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Crypto

Why is Bitcoin now down from all-time highs?

 

Bitcoin, the world’s first decentralised cryptocurrency, has now plunged. There could be many reasons why the price of Bitcoin has declined significantly from its all-time high. 

Where is Bitcoin now?

In early 2018, the price of bitcoin was hovering around $13,000, a significant drop from its all-time high of $19,783.06 reached in December 2017. However, in 2019, the price of bitcoin began to rebound, climbing back up to around $10,000 by the end of the year. This upward trend continued into 2020, with the price reaching around $12,000 by the summer and then surging to $18,000 by December.

The price of bitcoin continued to be highly volatile in 2021, with a sudden drop in early January and then a steady climb through the rest of the year. By December 2021, the price of bitcoin had reached $30,000. Nowadays, one Bitcoin worth is around $17,000, which was around $69,000 in November 2021, and then it reached $47,000 in January 2022. 

Why is Bitcoin’s price dropping?

Bitcoin started 2022 on a positive note, but certain unfortunate affairs brought too many swings in the cryptocurrency’s price, which made BTC crash over the past year. Here are some possible factors that could cause Bitcoin’s price to fall:

  • Rising inflationary fears:

Rising inflationary fears have a significant impact on the value of Bitcoin Currency and other cryptocurrencies. Inflation is a measure of the rate at which the overall level of prices for goods and services is rising. When inflation is high, the cost of living increases and consumers have less purchasing power. This led to a decrease in demand for goods and services, which in turn led to a decrease in the value of assets such as Bitcoin.

  • Uncertainty due to rising interest in the U.S. and the U.K:

Uncertainty due to rising interest rates in the United States and the United Kingdom had a significant impact on the value of Bitcoin. Higher interest rates make it more attractive for investors to hold fiat currencies, which has led to a reduction in demand for Bitcoin. Additionally, rising interest rates can also lead to increased volatility in the stock market and other financial markets, which also impacts the value of Bitcoin.

  • Terra-Luna crash:

The “Terra-Luna crash” refers to the failure of the Terra-Luna project, a cryptocurrency project that aimed to create a stablecoin pegged to the value of the moon. This project impacted the BTC price and investors’ confidence to invest in the broad crypto market. Additionally, the Terra-Luna crash also led to increased regulatory scrutiny of the broader cryptocurrency market. Regulators become more concerned about the risks associated with investing in cryptocurrency projects and take steps to increase regulation of the market. This led to increased costs for cryptocurrency businesses and made it more difficult for new projects to launch.

  • The collapse of the largest global cryptocurrency exchange, Future Exchange (FTX):

FTX is one of the most popular and widely used cryptocurrency exchanges in the world, with millions of users and a large volume of trades. The collapse between FTX and Binance, led to a decrease in demand for Bitcoin and other cryptocurrencies, as investors lost access to a major platform for buying and selling BTC. This showed a decline in the price of Bitcoin and other cryptocurrencies, as the supply of digital assets exceeded the demand.

  • System of taxation:

High taxes on digital currencies make it less attractive for individuals and businesses to use and invest in them. Leading to a decline in demand for digital currencies and their value. The government imposed a high capital gains tax on Bitcoin, which discouraged individuals from buying and selling digital currency, leading to a decrease in demand for its price. Governments should strive to create a clear and consistent tax regime that encourages the use of digital currencies while protecting investors and preventing fraud. 

Conclusion:

Bitcoin’s price is plummeting nowadays due to the FTX’s downfall. Furthermore, many other factors have contributed to the recent decline in the price of bitcoin, including increased regulatory scrutiny, increased competition from other cryptocurrencies, hacking attacks and security breaches, market corrections, and profit-taking. However, it’s important to keep in notice that the cryptocurrency market is highly volatile and that prices can fluctuate rapidly.

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7 Crypto Coins That Could Reach New All-Highs in 2025

 

Predicting which cryptocurrency coin will reach new all-time highs in 2025 is a challenging task, as the market is highly dynamic and subject to a wide range of external factors. However, several coins still have a high potential to reach new all-time highs in the coming years. The coins discussed below have a strong developer community and a wide range of use cases, and many experts believe that they have considerable growth potential. These coins include:

Bitcoin (BTC): 

Bitcoin is the most well known and widely-traded cryptocurrency with a strong track record of price appreciation. Despite its volatile price history, many experts believe that Bitcoin has the potential to reach new all-time highs in the coming years due to increasing mainstream adoption and the limited supply of coins.

