Bitcoin: Can The Recovery Last?
Story by: Naeem Aslam
The Santa rally is yet to arrive in the crypto markets, with Bitcoin struggling to break above the $4K mark. The price has broken below the major psychological levels of $6K and $5K and the next level the market is eyeing is $3K.
FILE: Employees check fans on mining machines at the Bitfarms cryptocurrency farming facility in Farnham, Quebec, Canada, on Wednesday, Jan. 24, 2018. The great cryptocurrency crash of 2018 is heading for its worst week yet. Bitcoin sank toward $4,000 and most of its peers tumbled on Friday, extending the Bloomberg Galaxy Crypto Index’s weekly decline to 25 percent. That’s the worst five-day stretch since crypto-mania peaked in early January. Photographer: Christinne Muschi/Bloomberg photo credit: © 2018 Bloomberg Finance LP© 2018 BLOOMBERG FINANCE LP
Looking at the Ethereum price, one would think the glory days are gone. The price of Ethereum is trading at $110, down over 90% from its all-time peak.
Speaking at yet another well-executed conference in Singapore, the BlockShow, I had a battle with Bobby Lee, co-founder of BTC China, about the use case of blockchain. Bobby is no longer a believer of blockchain use cases outside of the Bitcoin world. The distributed ledger technology is the real deal with the potential to change our lives and there is no doubt that governments have done several pilots using this technology. In Georgia, for example, the land registry is done by using this technology. This reduced not only the time it takes to register the property, but also the unnecessary costs. Several governments are using blockchain technology at their ports, the Netherlands for example. This confirms that blockchain technology is, in fact, coming out of its nascent stage and becoming more powerful.
One thing that we agreed on was that Ethereum is paying a huge price for the sham projects that are abundant in the industry. Several ICOs used this protocol in 2017 and 2018. However, as a lot of them were out there just to collect money with no real team or idea behind it, Ethereum was the one to pay the price. The current sell-off in the Ethereum price is mainly due to the low volume of new ICOs coming in the market. Investors have become smarter in understanding the landscape and the existing projects are selling their Ethereum because of the price crash.
Nonetheless, Joseph Lubin, the co-creator of Ethereum and the founder of ConsensSys, believes that the use cases and the adoption process is growing rapidly for the protocol.
Original story by: https://www.forbes.com/sites/naeemaslam/2018/12/04/bitcoin-can-the-recovery-last/#57ebd1de2928
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