By CCN Markets: Bitcoin, the asset written off by many prominent economists after an enormous fall last year, has surged by more than 115% in the first half of 2019. The world’s largest cryptocurrency in May established a year-to-date high of $9,090 on Coinbase exchange. The price corrected downwards by more than $1,000 afterward. However, the drop did not shake bitcoin’s long-term bullish bias, at least according to Barry Silbert, the founder, and CEO of Digital Currency Group. Silbert told Bloomberg that crypto spring has arrived. He’s been in the crypto market since 2011 and is used to the volatility.
“[We’ve] been through quite a roller coaster. Price has gone down 80% four times. But in the past four times, the price has hit record highs afterward. And so if you look at the price for bitcoin, it looks like perhaps we’re coming out of the crypto winter and we’ve entered the crypto spring.”
According to Silbert, the market has responded positively to apparent demand from venture capitalists and institutional investors. The crypto bull noted that none of the bitcoin’s previous price rallies had the same optimism.
“If you compare the infrastructure today relative to where it was right before the last bitcoin bull market in 2017, it’s really night and day. And so now the question is not if institutional money is going to move into the asset class, but the question is really when.”
In retrospective, the surging demand for bitcoin tokens recorded in 2017 was mainly because of the so-called ICO-mania. People purchased the cryptocurrency to use it as a tool to invest in blockchain startups. However, as more than 90% of them failed, they started recovering their losses by selling the bitcoins they had raised through crowdfunds. The move eventually brought the price down by more than 75% in 2018.
But, as Silbert noted, the market has already moved away from the ICO-mania phase.
Top 3 Coins Under $1
We all know that the price of a cryptocurrency is largely related to the token economics of the coin – however, people still love to look for psychological bargains under $1. This is a typical human practice as we always tend to look for bargains and buying a coin under $1 seems appealing to many investors with small initial investment sizes.
Although there typically is no advantageous benefit in buying these tokens under $1, as opposed to buying tokens above $1, there is still a great feeling when you own a few thousand of a particular cryptocurrency.
Here is a list of our top 3 coins under $1 and whey we think they are great buys!
The top coin on this list is Ripple XRP, 1.73% – currently trading at a price of $0.41 and is ranked in 3rd position in the market cap with a market cap value of $17.50 billion.
Ripple pride themselves on providing cross-border international payments with significantly reduced costs and increased transaction times. The project team has managed to amass a partnership list that extends to over 200 banks and financial institutions that are using their remittance system.
Ripple has seen a rather muted trading period during 2019, not being able to make much movement above the $0.40 level which means it still has much room to recover in relation to the rest of its cryptocurrency peers – which is why we think it is an attractive option to buy underneath $1.
If Ripple can surge and reach its previous ATH price of around $2.76 – it will surge by a total of 550% from the current trading price – a very juicy return.
The second project on this list, Stellar Lumens XLM, -1.35%, comes in at the 10th ranked position on the cryptocurrency rankings by market cap, as it currently holds a $2.47 billion market cap value. Similar to Ripple, Stellar has also seen a rather muted period of trading during 2019 having pretty much traded sideways from the 2019 open price.
However, if the bulls can regroup and start the surge back toward the previous ATH for Stellar, it will increase by a total of 600% from the current market cap value – another great potential return.
Stellar is a project similar to Ripple in the sense that it provides a solution for cross border, low fee and instant transactions. However, Stellar is different in the sense that its platform is designed to bring together payment systems, banks and people.
3. Basic Attention Token
The last coin on this list, Basic Attention Token BAT, -3.59%, comes in ranked at 27th position on the top cryptocurrency projects by market cap as it currently holds a $414 million market cap value. Basic Attention Token has had a very strong year compared with the rest of the coins on this list, after having been able to increase by a total of 145% from the yearly open price.
BAT is the cryptocurrency token that will be the power behind the Brave browser. The team over at Brave want to revolutionize the way that adverts are delivered to viewers through the way they are delivered through their dedicated browser, Brave. The team will be giving a larger proportion to advertisers and viewers of adverts can also get a cut too – all powered through BAT.
If BAT was to surge toward its previous ATH price it would increase by a total of 165%. However, as this is a relatively young project, it has the scope to increase much further than its previous ATH. This could possibly make BAT the coin with the best potential rate of return on this list!
Crypto market update: Bitcoin climbs further as the others follow suit
- BTC/USD went up from $8,975 to $9,340 this Monday.
- Bitcoin SV (BSV) was the biggest winner of the day with a 5.65% increase.
Top three coins
- Bitcoin (BTC): The price went up from $8,975 to $9,340 this Monday, charting a 4.07% increase. The bulls managed to break past the $9,000 level and will be next looking at conquering the $9,500 level.
- Ethereum (ETH): ETH/USD went up from $268.55 to $274.25 during this Monday.
- Ripple (XRP): XRP/USD bulls had a productive day this Monday as it went up from $0.428 to $0.448. The $0.448 level has thwarted the price before and the bulls will need to overcome bearish resistance here to take the price past $0.448.
Biggest winners and losers (top 20 coins)
- Bitcoin SV (BSV) went up by 5.65% and is currently priced at $225.35.
- Cosmos (ATOM) went up by 5.25% and is priced at $7.02.
IOTA and Litecoin were the only coins in red among the top 20.
- IOTA (IOT) went down by 2.33% and is priced at $0.439.
- LItecoin (LTC) went down by 1.88% and is priced at $134.44.
