3rd December 2017 vs 3rd December 2018: Only XRP In Green
Everybody remotely taking notes about the crypto ecosystem knows that 2018 has been a disaster of a year for HODLers. Amongst the top coins, only XRP is in the green while the entire ecosystem seems like a sea of red.
The classic advice from investment managers is that timing the market – that is, making trades to capitalize on fluctuating stock prices – is not as important as time in the market. The advice to just HODL seems to cut across investing, whichever world you live in. The prevailing wisdom from financial advisors is that if we can keep hold of our stocks and carry on drip feeding in our cash over time, any losses will be smoothed over by this general trend line.
There is a prevalence of focus on the immediate short-term in cryptocurrency investing, but taking a longer view than the popular 24-hour volume or seven-day charts can provide some useful context. The last 12 months in cryptocurrency investing has felt like a worst-case scenario playing out in real time. After all, the prices of the top ten coins have slid by an alarming amount in the past 12 months. This time last year, investors were being swept up on a wave of day-by-day gains. By the end of Christmas 2017 huge value spikes saw prices spiral to their all-time highs.
Notably, XRP has been expanding adoption across all channels. This has cushioned its downward spiral in 2018. BCH, on the other hand, has had a disaster year, mostly owing to their hard fork.
The problem with crypto is that what starts as a flurry can turn into a blizzard. When prices tumble, miners sell coins to cover costs, institutions become less keen to enter and regulators find their skepticism vindicated.
Source:Bitcoin Exchange Guide
China’s Tsinghua University Partners with Ripple to Create Blockchain Research Scholarship Program
From the moment that Ripple first launched its platform, it has been looking for ways to spread cryptocurrency and their own products throughout the industry.
They have even managed to cross a major milestone as they established over 200 partnerships involving 40 separate countries. One of their most recent partnerships involves Tsinghua University, in an effort to launch a new scholarship program that will educate students in China.
While China has held a strict anti-crypto stance, the same has not been true of blockchain technology.
The program, which will be called the Blockchain Technology Research Scholarship program, is the combined venture of Ripple and the Tsinghua University Institute of Financial Technology (THUIFR). This university is one of the top schools in all of China, though THUIFTR was not started until 2017. It has been a collaborative effort between Institute for Interdisciplinary Information Sciences, PBC School of Finance, School of Software and Law School at Tsinghua University.
As students participate in the program, they will learn about the ins and outs of blockchain technology. On Twitter, THUIFR claims to have already hosted a seminar, titled “Innovation and Development of Digital Currency and its Regulatory Path.”
The partnership with Ripple will allow the program to launch in China, focusing clearly on the international regulations that govern the blockchain. Ivy Gao, the Director of International Cooperation and Development for THUIFR, said,
“Most importantly, I believe, this program will greatly help with their future research or career in the field of blockchain technology.”
The SVP of Global Operation at Ripple, Eric van Miltenburg, said,
Ripple has created an impressive reputation for itself as a major player in the fintech world. There are multiple banks using its xRapid product as their own blockchain solution, with more being added as the word spreads. However, it is perhaps the unique philosophy of Ripple’s platform and products that appeals to China, considering the substantial difference from that of Bitcoin’s ideology.
Their token has become the second-most valuable crypto asset, which could be due to the pattern of collaboration between financial institutions, governments, and universities.
According to the most recent data provided by CoinMarketCap, Ripple is presently being traded at $0.3175, ranking second by market capitalization.
Was November the Last Big Bitcoin Sell-Off? Trader Expects Slow Grind in 2019
By CCN.com: According to a trader and crypto technical analyst, November 2018 may have been the last sell-off of Bitcoin and a long consolidation period is expected throughout 2019.
Since experiencing a steep 13 percent drop on January 10 from $4,036 to $3,502, the Bitcoin price has been relatively stable in a tight range in mid-$3,000.
What Does Low Volatility Mean For Bitcoin?
While it seems as if the price of Bitcoin has been volatile throughout the past two weeks, the volatility of the dominant cryptocurrency occurred in a tight range between $3,500 to $4,000.
No major movements below or above key support and resistance levels were recorded, preventing any meaningful short-term price movement.
One trader said that if the trend of relatively low volatility in a tight low price range continues, the sideways action of Bitcoin will extend throughout the year, resulting in a long consolidation period.
“The longer this sideways action takes place the more I think the bottom is in. November was one of the worst monthly candles in history. It’s very possible that was the last of the major selling and now we’ll have a consolidation period that lasts most of 2019,” the trader said.
On Sunday, Bitcoin recorded a six percent drop against the U.S. dollar in a 24-hour period from $3,700 to $3,470. The asset has since recovered above the $3,500 mark and based on the performance of the asset in the last 48 hours, Bitcoin is expected to demonstrate stability throughout the week.