As the supply of Bitcoin decreases over time, the scarcity of the coin is likely to increase, which could lead to price appreciation. This scenario is supported by several factors, including the limited supply of coins and the growing recognition of the benefits of decentralisation.  If Bitcoin can overcome some of the technical and regulatory challenges that it faces, it is possible that it could become a widely-used means of exchange and store of value.

The most powerful scenario about Bitcoin is that it will continue to exist and be used by a small but dedicated group of users, but will not achieve widespread mainstream adoption. This scenario will be supported by the fact that Bitcoin has a strong and passionate community of supporters.

Ethereum (ETH): 

Ethereum is a decentralised blockchain-based currency, that promotes the creation of smart contracts and decentralised applications (dApps). One of the key factors that could contribute to the future growth of Ethereum is the increasing adoption of smart contracts. 

A smart contract is a self-executing contract in which the terms and conditions between a buyer and a seller are written directly in lines of code. They have the potential to revolutionise a wide range of industries by reducing the need for intermediaries and increasing the efficiency and security of transactions. As more and more organisations and individuals begin using smart contracts, the demand for Ethereum is likely to increase, which could lead to price appreciation.

Cardano (ADA): 

Cardano is a decentralised platform that focuses on enabling the creation of secure and scalable applications. Cardano is also likely to benefit from the increasing focus on decentralised finance (DeFi). DeFi refers to a growing ecosystem of financial applications and services that are built on blockchain technology and are operated in a decentralised manner allowing users to access a wide range of financial services, such as lending, borrowing, and trading, without the need for traditional financial intermediaries. 

The DeFi space has seen explosive growth in recent years, and it is expected to continue to evolve and mature in the coming years. We will likely see more traditional financial services being replaced by DeFi platforms as they become more user-friendly and offer competitive features and benefits. Furthermore, with its high scalability, quick transaction time, and robust infrastructure, Cardano’s value could reach new heights by 2025 making it a great investment option for those looking for long-term gains.

Binance Coin (BNB): 

Binance Coin is the native cryptocurrency of Binance Exchange, one of the world’s largest and most popular cryptocurrency exchanges. It has a strong track record of price appreciation and is widely used as a means of payment on the Binance platform. 

The increasing adoption of cryptocurrency exchanges could contribute to the future growth of Binance Coin. As people become interested in buying and selling cryptocurrency, the demand for exchanges is likely to increase. This could lead to an increase in demand for Binance Coin, as it is widely used as a means of payment on the Binance platform.

Chainlink (LINK): 

Chain Link is a decentralised oracle network that enables the creation of smart contracts that can securely access off-chain data. The factor that could contribute to the future growth of Chain Link is the increasing adoption of decentralised applications (dApps).

DApps are applications that are built on top of decentralised platforms and operate in a decentralised manner. They have the potential to disrupt a wide range of industries by enabling the creation of more transparent and secure systems. As dApps are being developed and adopted, the demand for Chain Link is very likely to increase, as it enables dApps to securely access off-chain data.

Solana (SOL): 

Solana is a high-speed, decentralised platform that is designed to enable the creation of scalable applications and has a wide range of partnerships and collaborations. It uses a unique consensus mechanism called Proof-of-History (PoH) to secure its network and validate transactions. PoH is a time-based consensus mechanism that uses a distributed timestamp server to record the order of events on the network. 

The key benefit of PoH is its ability to enable fast transaction speeds. Because PoH does not rely on a traditional proof-of-work consensus mechanism, it does not require validators to perform resource-intensive calculations to validate transactions. This allows the Solana network to process transactions much faster than other blockchain platforms.

Polkadot (DOT): 

Polkadot is also a decentralised platform that is designed to enable the creation of scalable and interoperable applications. It has a strong development team and a wide range of partnerships and collaborations.

Polkadot is focused on scalability and interoperability. Many blockchain platforms have struggled to handle the volume of transactions that are required for large-scale adoption. As a result, there has been a push to develop new technologies and protocols that can improve the scalability and performance of Polkadot.

Conclusion:

It is important to note that these are just a few examples of coins that have the potential to reach new all-time highs in 2025 and there may be other coins that also have strong potential. The cryptocurrency market is highly dynamic making it difficult to predict exactly what the future will hold. As with any investment, it is important to do your research and carefully consider your investment decisions before investing in any cryptocurrency.

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blockchain

Top blockchain Trends in 2023

Blockchain technology has already revolutionized the way business is done, and the possibilities continue to expand. Some experts estimated it to be a $20 billion industry in 2023, and more companies will recognize the potential of distributed ledger technology.

As such, several trends are emerging in blockchain technology that will surely shape the future of the blockchain. In this writing, we will know about some top blockchain trends for 2023, from decentralized finance (Defi) to non-fungible tokens (NFTs), and what they mean for your business.

