Cryptocurrency analysis: Premonitions and Foreboding

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As the Federal Reserve issues its warnings about a particularly large market fall, investors continue to seek certainty where no one can be found in any market.

As covered by Fortuna writer Chris Morris, issues include commercial tensions, an increase in corporate debt with weak balance sheets, an increase in geopolitical uncertainty and other potential adverse shocks. The Federal Reserve states:

"The resulting decline in asset prices could be particularly large, as valuations appear to be high compared to historical levels".

…IS…

"Even if the central bank's policies are completely anticipated by the public, some adjustments could occur suddenly, contributing to volatility in national and international financial markets and tensions in institutions",

This means that corporate bonds, many government bonds and the stock market all remain risky investments in the next year.

As I explained in yesterday's article "Cryptocurrency analysis: the US dollar influences the price"There is a risk for the price in US dollars of cryptocurrencies as they are strongly linked, I have also stressed that the real estate market also has risks, in light of this, will the cryptocurrency industry survive?

Jeffrey Sprecher he says yes he will. He is the managing director of IntercontinentalExchange and president of the New York Stock Exchange and spoke at the Consensus Invest conference in New York on November 27^th. Answer the question on the survival of the cryptocurrency:

"I would say that the unequivocal answer is yes," he said, adding that "we are a little bit agnostic at price".

There are still many checkpoints ahead of the cryptocurrencies in 2019. The current SEC president Jay Clayton wants to see better market surveillance and custody before an ETF related to the cryptocurrency is approved. Although exchanges such as Gemini have added surveillance tools powered by the NASDAQ and safekeeping tools that are strong, the main SEC consultants remain skeptical:

"We've seen some theft on digital resources that make you scratch your head," Clayton said, "We worry that the underlying assets of that ETF will be well looked after and will not disappear."

The NASDAQ plans to add a forward market during the first three months of 2019. The Commodity Futures Trading Commission remains friendly with cryptocurrencies and is likely to issue final approval for the NASDAQ to begin trading futures. Traders will now be able to use a larger stock exchange with a larger volume to exchange futures contracts in addition to the CME and CBOE exchanges.

In the middle of all this, it is important to clearly understand the underlying assets of the negotiated cryptocurrencies. Currently, "market capitalization" is used as an important metric to judge the overall size and health of a cryptocurrency. Aat de Kwaasteniet writes in an average post that this value makes no sense when judging a cryptocurrency. As highlighted by Tron (TRX), by manipulating the counting of coins in circulation between September 29, 2017 and October 8, 2017, it was possible to jump from 98^th place at 35^th even if the trading volume remained at around $ 50,000 to $ 200,000 a day. According to the analysis of Aat, other cryptocurrencies that have performed a similar manipulation strategy include Ripple, EOS and Cardan.

Bitcoin currently creates about 1,800 new coins a day. Ethereum creates about 19,000 coins a day. This means that there are about 7.2 million new Bitcoins and 2 million new Ethereums created every day based on today's price. By volume, second Index of world coins, Bitcoin carries $ 3.56 billion a day (4% of the market cap) and Ethereum carries $ 1.38 billion a day (10% of the market cap).

The true volume measurement is difficult to calculate because many exchanges support "out of the chain"Transactions. In addition, some grants publish misleading messages (zero cost and more) trades that artificially inflate volume metrics.

Both Coinbase is Gemini they now offer OTC trading for financial institutions, both of which are important steps towards the wider adoption of cryptocurrencies as a reliable financial instrument. Such blocking operations would provide an important liquidity step for companies seeking to regulate large amounts of transactions simultaneously.

Still many short-term traders expect the US dollar rate on bitcoins to remain "moon math"Journey with the United States: dollar price of a bitcoin approaching something between $ 10,000 and $ 100,000 by January 2020.

With the State of Ohio, is other traders who use Bakkt planning to accept Bitcoin as a payment method next year, the future of cryptocurrency remains truly brilliant. Although there are many uncertainties in the world, innovators continue to contribute to a global cryptocurrency-driven business and commerce platform.

