Ethereum vs. Cardano – Two Popular Cryptos, Two Dominant DApp Platforms

Ethereum vs Cardano

Ethereum and Cardano are two of blockchain’s most recognizable decentralized application (DApp) platforms. Often part of the same conversation, both projects utilize smart contracts to expand the value of blockchain technology beyond simple transactions – albeit in vastly different ways.

Founders from both projects, Vitalik Buterin of Ethereum and Charles Hoskinson of Cardano, make their opinions well-known and have active Twitter lifestyles. If you’ve been involved with cryptocurrency for any amount of time, you’ve probably heard about either founder at least once.

Less well known, though, is the shared history of these two projects. Before we examine the similarities and differences of the cryptocurrencies, let’s take a walk down memory lane to where they both began.

Ethereum vs Cardano – A Chance Encounter

Buterin and Hoskinson met through the Bitcoin Education Project, a creator of online Udemy courses that Hoskinson started after leaving a career in consulting. After meeting, Hoskinson received one of Buterin’s first Ethereum white paper drafts, which actually began as an outline for a Primecoin overlay protocol. From there, Hoskinson joined Ethereum as co-founder along with Buterin and six other individuals.

Hoskinson and Buterin worked together for about six months before parting ways.

A Difference of Opinion

The split really came down to one ideological difference: for-profit or non-profit. Buterin and the majority of the other founders argued that Ethereum should remain a non-profit project avoiding venture capital fundraising. Hoskinson thought otherwise.

He believed that they should accept venture capital money. However, with that, the team would need to implement some type of governance and figure out a road to profitability. As you now know, the team opted for the non-profit status.

Six months after leaving, Hoskinson partnered up with another Ethereum co-founder, Jeremy Wood, to form IOHK (Input Output Hong Kong), the company behind Cardano.

Ethereum vs. Cardano – Differences

At their core, both projects are meant for DApp development and smart contracts. However, the similarities end there. From consensus mechanisms to architecture, the two blockchains differ significantly.

Consensus Mechanisms

Right now, Ethereum uses Proof-of-Work (PoW) to maintain the network. This won’t last forever, though. The Ethereum community is planning to switch to Proof-of-Stake (PoS) sometime soon. Casper, Ethereum’s new PoS algorithm, is an attempt to solve many of the scaling issues that plague the blockchain.

Cardano also implements Proof-of-Stake but utilizes the Ouroboros algorithm. It works like this:

  • Slot leaders verify transactions and create blocks.
  • If you hold Cardano’s coin, ADA, you qualify to become a slot leader. It doesn’t matter how much you own.
  • To become a slot leader, the “Follow the Satoshi” algorithm needs to select a coin you own.
  • The network does all of this manually, so there’s no additional work that you need to perform.
Programming Languages

Ethereum’s primary programming language is Solidity. The Ethereum team created Solidity specifically to build smart contracts that run on the Ethereum Virtual Machine (EVM).

Cardano, on the hand, utilizes Haskell and Plutus. Haskell is a functional programming language that’s been around since 1990. But the most recent stable release launched in 2010. Similar to Haskell, Plutus is a functional programming language; however, it was created in-house by the Cardano development team.

Architecture

Probably the most significant way the two smart contract platforms differ is in their architecture.

Cardano is split into two layers. The layers separate the account value ledger from the reasons why value transfers from one account to the other. This separation gives you, as the end-user, more control over the privacy and execution of your smart contracts.

The Cardano Settlement Layer (CSL) takes care of the value ledger while the Cardano Computation Layer (CCL) handles the “why” of transactions.

Currently, Ethereum only has one layer. But, second layer scaling solutions are in the works. Plasma is one of those solutions. Plasma contains child blockchains similar to Bitcoin’s Lightning Network. These child chains facilitate transactions without having to take up bandwidth on the main Ethereum chain.

Ethereum will soon implement sharding as well to help with the blockchain’s scalability issues.