Trends of Blockchain Technology:

  • Asset Tokenization:

The process of tokenization is the creation of digital assets that can be traded on the blockchain. This is done by converting existing assets such as real estate into digital tokens. This permits you to purchase and trade assets on decentralized exchanges without any intermediary. Tokenization can also be used to create new assets such as loyalty points and reward points.

Tokenization has many benefits such as increased liquidity, reduced costs, and faster transactions. It can also bring new investment opportunities to individuals and institutions that were previously inaccessible. For example, tokenization has enabled partial ownership of assets. This means that you can own a portion of real estate or other assets without having to buy them outright.

Tokenization is still in its infancy and many challenges need to be overcome to realize its full potential. However, technology is evolving rapidly and there are already some exciting projects underway. With continued innovation and adoption, tokenization could have a major impact on how assets are traded in the future.

  • dApps:

Decentralized applications work on blockchain networks. They are similar to traditional apps but have some key differences because dApps are not retained by any intermediary, and they are run by a community of users, all of whom play a role in maintaining the network. They make dApps more secure and more resistant to censorship than traditional apps.

Another important difference is that dApps often use cryptographic tokens to power their networks and due to their cryptographic nature, the use of these tokens can encourage users to join the network or reward them for their contributions. This creates an ecosystem of users invested in the success of dApps.

So far, there have been several successful dApps based on Ethereum, EOS, and other blockchain platforms. Common examples include CryptoKitties, Augur, and MakerDAO. As more developers create dApps and more users use them, more amazing decentralized applications could emerge in the years to come!

  • Private Blockchain:

Private blockchains operate in a private context or closed network, using peer-to-peer connectivity similar to public blockchain networks. Businesses use this blockchain network to customize authentication settings and other key security options. Transactions on this network are faster than on the public blockchain and offer companies the opportunity to scale their network size up or down.

Only certain users can validate and submit transactions and view data on the chain. Via cryptography and consensus mechanisms, it ensures network security and provides a secure platform for exchanging funds and assets between parties.

Private blockchains can use different consensus models such as Proof of Work (PoW), Proof of Stake (PoS), or hybrid consensus models. These mechanisms allow private blockchain participants to independently verify each transaction without relying on third-party verification services or miners.

  • NFTs focus on real-world Utility:

NFTs are growing in popularity due to their focus on real-world utility. As you know, NFTs are digital assets that cannot be exchanged due to their uniqueness. This makes them flawless for the usage of such things, as collectibles, games, and even digital art.

One of the advantages of NFTs is that they can be transmitted and stored on the blockchain, which makes them more secure than traditional assets, which are often vulnerable to fraud. Additionally, NFTs can be bought and sold on decentralized exchanges, giving users more control over their investments.

The growing interest in NFTs has led to the development of new platforms and applications that utilize this technology. The most popular are decentralized, Axie Infinity, and Crypto Kitties. These applications allow clients/users to buy, sell or trade virtual assets in a safe and transparent mode. NFTs are likely to continue to grow in popularity in the coming years due to their focus on real-world utility.

  • DAOs Go Mainstream:

Over the past year, the popularity of distributed autonomous organizations (DAOs) has skyrocketed. A DAO is a decentralized organization run by a set of rules encoded on the blockchain. Rules are enforced by the network of users participating in the DAO.

DAOs have several advantages over traditional organizations. They are censorship and corruption resistant, transparent and efficient. Additionally, DAOs can be created and operated without expensive infrastructure or centralized management.

The rise of DAOs is partly due to the increasing maturity of blockchain technology. With the availability of a more robust platform and tools, getting started with DAO is easier than ever. Additionally, the rise of Ethereum-based protocols has made it possible to launch complex DAOs with multiple layers of governance.

As you know, DAOs are becoming more and more popular and we expect more innovations in this area. We believe that DAO will eventually go mainstream and become a major force in the global economy.

  • Decentralized finance (DeFi):

DeFi refers to a growing ecosystem of financial applications and services that are built on blockchain technology and operate in a decentralized manner. These applications allow users to access a wide range of financial services, such as lending, borrowing, and trading, without the need for traditional financial intermediaries. 

The DeFi space has seen explosive growth in recent years, and it is expected to continue to evolve and mature in the coming years. We will likely see more and more traditional financial services being replaced by DeFi platforms as they become more user-friendly and offer competitive features and benefits.

Conclusion:

Overall, it is clear that the future of blockchain technology is full of promise and potential. While there are certainly challenges and uncertainties, technology has the potential to transform a wide range of industries and bring about significant positive change in the world. As technology continues to evolve and mature, it will be interesting to see how it is used and the impact it has on society and the global economy.

