Monday’s rebound by cryptocurrency giant Bitcoin left investors thinking that the bubble might have burst. But Bitcoin increased by 4.9% and retreated back well by gaining a value of $35,616 per coin as of 11:30 a.m. London Times.
Bitcoin’s roller-coaster ride took the crypto community and the industry in 2017. It was the time when Bitcoin almost touched $20,000 but dipped back to $5,000. The history repeated itself when on 8th January 2021 Bitcoin reached a price of US$ 42,000 plus but the moment couldn’t last long.
Guggenheim Investments’ Scott Minerd, its CIO tweeted on 11th January 2021 that Bitcoin investors should tread carefully now as the bubble has popped. He advised the investors to keep their money off the table for the time being.
However, Minerd’s advice did not do much to keep them away from Bitcoin. In fact, they responded back vigorously and said that the circumstances in 2017 were different. They said that 2020’s circumstances which continue to prevail cannot in any manner be compared with 2017. They added further that the crypto market/industry and digital assets have seasoned up with intuitional investors. Today Bitcoin is seen as a legitimate hedge against the dollar and countries around the globe looking to regulate it, they added.
While others believe that Bitcoin will never be a feasible alternative to any currency. But those who bought Bitcoin in 2019 are said to be sitting on the 300% gains. Yet the reasons for the recent slide were unknown but most importantly Bitcoin retreated well.
While Bitcoin may be under the spotlight but stablecoins are said to have been increasing steadily. The high cost of Cryptocurrency Mining requires specialized software and mostly dependent on hardware for most of the cryptocurrencies. Much anticipated Ethereum 2.0, is reported to be launched soon. With Ethereum’s 2.0 upgrade it is widely believed that Ethereum would be the Next bitcoin.
However, the crypto industry continues to be dominated by its crown king – Bitcoin. Ehtereum is the second largest but considering the value of Bitcoin, it doesn’t come any closer to Bitcoin. But the Ethereum Blockchain network is by far the best in the crypto industry. Apart from Bitcoin and Ethereum, the next big boys of the crypto world are Bitcoin Cash, Ripple, and Litecoin.
Ethereum was developed in 2015 by a Russian techie Vitalik Buterin as a software platform rather than a hardware-dependent cryptocurrency.
Meanwhile, Litecoin was co-founded by Google’s former engineer in 2011. More or less, Litecoin is a kind of version of Bitcoin but with the ability to process data quickly and efficiently. Mining of Bitcoin can be done at any ordinary computer and does not require any high electricity consumption.
The Cryptocurrencies market value made headlines when it hit the $1 Trillion mark for the first time ever. The active Bitcoin accounts are at an all-time high and this shows that Bitcoin is still on the Bull-Run. It is noteworthy that there are only a few digital wallets that have about 95% of the total Bitcoin supply. So if few of the big transactions are being conducted by these account holders, then sudden change will appear in Bitcoin. Apparently, Bitcoin’s value would go further up while its market capital would increase as well.
Analysts in the earlier week echoed that bitcoin may reach as high as $146,000 being gold of the digital world. The largest crypto asset management of the world, Grayscale Investment was first seen investing in XRP. But later on Grayscale Investment changes its strategy and said that it wanted to dispose of its holding of XRP. It was further revealed by Grayscale Investment that the sale proceeds will be utilized for buying more Bitcoins.
Grayscale Investments has been managing the biggest Bitcoin and Ethereum fund in the world. But it is said in the crypto world that Ethereum 2.0 will change the course of crypto industry entirely. Thus, considering the multilateral use of the Ethereum Network, it would not be wrong to suggest that Ehtereum would be the next Bitcoin.