Other

Besides the obvious differences in market cap and price, the two cryptocurrencies have some less critical differences.

Ethereum has an over three-year head start on Cardano. The project launched in January 2014 whereas Cardano only recently came onto the scene in September 2017.

Cardano has one of the largest coin supply’s in the industry with a maximum supply of 45 billion. Ethereum doesn’t have a maximum token amount, but the circulating supply at time of writing is just over 100 million.

Ethereum vs Cardano – Communities

As of now, Ethereum has one of the largest and most active (if not the largest and most active) developer communities in crypto. It’s the top choice for initial coin offerings (ICOs) and many of the tokens that you know and love run on the Ethereum network. As long as Ethereum maintains this popularity, the price should continue to rise.

Cardano may not have the support that Ethereum does, but it still has a healthy community nonetheless. The real test will come when Cardano is ready for DApp development. The long-awaited release could bring the adoption that Cardano needs to get its price moving positively.

Ethereum vs. Cardano – What’s Next?

Both platforms have active development teams with jam-packed roadmaps ahead. Ethereum is working to become a more scalable DApp platform through the implementation of Casper (PoS), Plasma, and sharding. Cardano will soon be releasing Shelley, an update that includes human-friendly addresses, open Ouroboros delegation, and multisig transactions among other things.

It may be cliché, but comparing these two projects really is like comparing apples to oranges. Both are fruits (DApp platforms) with their own sets of pros and cons. Some community members prefer one over the other while others like them both. And, some people would prefer both fail.

In the end, Ethereum and Cardano are both respectable projects that should make a significant impact on the world.


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Author: Steven Buchko
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Novogratz believes 2019 a good year for crypto, despite losing $136M in 2018

Billionaire and veteran investor, Mike Novogratz shares his stance and outlook on cryptocurrency in the coming years.

Despite his investment company, Galaxy Digital’s loss of $136 million throughout 2018 due to crypto’s ongoing bearish market, Novogratz still has faith in crypto, saying, “I fundamentally think you’re going to see big adaption in 2019, 2020.”

Although, he admitted that the current outlook of the crypto market is not promising when he said, “It’s been a horrible bear market in tokens. There’s plenty of reason to be depressed.”

He pointed several crucial events that might have bolstered the downturn of the cryptocurrency, such as the Securities and Exchanges Commission (SEC)’s rejections towards Bitcoin ETF as well as their “stricter actions” against few fraudulent ICOs.

According to him, these has somehow introduced uncertainty to the market, which led to the most recent selloff.

“Part of the sell-off is because, I think, the SEC got tough on a few fraudulent ICOs. And not just were tough on them — they mentioned personal investors can go for reparations in most cases. And people got very nervous,” he said in a conference call with Ethereum World News.

However, the former Goldman Sachs’ partner is convinced that moving forward, the relationship between the SEC and cryptocurrency will get better, which he claimed as “a driving force for new growth” that will pave the regulatory path for larger investors seeking to join the crypto market.

Moreover, he also believes that the integration of blockchain in the e-gaming space cryptocurrency would be one of the things that will “save” cryptocurrency’s fate in the future.

Quoting what he said, “Lots of the items in the digital world, the e-gaming space, are low value items so I think people will be more comfortable participating in blockchain. We’re making big investments in that area.”


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Author: FIFI ARISANDI
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This is how and why Ripple’s XRP tokens will be used by the banks

The controversy around Ripple and their centralization, premined coins and influence of banks aside, Ripple Labs is all about improving the speed and cost of cross-border payments.

It seems that Ripple’s broader XRP strategy is to generate demand for rapid settlement. Ripple is positioning XRP as the rapid settlement technology to go with those rapid payment systems. All of their payment technology is designed to settle with XRP.