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blockchain Crypto Main Category

Top Trends of Metaverse in 2023

Top trends of Metaverse in 2023

The Metaverse is a persistent, user-created online world that exists across platforms. It is a shared, open environment where avatars can interact with each other and with virtual objects. The metaverse can be used for socializing, gaming, or other activities.

The term “metaverse” was first introduced by Neil Stevenson in his science fiction novel Snow Crash. In this book, the Metaverse is his three-dimensional representation of the Internet, allowing avatars to interact with each other and with virtual objects. The Metaverse is similar to Second Life, the online world that started in 2003.

There are several trends to describe what the metaverse will look like as it becomes more widely available. One thing is for sure, it’s not just another place to gamble.

Trends of Metaverse:

2023 is shaping up to be an important year for the Metaverse. Here are a few trends that could rule the metaverse in 2023.

  • Increased Interactivity and Social Connectivity:

As technology advances, the metaverse becomes increasingly interactive and social. With avatars in immersive environments such as multiplayer games, virtual reality experiences, and other shared spaces, there are even more ways to connect with others.

  • Improved Graphics and Immersion:

Graphics and immersion are key ingredients in making the Metaverse a fun place to be. As hardware and software evolve, we see more realistic and believable graphics that make it easy to forget you’re not in the real world.

  • More Engaging Content:

Content within the metaverse becomes more engaging as creators strive to make their work more immersive. As individuals leave their footprints in the metaverse, there will be more user-generated experiences, worlds, and objects. This may include more interactive elements such as games and puzzles.

  • Increased Security:

As the metaverse has grown in popularity, security measures have been put in place to protect user information and prevent fraudsters from taking advantage of unsuspecting victims.

  • Greater Customization Options:

Users have more customization options regarding their avatars and the environments in which they exist within the metaverse. This includes everything from customizing your avatar’s appearance to choosing the type of panorama you want to explore.

  • Improved Users Experience:

The user experience within the metaverse continues to improve as technology advances. This improved experience makes it easier for users to steer and find the content they’re scrutinizing for.

  • Decentralization:

The trend toward decentralization will continue. The metaverse will become more decentralized as people build their own experiences and platforms using open-source technology. This creates a more participatory and democratic metaverse where everyone has a say in how they develop.

Future of Metaverse?

The metaverse is constantly evolving and the future of the metaverse is always in flux. However, there are some key trends that we can expect to shape the future of the metaverse.

First, the growing popularity of Augmented Reality (AR) and Virtual Reality (VR) technologies means that more and more people will interact with the Metaverse via AR/VR devices. This will proliferate his AR/VR content and experiences within the Metaverse, creating new ways to interact with and navigate the Metaverse.

Second, artificial intelligence (AI) will play an increasingly important role in the Metaverse. AI-powered avatars and bots will become more commonplace, and AI will be used to create more realistic and believable environments and characters.

 Conclusion:

Heading into 2023, the popularity of the Metaverse will explode. As new platforms and technologies emerge, blockchain-based metaverse applications emerge, social media platforms grow, and companies and organizations use the metaverse for training and simulation, it is clear that the metaverse is the future of online interactions.

In addition, Web 3.0 and the existing open-ended virtual world will bring much-needed stability to the Metaverse, allowing existing players to continue using existing and upcoming resources. While media will provide new platforms and opportunities to new players for shaping the future of the metaverse.

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Boom or Bust? What the Future of NFTs holds?

Boom or Bust? Future of NFTs?

Many years ago, the future of NFTs was just a concept that a GIF or a JPEG file would be considered an art collectible was just unthinkable. Unlike today, they are known as NFTs, crypto investment assets with a market that surpassed a whopping 49 billion dollars in 2021. These digital tokens and NFTs are bought and sold on specific marketplaces where many tech investors have seen huge profits.

This idea of a digital marketplace where artists could share their work and sell them off directly without the involvement of auction houses or museums seemed impossible just a few years ago. It has drastically evolved over the past 5-6 years, allowing artists, big companies, and organizations to share their work on the NFT marketplace easily.

How did NFTs come into existence?

The concept of NFTs started to evolve on the surface when Meni Rosenfield introduced the idea of colored coins on paper in 2012. The basic idea was to teach a class of methods for representing and managing real-world assets on the blockchain to provide complete ownership of those assets. The idea wasn’t compatible with the Bitcoin blockchain but later came on to become the foundation of NFTs.