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As the Federal Reserve issues its warnings about a particularly large market fall, investors continue to seek certainty where no one can be found in any market.

As covered by Fortuna writer Chris Morris, issues include commercial tensions, an increase in corporate debt with weak balance sheets, an increase in geopolitical uncertainty and other potential adverse shocks. The Federal Reserve states:

"The resulting decline in asset prices could be particularly large, as valuations appear to be high compared to historical levels".

…IS…

"Even if the central bank's policies are completely anticipated by the public, some adjustments could occur suddenly, contributing to volatility in national and international financial markets and tensions in institutions",

This means that corporate bonds, many government bonds and the stock market all remain risky investments in the next year.

As I explained in yesterday's article "Analysis of the cryptocurrency: the US dollar influences the price", there is a risk for the price in US dollars of cryptocurrencies as they are strongly linked. I also stressed that the real estate market also has risks. In light of this, will the cryptocurrency industry survive?

Jeffrey Sprecher says yes. He is the managing director of IntercontinentalExchange and president of the New York Stock Exchange and spoke at the Consensus Invest conference in New York on November 27^th. Answer the question on the survival of the cryptocurrency:

"I would say that the unequivocal answer is yes," he said, adding that "we are a little bit agnostic at price".

There are still many obstacles to cryptocurrencies in 2019. The current SEC president Jay Clayton wants to see better market surveillance and custody before an ETF on cryptocurrency is approved. Although exchanges such as Gemini have added surveillance tools powered by the NASDAQ and safekeeping tools that are strong, the main SEC consultants remain skeptical:

"We've seen some theft on digital resources that make you scratch your head," said Clayton, "we're interested in the underlying assets of that ETF being well protected and not disappearing."

The NASDAQ plans to add a forward market during the first three months of 2019. The Commodity Futures Trading Commission remains friendly with cryptocurrencies and is likely to issue final approval for the NASDAQ to begin trading futures. Traders will now be able to use a larger stock exchange with a larger volume to exchange futures contracts in addition to the CME and CBOE exchanges.

In the middle of all this, it is important to clearly understand the underlying assets of the negotiated cryptocurrencies. Currently, "market capitalization" is used as an important metric to judge the overall size and health of a cryptocurrency. Aat de Kwaasteniet writes in an average post that this value makes no sense when judging a cryptocurrency. As highlighted by Tron (TRX), by manipulating the counting of coins in circulation between September 29, 2017 and October 8, 2017, it was possible to jump from 98^th place at 35^th even if the trading volume remained at around $ 50,000 to $ 200,000 a day. According to the analysis of Aat, other cryptocurrencies that have performed a similar manipulation strategy include Ripple, EOS and Cardan.

Bitcoin currently creates about 1,800 new coins a day. Ethereum creates about 19,000 coins a day. This means that there are about 7.2 million new Bitcoins and 2 million new Ethereums created every day based on today's price. In terms of volume, according to the World Coin Index, Bitcoin carries $ 3.56 billion a day (4% of the market cap) and Ethereum carries $ 1.38 billion a day (10% of the market cap).

The true volume measurement is difficult to calculate because many exchanges support "off-the-shelf" transactions. In addition, some exchanges publish deceptive sales (at no cost and others) that artificially inflate volume metrics.

Both Coinbase and Gemini now offer OTC trading to financial institutions, both of which are important steps towards the broader adoption of cryptocurrencies as a reliable financial tool. Such blocking operations would provide an important liquidity step for companies seeking to regulate large amounts of transactions simultaneously.

Still many short-term traders expect the US dollar rate on bitcoins to remain on the path of "lunar mathematics" with the United States. Price in dollars of a bitcoin approaching something between $ 10,000 and $ 100,000 by January 2020.

With the state of Ohio and other merchants using Bakkt planning to accept Bitcoin as a payment method next year, the future of cryptocurrency remains truly brilliant. Although there are many uncertainties in the world, innovators continue to contribute to a global cryptocurrency-driven business and commerce platform.