The beginner Ripple product gets banks’ feet wet – with xCurrent and xVia where they don’t have to use XRP. Once there it is easy to gravitate to the next gear, the next product – xRapid. Like an extra gear on the car you already know. It is inevitable.

xRapid is the only Ripple product that uses XRP. Other offerings such as xVia and xCurrent are systems that currently do not require/utilize XRP.

In other words, if the 100 banks you have signed up have no interest in xRapid, there will be no change to the price of XRP.

With xRapid Ripple aims to eliminate delays in global payments while also dramatically lowering cost. xRapid leverages the technology behind the digital asset XRP, to make cross-border payments truly instant.

Some aggregated results from several pilots of xRapid indicate this Ripple net has a bright future ahead to the joy of XRP holders.

For payments in the critical remittance corridor between the U.S. and Mexico, financial institutions using xRapid saw a savings of 40-70 percent compared to what they normally pay foreign exchange brokers. An average xRapid payment took just over two minutes, compared to today’s average of two to three days when sending cross-border payments. The portion of the transfer that relies on the XRP Ledger takes two to three seconds, with the additional processing time attributed to movement across the intermediary digital asset exchanges and local payment rails.

A payment journey with xRapid looks like this: a financial institution connects directly to digital asset exchanges in both the originating and destination corridors. The originating currency is exchanged into XRP which provides the necessary liquidity to power the final payment, and then in seconds that XRP is exchanged into the destination currency in the second digital asset exchange. Once this transaction takes place, the funds are sent out on the local rails of the destination country for payout. The transaction is tracked end-to-end, and the result is a cross-border payment that is cheaper and faster than ever before.


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Author: Torsten Hartmann
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Goldman Sachs Cryptocurrency Update, ‘Healthy’ Market Changes

American Investment Bank on Custodial Services, Claims Recent Price Movement is “Healthy” For Crypto

Bitcoin, Cryptocurrency, Goldman Sachs–While most of the world hinges upon price news surrounding the the precipitous fall in value for Bitcoin and most of cryptocurrency, Wall Street megalith Goldman Sachs is updating clients on where they stand in relation to securing digital assets.

Despite the price fall experienced over the last two weeks, a growing number of clients for the big bank are posting inquiries into whether they can find safe harbor for their crypto assets. According to Bloomberg, Goldman has not made any progress on the front of direct custodian features for Bitcoin and altcoin holders, with the bank’s head of digital asset markets Justin Schmidt commenting upon the lack of availability at a conference in New York.

“One of the things they ask me is ‘Can you hold our coins?’ and I say ‘No, we cannot,” One of the things we have to take into consideration when we’re building out our business is what we can and cannot do from a regulatory perspective.”

While Goldman may not directly offer a service for storing client coins, it has made efforts to enter the space–despite the murky legal landscape of cryptocurrency–by investing in custodial service provider BitGo Holdings Inc. in October. In addition, Goldman was one of the first to clear Bitcoin futures offered by Cboe Global Markets Inc. and CME Group Inc., showing some inclination by the company to wade into the space of cryptocurrency–even with prices in their present spiral.

While Goldman has yet to outright trade in the digital assets, there were rumors reported last year that the company was considering opening a trading desk, a point that stirred up contention this past September.

Schmidt went on to comment that clients appear to have raised some demand for the bank to offer direct custodial services, particularly with the level of complexity required for the average trader to maintain their private keys and establish their coins in a space safer than what most exchanges currently offer. Some of the conversation from the client end has been around the free-falling price of cryptocurrency, and the outlook that now appears shrouded as the asset reaches its lowest point on the year.

With some institutional players such as VanEck still in the running for the creation of a Bitcoin Exchange-Traded Fund, a renewal in the crypto markets could pose more demand upon Goldman to offer expanded services to clients. Schmidt cited Bakkt and last month’s announcement by Fidelity to enter the space of cryptocurrency as positive developments for the investment side of the industry. He also acknowledged that institutional investors fall on the conservative side, which accounts for the increased murmuring over the lack of custodial services,

“Custody is this foundational piece that is absolutely necessary. Custody is part of an overall integrated system where different parts need to work well with each other and safely with each other and you have to be able to trust all the different parts in that chain, from buying something to transferring it to storing it in for the long-term.”