Kevin McCoy, a digital artist, minted the first NFT in 2014. Its name was “Quantum” and it was released on the namecoin blockchain. The Quantum was a digital pixelated octagon image that resembled an octopus in different changing colors. After this, several other NFTs were minted on several blockchains and soon after, Ethereum became the hub for releasing all new NFTs making the future of NFTs quite clear.

How NFTs turned out to be a Colossal Success?

In 2021, it became the year of the NFTs with a massive surge in the demand and supply of NFTs. This happened when famous auction houses like Christie’s and Sotheby’s started selling the NFT art pieces and took their auctions online. Christie’s NFT sale of Beeple’s “Everyday: The First 5000 Days” was sold for a whopping $69 million. Such a massive sale like this one validated the NFT marketplace’s growth and gained new customers’ trust.

After artworks, NFTs entered the music industry and succeeded there. Kings of Leon was the first music band to have had their album released through NFTs. Moving on, merchandise, concert tickets and even song tracks started getting sold as NFTs. The affiliation between the audience and the artist directly was one of the primary reasons behind the success of NFTs in the music industry. The main reason is the no longer involvement of third parties or intermediaries for their interactions.

NFTs today aren’t just limited to art, games, or music but they are also trending for every possible real-world asset. To utilize NFTs to their full potential, companies like LCX have introduced the concept of tokenization of diamonds. Almost all diamonds are unique, making them perfect to be tokenized into NFTs. These Tiamonds were enabled by LCX’s framework and are based on the Ethereum blockchain. Tiamonds provide complete transparency, value and security for your investments.

What’s the future of NFTs?

Despite some ups and downs in the past regarding the success of NFTs, it has survived and has become a huge hit. Considering all the aspects of what NFTs are today, we can confidently say they are here to stay. They have had an enormous impact, specifically in the art world. With many people moving towards the Metaverse, it will also definitely aid in the surge of NFTs.

NFTs are still a new technology, and their further growth largely depends on people’s realization of their impact in different fields. The more people realize its capacity and potential, the more they expand. It might still look blurry to some people about the future of NFTs, but with the recognition they have today, something big will happen for NFTs.

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Crypto Winter: Is It Over?

Crypto Winter

We all know that cryptocurrencies have seen better days. Lately, all the cryptocurrencies have been thriving to gain the credibility they had a few years ago. This year has been challenging for the crypto market.

The famous cryptocurrency Bitcoin (BTC) has been hovering around $20,000 nowadays, which is 70% off its high back in November 2021. It’s just not only Bitcoin that has been feeling the downward pressure. Others like Ethereum (ETH), Polygon (MATIC), Cardano (ADA), etc., have been 60% more off than last year.

Blockchain experts have already called this the next Crypto Winter after the last one, which lasted nearly three years, from February 2018 to December 2020.

What is Crypto Winter?

Crypto Winter, in terms of the cryptocurrency market, is referred to the steady and unstable growth where the market seems to be unprofitable. Defining it further, the crypto winter refers to when the prices contract and remain low for a pervasive period.

Cryptocurrencies aren’t the only thing suffering in this long winter. The people and companies behind it are also facing difficulties as well. Major blockchain and crypto companies have witnessed and seen profound losses. Even the leading NFT marketplace, OpenSea, had to cut its staff by 30% during this year’s summer.

Advantages of Crypto Winter

It’s not the first time the market has settled over a crypto winter. From such experience, we know that the crypto winter is much like the conventional bear market because the results are similar.

Due to the long term of this crypto winter, many young startups have weeded out. Thus, indirectly allowing the top companies to prove and mature their crypto products.

Will Crypto Come Roaring Back?

When it comes down to predicting the crypto winter’s end and the crypto market’s future, many experts have pointed out that more essential cryptocurrencies will prevail.

Many people and investors have stopped buying cryptocurrency due to the current market situation. Whereas some investors love the pullback, viewing it as a chance to double down on the crypto market for the long term. A few analysts predict that the crypto winter will likely end in the earlier months of 2023.

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Cardano Vasil Hard Fork? What Is It?

Cardano's Vasil Hard Fork

Cardano is a decentralized Proof of Stake (PoS) blockchain network designed to be a more efficient alternative to Proof of Work (PoW), just like Ethereum’s merge last month. Cardano’s ecosystem allows other developers to create decentralized apps, tokens, or other use cases for scalable blockchain networks.

Recently, Cardano implemented new functionality in their system through the Vasil Hard Fork, improving the network for all its users. The upgrade was to change the Cardano developer’s development experience using Plutus to create their decentralized applications.

What Is Cardano Vasil Hard Fork?

Cardano’s Blockchain implemented Vasil Hard Fork technology intended to increase the chain’s throughput by enriching smart contract capabilities and reducing the current costs. Plutus is Cardano’s native smart contract language.