British Politician Calls Bitcoin “A Right-Wing Nightmare,” Warns “Inevitable Crypto Crisis Lurking Around the Corner”
Alex Sobel, Labour and Cooperative MP for Northern English district of Leeds North West, has called Bitcoin, “…a right-wing nightmare which facilitates tax evasion, money laundering and environmental degradation.”
He has also warned that, “…the Left has continuously failed to engage with questions of finance, technology, and business…(and) Getting wise to the con-artistry and grift of the crypto movement, and countering its ideological appeal, is necessary…to deal with the inevitable crypto crisis that is lurking around the corner.”
Sobel, who sits on the Environmental Audit Committee, the Backbench Business Committee and who previously ran Social Enterprise Yorkshire, made the comments in an article called “The Bitcoin Scam” he penned for Tribune Magazine in late May.
In the article, Sobel says that, though neoliberalism and nationalism are commonly understood to be the “primary ideological opponent(s) of socialism,” “anarcho-capitalist” ideology has been boosted by the advent of Bitcoin:
“…(L)ibertarians or anarcho-capitalists…believe that the state should be abolished and replaced with a world of pure property rights…For much of its existence this ideology was relegated to subcultures and the political fringe. But, in 2009, it had a major breakthrough: Bitcoin…a digital cash or commodity system whose adherents promise an escape from banking surveillance, fiat currency, inflationary monetary policy, and taxation.”
Bitcoin proponents laud the invention for enabling “uncensorable” and “immutable” transactions via an expensive and energy- consumptive process called “proof of work.”
Bitcoin’s many network participants all maintain a heavily-encrypted copy of the entire Bitcoin transaction history and expend copious electricity competing for a prize of bitcoins.
Participants believe the network and transactions are maintained by “peers” and not by “venal bankers,” Sobel writes.
But the notion that cryptos have so far been used for anything other than criminal finance, Sobel writes, is “laughable.”
As well, crypto’s current bid for legitimacy shifts them “…ever closer to the worlds of politics and finance — the realms its early adopters argued they were escaping.”
Meanwhile, while processing relatively few transactions, Bitcoin’s energy consumption is equivalent to that of “medium-sized nations”:
“You may find it helpful to think of the process of bitcoin mining as akin to millions of computers expending ever-increasing amounts of energy buying quintillions of lottery tickets with one winner every ten minutes. The amount of power wasted on useless duplication of effort is staggering. At times, power demand for bitcoin alone has surpassed that of nations the size of Ireland or the Netherlands. You don’t have to be an environmentalist for this to strike you as less than ideal.”
As the general public’s taste for a carbon-heavy network that enables criminal finance may have faltered, calls for “blockchain, not Bitcoin” have concurrently increased.
But Sobel notes that “blockchain” and cryptocurrencies have been conflated in order to ensure a continuous flow of investor cash into cryptocurrency projects of questionable worth:
“The accidental (and often intentional) effect of all this earnest blockchain noise is to sustain interest and hype in the adjacent technology of cryptocurrencies. From the perspective of the grifters, charlatans, and scammers, it adds a much-needed veneer of respectability that functions to disguise more nefarious activities.”
Meanwhile, Sobel joins a growing list of detractors, including David Gerard (who fact-checked Sobel’s article), claiming there’s no-there-there when it comes to blockchain:
“…(T)heir advocates would argue, while cryptocurrencies might be flawed and wasteful, the underlying technology — blockchain — is a world-changing innovation. This, sadly, is also untrue. Blockchain is a solution in search of a problem. Google ‘blockchain uses’ and you’ll discover a huge list of test cases. Upon closer inspection, few will have moved beyond trial phase and those that have often do not make use of distributed consensus at all.”
Sobel gives as an example, “One frequently-championed blockchain project involved organising aid for a Jordanian refugee camp.”
Many firms have looked into how blockchains might be cost effective in places otherwise lacking in infrastructure.
In the case of the Jordanian project, Sobel writes:
“The claim was that the company, Building Blocks, was surpassing the inefficiency of food aid distribution by creating a system that allowed refugees to easily purchase food. Instead of issuing tokens or pre-paid cards to track family purchases, the scheme tracked individual spending by uploading biometric data to their blockchain. To purchase goods, residents of the camps had their iris scanned.”
Turns out this project was just doing a regular database, Sobel claims:
“But, despite the hype, it was later revealed that the system ran on a ‘permissioned blockchain’ with a central authority who controlled use of the network — and who could rewrite the database…The refugees in the Jordanian camp were not ‘on the blockchain’; they were merely listed in a centralised database.”
And while well-intentioned libertarians have envisioned a cryptocurrency-underpinned Utopia, their prized currencies appear to be majority-owned by a set of elites, Sobel writes:
“The libertarians may cry freedom and equality, but their world is the opposite. A Citigroup analysis of Bitcoin from 2014 found that ‘47 individuals held about 30%, another 900 held a further 20%, the next 10,000 about 25% and another million about 20%.’ No country on earth has such an unequal distribution of assets and wealth.”
The MP ends by advising politicians to be wary of crypto-lobbyists door-knocking for the sector:
“So, when the crypto lobbyists show up in parliament with a PR budget, the Labour Party should be paying attention. What they’re selling is an expression of political reaction, thoroughly intertwined with offshore tax avoidance, indelibly linked to black market activity, and implicated in environmental degradation. As for blockchain, in every proposed implementation, the merits of the technology are invariably oversold — with cheaper, more robust, database solutions readily available.