Schmidt concluded with a statement of encouragement for crypto investors struggling with the recent market crash, claiming that the rapid shift in valuation would shake off some of the less desirable and rampant speculation present in the industry,

Author: Michael Lavere

How 2019 Can Be A Promising Year For Cryptocurrencies

2017 was a year when cryptocurrencies enjoyed its biggest successes. Most of the virtual currencies broke the glass ceiling with their resistance levels. It was a year when it was almost taken for granted that investing in these non-fiat currencies could help you to get amazing returns.

The bullish trends that time were the fear of missing out (FOMO) by potential investors and the general excitement of a new invention.

This amount of positivity was, however, met with doom and gloom that December when prices skyrocketed and then plummeted suddenly. This was the case of all major cryptocurrencies, with Ethereum suffering the biggest blow.

The bearish market trend then was a result of hostile regulatory environment by governments the world over who wanted to protect fiat currencies as against their virtual peers.

2018, however, is a tumultuous year for cryptocurrencies.  Till date, it was seen that most of the avenues for making money from cryptocurrencies had fallen flat. Some Investors looked the other way even as people who had faith in virtual currencies made money by strategically selling off their investments through Online Cryptocurrency Exchanges.

For the remainder of 2018 and the coming 2019, here are a few strategies which can be adopted to ensure great returns from cryptocurrencies.
  1. In the long run, cryptocurrencies with real world partnerships can help to get the best bang of the buck

The Cryptocurrency market is fast paced, highly risky and also better suited to day traders than it was ever before. Just like you would do with stocks, you can select virtual currencies which you can wait on 2-5 years before redeeming.

You can do this by choosing those cryptocurrencies that have partnerships with real-world industry players. For example, Stellar Lumens has partnerships with Shift, Deloitte, IBM and Stripe to name a few.

  1. Let Robots do the trading

With robotics now creeping into all fields, you can now take the help of bots to trade in cryptocurrencies for you. Generally, most cryptocurrencies fluctuate 1-2% daily and bots can ensure you get the best deal by keeping a keen eye on the markets for you 24×7. You can take the services of Gekko, CryptoTrader or Zenbot for this.

  1. You can run a masternode to accumulate returns and increase the quantum of investment

As an investor, you do not necessarily need to trade in cryptocurrencies. You can also operate a node which can be used to earn passive income while also getting the benefit of price appreciation on the staked coins.

Operating a masternode typically requires a hefty initial investment, where you need an operator to run the node. These operators can get a 5-20% of a block reward which is meant to compensate them for the cost of running a node.

The cost of operating a node has significantly reduced, making it a lucrative way to earn through cryptocurrencies. Node operators can hold, exchange or block their rewards on cryptocurrency exchanges like Evonax.


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Author: Claus Jensen

Bitcoin SV Debuts on CoinMarketCap, Climbs to #7 in Less Than Two Hours

Bitcoin SV was a full node implementation for Bitcoin Cash that opposed several changes proposed by the ABC development team. Originally, they hoped to become the default implementation for BCH, not create a new coin. But after almost two weeks of uncertainty surrounding Bitcoin SV, it has received its own listing on CoinMarketCap, becoming the 7th most valuable cryptocurrency by market cap.


To Split or Not to Split?

Bitcoin SV is the brainchild of Dr. Craig S Wright and his company, nChain. They started making a lot of noise in August, opposing the ABC development team who were proposing changes that would allow faster validation and propagation of blocks. SV is also backed by Coingeek owner Calvin Ayre, a billionaire online gambling mogul. Ayre’s company controlled a massive amount of the total network hash rate leading up to the fork, and they were completely committed to supporting SV.