Vasil will help deliver a second version of Cardano’s scripting language, Plutus (V.2). Plutus helps differentiate the code that drives the smart contracts, which runs on a user’s machine and remains off-chain from the on-chain validation of transactions.

How will Vasil Hard Fork help Cardano?

The recent upgrade on the Cardano blockchain network will enhance the ecosystem’s efficiency, block latency speeds, and transaction throughput. Moreover, the Vasil Hard Fork will see the implementation of a technique known as diffusion pipelining. This technique which will help to block propagation times and indirectly increasing the network’s transaction processing capabilities.

The Vasil Hard Folk will also introduce three essential Cardano Improvements (CIPs) named CIP-31, CIP-32, and CIP-33. CIP-31 will help raise a new reference input mechanism that will allow the DApps to access transactional output data without having to recreate it again. This will help make the entire process more streamlined and time-saving.

The CIP-32 is designed to increase Cardano’s decentralization levels by adding on-chain data storage features for the users. CIP-33 will help make the transactions cheaper by making changes to the system’s programming script, making the processing faster and reducing the fees.

Lastly, another improvement will be added, named CIP-40, as a part of Vasil. This will help introduce a new output transaction mechanism that will improve the block transmission without the full validation. The updates includes enhancing Cardano’s native smart contract programming language Plutus to a more functional advancement than its previous iteration.

Potential Effects on Cardano?

The Vasil Hard Fork was already released at the end of last month and the remaining updates are still taking place. The second phase of the Vasil Hard Fork will help redefine the Plutus cost model. This will directly affect the memory fees and processing powers required to help govern the Cardano’s native smart contracts.

Apart from working on the Vasil Hard Fork, the Cardano’s development team is working on the layer-2 scaling solution, the Hydra Head Protocol, which is capable of processing transactions from the Cardano network while using it as the settlement layer and core security.

At this point, the update from Cardano revealed that they had successfully addressed the issue with Hydra’s node framework. There isn’t a specific date for the current situation, but it will be out within a few months.

What the future holds for Cardano?

The future is quite uncertain, but it is sure that Cardano’s Vasil Hard Fork update will definitely impact new users and investors to move toward Cardano’s blockchain network in the coming time.

Since the start of 2020, Cardano’s cryptocurrency ADA has significantly witnessed dips in its transaction volumes. Even after the recent upgrade, it hasn’t helped increase ADA’s value in the cryptocurrency network.

Even after the switch to Vasil Hard Fork, there isn’t a boom in the price of ADA lately. The facts show that Cardano’s ecosystem has made tremendous strides over the past few years. These efforts show that the project is primed for big things in the years to come.

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Ethereum Overtaking Bitcoin Soon?

Ethereum Overtaking Bitcoin

Experts and researchers are now predicting that Ethereum overtaking Bitcoin in the Blockchain Market is turning out to be accurate. The main reason behind this prediction is Ethereum is moving towards Ethereum 2.0. It involves switching to a drastically less energy-consuming method of validating transactions known as Proof of Stake (PoS).

Ethereum is the first among other Blockchains to move from Proof of Work (PoW) to Proof of Stake (PoS). This could be a giant step for Ethereum but this will revolutionize Blockchain completely. In the beginning, it will reduce the global energy consumption required for mining.

Ethereum Overtaking Bitcoin Or Not?

Some experts and researchers are already recommending people who invested in Bitcoin to start selling them as soon as possible. Ethereum can revolutionize the complete Blockchain Industry with the change to Proof of Stake, which is expected to happen at the end of this month.

One of the other factors behind the leading Blockchains is the massive energy consumption involved. With “The Merge” happening with Ethereum’s switch, the energy costs will be down by 99.95%. It means that 10 million GPUs worldwide could be narrowed down to just a few thousand, resulting in a reduced energy crisis globally.

Indeed, Ethereum will be taking over Bitcoin if “The Merge” happens. With the cut in energy costs, this will result in Ethereum coming up front in the Blockchain Market due to the transaction costs going even cheaper than before.

Is Ethereum The Future of Blockchain?

Yes, it is more likely that the future will favor Ethereum overtaking Bitcoin. Ethereum’s merge with Proof of Stake (PoS) could open up the Blockchain industry towards an inward investment from traditional finance, which remained quite cautious in the past due to the carbon footprint associated with Proof of Work (PoW).

In Ethereum 2.0, ether will become a deflationary cryptocurrency, with the annual issuance of the cryptocurrency being slashed down by almost 90%. Investors are already lining up many ether call options for a possible bull run on Ethereum if The Merge goes through. With only over a month left, many crypto analysts are predicting the changes to come just after The Merge.