Hsaka, a cryptocurrency analyst, said:
Inside Bar; Low that was taken out (3480) holding as support; Continue leaning neutral here, can’t short HTF support, will wait for a break (even moreso when confluent with that CME gap).
A slow grind upwards in the first two quarters of 2019 could allow Bitcoin to establish a proper bottom and a mid-term trend reversal. If the price of asset recovers quickly in a short time period, as seen in the major sell-off of cryptocurrencies in November 2018, it can leave the asset class vulnerable to a large short-term correction.
With events that are considered as catalysts to fuel the momentum of Bitcoin in the first two quarters of this year including Bakkt and Bitcoin exchange-traded fund (ETF) far from being materialized due to the shutdown of the U.S. government, it has become more likely for the cryptocurrency market to demonstrate a low level of volatility in the upcoming months.
How About Alternative Crypto Assets?
Historically, alternative crypto assets, especially low market cap cryptocurrencies, have tended to perform strongly against Bitcoin when the asset is in a sideways market.
However, as seen in the performance of tokens and other major crypto assets in the past 48 hours, the stability in Bitcoin is unlikely to trigger short-term rallies for assets with lower volumes and valuations due to the current conditions of the market.
Some analysts believe November to have been the last sell-off for Bitcoin and expect a several-month-long consolidation period to occur.
Controversial Opinion Piece Says XRP Decentralization is Happening, Puts Proof of Work Coins with the Dinosaurs
During the last few months, Proof-of-Work (PoW) cryptocurrencies have been experiencing some issues such as 51% attacks. This is the case of Ethereum Classic (ETC) a top 20 digital asset that has been affected by this kind of attack. However, other networks such as Ripple continue to expand decentralizing their network even more.
XRP has been attacked for being a centralized digital asset. However, the cryptocurrency was able to overcome these critics and become the second largest digital asset in the market. However, XRP has still a long way for taking Bitcoin’s position as the largest cryptocurrency.
This is something difficult because Bitcoin (BTC) was the first cryptocurrency to be released to the market. XRP was launched a few years after, thus, it has fewer chances of becoming the most popular digital asset. Bitcoin has been using the PoW algorithm to verify transactions and keep the network secure. However, this process could eventually become obsolete as rewards drop for miners.
Every 210,000 blocks miners will be receiving fewer Bitcoins for their work. Unless Bitcoin price grows, they will eventually leave the market. Miners are located all over the world, but a large majority is currently in China, which is something that could heavily affect Bitcoin’s network in the future.
In general, Bitcoin mining activities were very profitable when the asset was close to its all-time highs back in December 2017. Several companies decided to set up mining farms and start mining Bitcoin. This resulted in the centralization of the industry in just a few hands. ASIC miners used to process Bitcoin transactions are very expensive and can be acquired in bulk just by a few companies.
XRP uses Distributed Agreement Protocol, also known as Consensus Protocol. In this way, XRP avoids the problem of double spending in a much more efficient way than Bitcoin does. The distributed agreement protocol works with validators that control that the network is operating in a healthy way.
80% of XRP validators must support and vote for a change during a period of two weeks before it goes into effect. This is a better way to improve the network compared to Bitcoin or other cryptocurrencies in the market. If the change is not agreed by these validators, then it will not go into effect.
If validators want to disrupt the normal flow of transactions in the XRP ledger, users would have to agree on a new list that would allow the network to be operative.
David Schwartz, the Chief Technology Officer (CTO) at Ripple, commented about this issue:
“This has never been a problem for any blockchain in the past, and it’s required by every blockchain when previous agreements fail to be sufficient. Decentralized systems fundamentally allow interoperation only among people who continue to agree on a large number of things.”
He went on saying that the XRP has the lack of incentives for this situation to happen. Honest participants want the network to properly work and have all the interest aligned.
In this way, XRP looks better suited than other PoW networks to resist attacks by collusion or other bad actors. Furthermore, XRPis able to process more than 1500 per second while Bitcoin or Ethereum (ETH) could just support 16 transactions per second (TPS). Finally, the fees paid for transaction BTC and ETH are much larger than XRP.
Ripple is also growing in the market. It has reached more than 200 companies working on top of the RippleNet. Additionally, there are new products such as xRapid that are going to be embraced by financial institutions and banking firms to make cross-border payments in a much easier and cheaper way.
At the time of writing, XRP has a market capitalization of $31.56 billion, this is half of the market cap that Bitcoin has ($62.19 billion). According to Yahoo Finance, XRP has a price per coin of $0.31 while Bitcoin is being traded around $3,550.
Source: Bitcoin Exchange Guide