One of Wright’s main goals was not to split. He did not particularly want to split off onto his own network – instead, he wanted his implementation to be the one most used on the network. When the split happened, the SV chain fell behind in both block height and total work done. More miners were mining on the ABC chain. Since ABC gained their original lead, SV has shortened the lead slightly but still has not even gotten close to overtaking ABC.

 

A large majority of the BCH ecosystem sided with the ABC team, further cementing them as the winning chain. Exchanges started listing the ABC chain under the BCH ticker, many wallet providers stated that the ABC chain would be followed.

Another important point is that neither side implemented replay protection. When Bitcoin Cash split from Bitcoin, replay protection was implemented in a way that users couldn’t lose funds. When SV split from BCH, so such protections were put in place.

Wright Waving the White Flag

Earlier today, it was announced that replay protection would now be implemented and both chains will coexist. With replay protection on, the user experience on both chains will be significantly better.

Less than two hours ago, CoinMarketCap gave Bitcoin SV its own listing on their website. Currently priced just shy of $105 after rising more than 20% over the past 24 hours, it instantly became the 8th largest cryptocurrency by market capitalization. Since then, it has climbed even higher and currently sits at the #7 spot, with a little more than $20 million separating it from Tether.

The SV chain has been having some technical problems in the past week, such as hours between blocks and some blocks crashing nodes after propagation. We’ll see if the team at nChain can fix these issues and scale their chain.


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Author: MATTHEW HRONES 
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Litecoin Creator Correctly Predicted Price Crash Back in December Last Year

Charlie Lee, creator of Litecoin predicted back in December that Litecoin could crash to $20. Now in November, we are pretty close to seeing that price in reality.

It is no secret that Charlie sold all of his Litecoin holdings at the peak price, he received a lot of backlash from the community at the time and to this day people still criticize him. But it is less known that he predicted a multi-year bear market with Litecoin’s price dropping to as low as $20.

Charlie Tweeted:

“Ok, sorry to spoil the party, but I need to reign in the excitement a bit… Buying LTC is extremely risky. I expect us to have a multi-year bear market like the one we just had where LTC dropped 90% in value ($48 to $4). So if you can’t handle LTC dropping to $20, don’t buy!”

Unfortunately, a lot of people ignored Charlee’s advice and were in the Euphoric stage at the time. But his prediction is pretty much on track to be true.

Even though the price more than doubled in a week after his prediction, it has dropped over 93% from the peak price of $366 to a low of $27 rhyming the previous bear market.

Litecoin’s Price After Charlie’s Prediction:

Image Source: Coinmarketcap

It turns out that Charlie took the right decision of selling the top at the time. He has justified his selling multiple times saying that it has nothing to with his belief in Litecoin but has to do with having a conflict of interest.

He wrote at the time:

“it is conflict of interest for me to hold LTC and tweet about it because I have so much influence. I have always refrained from buying/selling LTC before or after my major tweets, but this is something only I know. And there will always be a doubt on whether any of my actions were to further my own personal wealth above the success of Litecoin and crypto-currency in general,”


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Author: Shrikar
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Venture Capitalist: Be Patient With Crypto, Amazon Took 8 Years to Recover From 1999

Renowned venture capitalist Fred Wilson has said that crypto could go down even more in the short-term. But, investors that remain in the market will likely be rewarded, as was the case in the Dot Com era.

In a blog post on Nov. 25, Wilson said:

“So while crypto asset prices are down 80-95% in USD terms over the last year, they could and probably will go lower. Amazon was down 80% a year into the post-bubble bear market and it got cut in half again before it made a bottom almost two years after it peaked. What we have yet to see in crypto land is when they kick you when you are down. And that is certainly coming.”

Case of Amazon

Amazon, now the second largest technology conglomerate in the world behind Apple with a stock price of $1,500, was worth $6 less than 17 years ago. Investors that bought Amazon stocks in 2001 are up 250-fold. If you had invested $1,000 into Amazon at the time, that investment is now worth $250,000.