Ethereum will completely revolutionize the Blockchain Industry if The Merge goes through without complications. Apart from resolving the Global Energy Crisis due to mining, it will also reduce the other transaction cost that Ethereum had to bear.

Can Ethereum Flip Bitcoin Over?

The flipping can occur due to various causes and ways. With a limited amount of Bitcoin, some of its value is derived from its rarity and can also serve as an inflation hedge.

Comparing it to cash processors like VISA, which can handle around 60,000 transactions per second. On the other hand, Bitcoin’s Blockchain can handle roughly seven transactions per second. So, Bitcoin is too reluctant to function as a suitable means of exchange. Thus resulting in forcing people to look for a faster and more efficient system.

Ethereum has made it quite feasible to develop and build new valuable products and services. As a means of exchange, these developments on the Ethereum Blockchain will need some ether coin. This will indirectly raise the price and demand of the cryptocurrency.

Ethereum Overtaking Bitcoin: Final Thoughts?

All experts and researchers have pointed toward a major increase in the prices of Ethereum by the end of this year. The projected growth of Ethereum should be seen shortly after The Merge is launched. Many critics still think it is to create hype in the Blockchain Market, but that’s entirely wrong.

Users and Investors are more likely to shift towards Ethereum than Bitcoin after Ethereum’s transition. Only time will tell us if this is true, but the stakes are pretty high. There is little wait left to guarantee full insurance of this significant evolution of the Blockchain Industry.

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blockchain Blockchain development Crypto

Blockchain Bubble or Revolution? What’s The Future?

Blockchain Bubble

The recent fluctuations in the Blockchain Market have made us wonder whether the Blockchain Bubble is true or not. Current investors are already worried about their investments in the Blockchain market and the future. New investors are still curious if it’s an excellent time to put in money or not.

What is a Blockchain Bubble?

A bubble occurs when the assets are priced higher than their actual value in the market. Various factors are considered when valuing investments and assets, including demand, growth potential, earnings and others. However, in some cases, an asset’s value will increase more than expected.

Here are some of the circumstances under which a Blockchain Bubble forms:

– A surge in value attracts investors, who invest in the asset, further increasing its value.

– Rapid price increases are caused by excitement over a specific asset.

– More investors will increase the asset’s value, causing its price to exceed its intrinsic value.

Not all of the rapid price increases indicate a Blockchain Bubble. For example, asset price increases may occur due to recovery periods after a recession. The significant difference in the price increase can be justified by the factors used to evaluate an investment.

Are We in a Blockchain Bubble?

Currently, it isn’t easy to assess whether the values of different cryptocurrencies could be justified or if they are being overvalued due to the excitement created in the market.

Other traditional investments are valued based on their business performance or financial metrics, whereas cryptocurrencies are primarily based on factors like competition, cost of production and demand.

Bitcoin, one of the leading and most popular cryptocurrencies, has been said to have many bubbles over the past few years now:

– At the end of 2017, its price had reached over $13,000 before bursting.

– By mid of 2019, its value rose from $3,400 to $12,000 drastically.

– Finally in 2021, after continuous dips and peaks, Bitcoin reached an astonishing $61,000.

While Bitcoin’s current price has since fallen to its current value of $20,290 as of 31st August 2022, it is still higher than what other skeptics had imagined it would reach when it was first introduced. There are no specific reasons for the fluctuations in Bitcoin’s value since a majority of the value is derived from just speculation only.

How does the Blockchain Bubble Work?

In the Blockchain market or any other market, here is how the bubble forms and pops in similar ways:

– A bubble typically begins when investor changes their perspectives on a particular investment. In this case, a new investment opportunity may have been created by the invention of cryptocurrency.

– A potential gain from the investment will then be discussed with investors.

– Speculators will then begin taking risks, increasing prices and attracting even more investors. Using Bitcoin as an example, its rapid growth period from 2017 to 2019 illustrated this exact phase.

– There will be many new investors attracted to the bubble at its peak who believe there is little risk and plenty to gain. As a result, they may make unfounded investment decisions, further increasing the stock price.

– A few investors may lose money, causing others to sell their shares. The Snowball Effect occurs and while some investors may make huge profits, those who are too late to sell may suffer significant losses, making the investment price drop.

The Future of Blockchain?

The Blockchain market’s future is expected to triple by the year 2030. While more and more individuals, businesses and governments are taking an interest in cryptocurrencies, there is still a lot of skepticism surrounding the value of cryptocurrencies and how to implement balanced regulations.

