the recent crash has actually shown that 2017’s hype was misplaced and that there is a need to cleanse the ecosystem.

He further added that the need of the hour is to implement new technologies like smart contracts that will actually drive the market and further the cause of the cryptocurrency industry. He elucidated on the FANG [Facebook, Amazon, Netflix, Google], an elite club that drives the technological space and said that in the future cryptocurrencies will become part of the FANG club.





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Bitcoin

Fall in Bitcoin’s market dominance may be correlated to the fortunes of the altcoin market

Biraajmaan Tamuly

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Will Bitcoin's Dominance falter for Altcoins to gain traction in the market?
Source: Pixabay

The trends set by virtual assets have always highlighted the cryptocurrency market’s inherent volatility and spontaneity. Prices lack symmetry and rarely exhibit consistent growth as different factors come into play to dictate an asset’s valuation.

At press time, the world’s largest crypto, Bitcoin, had stormed past the $11,000 mark and was consolidating to push for a surge over $12,000. The rest of the altcoin market however, apart from one or two minor hikes here and there, has been relatively quiet after collectively surging in the early part of the year.

At the beginning of 2019, a significant number of crypto-assets performed significantly well in a group, wherein most assets demonstrated a prominent hike in their values with little to minor price corrections.

A majority of tokens doubled their valuation until Bitcoin breached the $6,600 resistance. Subsequently, altcoins failed to keep pace as Bitcoin continued to test more resistance limits in the market.

Source: Twitter

At present time, Bitcoin enjoyed an unprecedented 62 percent dominance in the cryptocurrency market. As its dominance primes itself to climb over the 63 percent mark, many in the community speculate this could be red flags for the altcoin market.

Major cryptocurrency enthusiasts and analysts have stated that altcoins could significantly capitulate if it so happens. However, past events offer a sliver of hope for the altcoin market.

According to CoinMarketCap, the altcoin market has been significantly affected whenever BTC’s dominance has fallen. During the bull run of 2017, Bitcoin enjoyed a dominance of 65 percent and the global market cap hit a value of $402 billion. However, in January 2018, when BTC dominance plummeted, the global market cap peaked at around $710 billion. The dominance was down by half, whereas the global market cap had almost doubled.

A major reason for the same was money funneling into other altcoins after witnessing a shift in momentum from Bitcoin to the rest of the crypto-market. The present market situation may take a similar path once BTC’s dominance falls, opening the door for other virtual assets to take advantage of the scenario.

However, the present rise of BTC is backed by much more certainty than the bull run of 2017. Hence, a repeat of the January 2018 period may be unlikely, and will happen if and only the market sentiment shifts gears drastically towards altcoins.





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