But, prior to 2001, in 1999, the price of Amazon stock achieved a new all-time high at $90 as the Dot Com bubble peaked. From then on, the stock price of Amazon collapsed, declining to $6 in 2001. It took Amazon more than eight years to recover to $90 in 2007.

Wilson noted:

“Amazon peaked in the Internet bubble in late 1999 at around $90/share. Almost two years later, at the trough, you could briefly buy Amazon at $6/share. And then it took until late 2007 for Amazon to trade above the highs it reached in 1999.”

Provided by AVC.com

Like Amazon, the cryptocurrency sector has suffered several large corrections in the past and each one of the corrections averaged a drop of 85 percent. As an asset class at its infancy, cryptocurrencies will continue to experience bubble-burst-build-rally cycles in the years to come.

Wilson emphasized that similar to the case of technology stocks in the early 2000s, investors that remain in the cryptocurrency sector through long-lasting downtrends and bear markets will be rewarded in the long-term.

“I think some crypto asset (and possibly a number of crypto assets) will have a price chart like Amazon’s current one in 18 years. But we will have to do what Amazon did, hunker down and build value and survive, for quite a while to get there. And I think things will get worse before they get better,” said Wilson, adding that no paydays were awarded to investors in the technology space until 2010.”

Wilson added:

“But those who stayed were rewarded, although it took a long time for that to happen. We didn’t see meaningful paydays in the Internet sector until the 2007-2008 period and the big paydays didn’t start coming until 2010 and beyond.”

Promising Future

In 2017, as individual investors fueled a strong rally for major cryptocurrencies, the global crypto market secured a valuation of over $800 billion. Since then, the cryptocurrency exchange market has seen a drastic change in its infrastructure with the entrance of Fidelity and conglomerate-backed exchanges.

BitcoinEthereum, and other major blockchain networks saw the implementation of fundamental first layer improvements pertaining to security, privacy, and scalability.

In many areas including regulation, infrastructure, and liquidity, the cryptocurrency sector is in a much stronger position than it was in late 2017.

The latest cryptocurrency market crash was triggered by the movement of the market; when an asset class experiences a four-fold increase in value within a two-month period, it tends to correct. But, as Wilson said, it is important to objectively evaluate the state of the market and the sector with tangible evidence.


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Author: Joseph Young
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Bitfinex Defies Black Friday, Triples Minimum fee Without Prior Announcements

If you cannot get over the deals you got on Black Friday, you must be the lucky one, as Bitfinex has certainly defied all odds to increase its minimum wire transfer fee from $20 to $60. The more surprising part was not the cost increase, but rather the silence maintained over it. Generally, when changes in terms of fee or payment or anything related to price is done, the customers are the first ones to be informed, however, the company certainly has other plans as they have maintained the silence throughout.

The move by the exchange can be understood since many cases of irregular withdrawals were on the rise. However, the decision to increase the prices also brought it under the category of one of the most expensive exchanges to withdraw your crypto fortune from, when compared to similar exchanges offering withdrawals at much steeper rates.

The surprising fact is, Bitfinex made several announcements regarding its token offering and a few other aspects. However, they deliberately kept silent on the increased withdrawal charges — the only way a user can know about the increment if they check the Exchange schedule right after the change.

Bitfinex has been experiencing delays in withdrawal leading upto a month, where they had to pay a compensation fee to the customers in some instances. The issue of slow processing is being worked out, but the delays could have prompted the company to increase the cost.

Kasper Rasmussen, the head of marketing for Bitfinex seems the increased price is not the cause of any worry to the company or its customers. He says,

“Our fee schedule remains subject to change at any time and for a wide array of reasons. This could reflect added complexities associated with a given token, transaction or process, or supply/demand factors.”