People who have invested in Blockchains have identified benefits such as easy payment management, quick accessibility and working directly with individuals rather than the involvement of third parties like banks and other organizations. However, many people are still insecure about their assets and their volatility.

Factors like these are the reason for the mixed feelings surrounding the giant corporations investing in Blockchain and having government-placed regulations on the Blockchain market. Since many investors are still interested in using the cryptocurrency’s non-traditional system, they are even more skeptical of it becoming more corporate.

Moving further, individuals, businesses, or governments will need to work on a system that will help balance the need for regulations with the desire to keep the existing P2P structure of the Blockchain networks.

Bubble or Revolution: Final Verdict?

It is still difficult to determine whether the Blockchain Bubble will pop out or Revolutionize the world completely. Many people, including a lot of investors, are still unsure if they should invest in the Blockchain market or not.

When making investment decisions in the Blockchain market, individuals should consider all the pros and cons behind investing their money. For example, if a person wants to invest in cryptocurrencies just because they want to join the crowd. Instead, they should take more time to analyze if their investment would make sense in the long run or not. You never know what the future of Blockchain holds and whether the bubble will pop or not.

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Ethereum switching to Proof of Stake (PoS)?

The NFT market tokens representing Digital Art, Music and Videos soared to a whopping price of $44 Billion last year. This increased attention to the Ethereum Blockchain, where most of the NFTs were bought and sold. Hence, Ethereum came up with the idea to change from Proof of Work to Proof of Stake.

Unlike a banking system, a Blockchain network doesn’t have a central gatekeeper to verify the transactions. Instead, Bitcoin and Ethereum, two of the largest cryptocurrencies, both rely on a mechanism called “Proof of Work (PoW)” to maintain the ledger of transactions.

What is Proof of Work (PoW)?

It is the algorithm that helps secure many cryptocurrencies like Bitcoin and Ethereum. The concept behind its creation was to control third parties like banks or states involved in the financial ecosystem. Participants maintained a shared ledger, which is why Blockchains like Bitcoin and Ethereum moved their systems entirely to PoW.

Even more specifically, PoW solves the “double-spending” problem. If, for instance, the users double-spend their coins, this will cause inflation in the overall supply, resulting in the devaluation of everyone else’s coins and making the currency worthless. Hence, the Blockchain networks shifted completely to PoW, making doubling digital currency very difficult.

What is Proof of Stake (PoS)?

The problem was quite clear for Ethereum developers regarding the limitations with PoW. So, they are almost in the final stages of building the new solution, “Ethereum 2.0”. This upgraded version of Ethereum will produce a faster, intensive mechanism called “Proof of Stake (PoS)”. It will not only maximize the speed and efficiency but also lower the existing fees.

In Proof of Stake, staking is similar to a proof of work’s mining. It’s the process through which a network participant gets to select the latest batch of transactions to the desired Blockchain and, in exchange, earn some crypto back. The details may vary, but PoS Blockchains generally deploy a network of “validators” who contribute or stake their personal crypto in exchange to get a chance to validate new transactions, update the Blockchain and earn themselves a reward.

How does Proof of Stake work?

Basically, in PoS, the algorithm selects a pool of validators based on the number of funds each validator has. If you’ve chosen and the committee of “attesters” accepts your block. Ethereum claims that the critical advantage behind switching from Proof of Work to Proof of Stake is the economic incentive to play by the rules. If a node picks up a bad block or transaction, the validators face “slashing”, which technically means that all their ether is “burned”.

Proponents have claimed that Proof of Stake is far more secure than Proof of Work. Attacking a PoW chain, you only need half the computing power in the network. Whereas, for PoS, you need to control more than half the coins of the system. It is pretty tricky to achieve this with PoW.

A Risky Move for Ethereum?

Moving the Blockchain network from Proof of Work to Proof of Stake comes with risks. Thousands and thousands of Smart Contracts operate entirely on the Ethereum chain, with billions of dollars of assets at stake.

Proof of Stake has still not been proven onto our existing Proof of Work platforms. Ethereum has been among the top Blockchain networks, and it will be difficult for them to transit from PoW to PoS. The vulnerabilities would surface once the new system is widely released.

Future of Ethereum?

With Ethereum’s transition to this new protocol, we are still unsure how it will affect the Blockchain market. If this plan for Ethereum succeeds, then this will increase the price of Ethereum to booming numbers in the Blockchain market.

However, Ethereum will be launching its “Ethereum 2.0” mid-next month. Only a few days left as Ethereum is working on the final touches of their Proof of Stake model. With the crypto market being uncanny, no one is still sure what the future of Ethereum holds after their new model implementations. Let’s hope it goes the right way, as it will completely revolutionize the Blockchain market.

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