This incident is not the first change regarding the fee that the company has initiated without offering an official statement or reason behind it. Not so long ago, the Bitfinex also increased a charge of 3% on wire withdrawals. A report says,

“Two weeks ago, Bitfinex added a 3% fee on wire withdrawals that exceed more than $1 million in aggregated value or that accounted for more than two withdrawals during a period of 30 days. Although that fee was also effective immediately, Bitfinex did issue an announcement on that change.”

These changes into the system are being seen as a subtle way to defer the customer from making small wire withdrawals. The increased cost would undoubtedly limit the withdrawals to a monthly basis. However, the increased price would only make small retailers and investors move away. Many exchanges such as coinBase Pro offers the same service at $25, and Kraken is even lower at $5.


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Author: Prashant Jha
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How the Gartner Hype Cycle explains the current Crypto Market – Part 1

The Gartner Hype Cycle is a term that explains the reception of new technologies in our society. The market researcher Jackie Fenn invented this model working for the market research company Gartner. Hence the name Gartner Hype Cycle. The Y-Axis of the curve that you can see describes the attention that a technology receives, the X-Axis the time that has passed since the invention of a new technology.

 

It fits to the invention of Bitcoin or cryptocurrencies in general as well. Though, we likely have to modify the cycle to describe the crypto markets. In a simple version of the model the cycle we can describe it in five parts. The first phase is called:

Technology Trigger

The exact date of the creation of Bitcoin is not exactly clear. Satoshi Nakamoto published the whitepaper of Bitcoin in October 2008 and it is possible that he had already created Bitcoin by then. Though, the first message on the blockchain of Bitcoin dates famously back to the 3rd January 2009. Basically, all the inventions for Bitcoin made its invention possible in the nineties already. But as the first message reveals Bitcoin was created out of an economic-political desire. But that is another subject.

 

According to Fenn, only experts and professionals will adopt the currency. Besides, Cypherpunks and code-geeks this also included libertarians and anarcho-capitalists who dominate the crypto space until today. From these insiders information ripples to less informed people. Which leads to the next phase.

Peak of Inflated Expectations

From the insider circle information seeps slowly into the mainstream. And slowly or rapidly creates a hype. Bitcoin was for a long time only known in a special audience. Cypherpunks, libertarians and related people heard about Bitcoin first and only when the price of Bitcoin rallied did it attract people with other backgrounds. Those people have very different backgrounds professionally, politically etc. but they share an affinity for financial matters and drove the price of Bitcoin higher.

Typical for this stage of the hype cycle is that people exaggerate the possibilities of the technology. We saw this behavior during the ICO craze of 2017/18. Every little cryptocurrency project wanted to disrupt its branch. However, we all know how it ended. Over 90% of ICO projects already failed. Of these ICOs one half turned out to be scams, another half was run by amateurs or were ill-conceived from the start. The Bitcoin price corrected and is currently likely crashing. Consequently, we see ourselves in the third phase.

Trough of Disillusionment

The ICO craze ended in a financial bloodbath for many investors. Not a single cryptocurrency has disrupted its sector. The breakdown of the prices is a logical consequence of that. The Bitcoin price is relatively low but there is still room to fall even lower. The Altcoins have performed even worse in total. It is questionable for most of these coins whether they will ever recover. However, that does not mean that all Altcoins are useless entirely. Already towards the end of the ICO craze the hunt for massive gains and disruption vanished for something else: partnerships and real-use-cases.

Normally, this changed attitude would be an indication of the next phase of the Hype Cycle. We are going to talk about it in part 2 of this article. Here we will close the article with the thought that cryptocurrencies are not a normal technology. Like for example the 3D-printing technology. Just a few years ago the technology went through a hype. Everyone talked or heard about it. But ultimately, it was and is, as of now, of little use in our everyday’s life. But the technology remains very useful in special sectors like medicine to print out individual protheses e.g. or in the building sector to produce individual tubes, blocks etc for various purposes. We can see how the text book model of the Hype Cycle perfectly fits to the reality of 3D-printers. But can we really say the same about Bitcoin?


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Author: Micha Sprick
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