Bitcoin Price Soars to New All-Time Record High Above $4,600

The number one digital currency has gone and done it again. The bitcoin price has scaled to over $4,600 for the first time, pushing its market cap value to over $76 billion.

At 13:54 UTC, on the 29th August, the bitcoin price was recorded at $4,602. As a result, the combined market value soared to $164.4 billion.

At the time of publishing its price has dropped to $4,542. However, it marks a significant time for the digital currency.

Since the beginning of 2017, the bitcoin price is up by around 350 percent from roughly $1,000 on the 1st January. It has since quadrupled in value. On the 13th August, bitcoin finally managed to scale the $4,000 mark amid strong Japanese interest. Geopolitical turmoil in North Korea has also impacted its price as investors continue to consider it as a safe haven.

The week prior to that the bitcoin price had re-scaled the $3,000 mark when it reached $3,200 for the first time. Since then it has continued its upward trajectory, pushing the currency to new heights.

Ethereum Scales $360

Ether prices have also surged to new heights not seen in two months.

At the time of publishing, ethereum is trading at $369, pushing its market cap to $34.8 billion. In 24 hours it has risen by 7.30 percent whereas in seven days it has increased by 17.24 percent.

As can be seen from the chart below, ethereum’s price dropped to a low of $149 on the 16th July. Since then it has steadily been climbing up in price back to its current listing. Prior to dropping to $149, ether prices were trading below $400, at $391. It has yet to re-scale to that previous high. However, with its steady price gains it’s expected to see new heights.

Litecoin Climbs Above $60

Fifth-placed litecoin has also recorded new highs. Strong trading has helped to push its price over the $60 mark for the first time.

This price rise is due to increased trader interest from Japan and Korea. According to a report, Korean exchange Bithumb was responsible for over 20 percent of trading in litecoin in the past 24 hours.

At the time of publishing, litecoin is trading at $62.51, with a market cap value of $3.2 billion. In the past 24 hours its value has decreased by 1.07 percent. Meanwhile, in seven days its has risen by 34.13 percent.

At its peak, litecoin was trading at $64.92 on the 28th August. Yet, considering litecoin was trading just above $4 at the beginning of 2017 this is a significant milestone. It remains to be seen how much further the currency can go.

Charlie Lee, the founder of litecoin, recently took to social media to express his delight.

New Price Heights

What we are witnessing now, however, is just the start. According to Ronnie Moas, Standpoint Research founder, he predicts great things for the market.

Back in July, Moas said that bitcoin would reach $5,000 by 2018. He also said that ethereum would rise to $400 whereas litecoin double to $80.

At the time Moas said:

“$5,000 could happen in a few months. It’s only starting to gain traction right now. It’s starting to spread like wildfire right now.”

He determined that its price would go up as demand increased for its coins. At present, 16.5 million coins out of the capped 21 million has been issued.

Since making his prediction in July, Moas has increased the value to $7,500. This was after the bitcoin price scaled $4,000. He believes, though, that by 2027 each unit of bitcoin will be worth $50,000.

Furthermore, Moas thinks that the combined market cap will reach $2 trillion in 10 years. At a conservative estimate, he thinks that one percent of the $200 trillion global market will be invested in cryptocurrencies.

He said:

“A lot of people say there is a bubble out there. I see a bubble when you get down below the top 50 cryptocurrencies. There are more than 800 names right now. In my view, what happens outside the top 50 is irrelevant.”

Whereas, Aurelien Menant, CEO of regulated digital currency exchange Gatecoin, has said in the past:

“I would not be surprised to see the bitcoin price doubling again to around $6,000 by the end of the year.”

One bullish analyst thinks bitcoin’s price will reach $15,000 by the end of 2017. Even though there are only four months left of the year veteran trader masterluc has great confidence in bitcoin. Masterluc is of the opinion that bitcoin will continue its bull run into 2019. At which point he thinks that its worth will between $40,000 and $110,000.

Long-Term Price Heights

Others, however, have been thinking long-term for the currency’s future. So much so, that Dennis Porto, bitcoin investor and Harvard academic thinks it will scale $100,000 by February 2021. He thinks this is possible by simply following Moore’s law.

However, Kay Van Petersen, Saxo Bank analyst thinks it will reach $100,000 by 2027. Many may have confidence in Van Petersen’s prediction considering he correctly predicted when bitcoin would reach $2,000.

Some less bullish estimates include one from Tom Lee, a strategist at Wall Street firm Fundstrat. He thinks that bitcoin’s worth will be between $20,000 and $55,000 by 2020.

In a report, Lee said:

“We believe one of the drivers [of bitcoin] is crypto-currencies are cannibalizing demand for gold. Based on this premise, we take a stab at establishing valuation framework for bitcoin. Based on our model, we estimate that bitcoin’s value per unit could be $20,000 to $55,000 by 2022.”

At the time Lee’s prediction was considered bullish. However, since then others have made bigger predictions for the currency.

It remains to be seen who is right. Yet, at present it seems that the market will continue its upward trajectory to reach new heights.

Caution Urged

Interestingly, Llew Claasen, the executive director at the Bitcoin Foundation, has urged investors to be cautious with their investments.

Speaking at a recent conference in Africa, Claasen spoke about the potential bitcoin has in the continent. Yet, he stated that users should only invest what they can afford.

He said:

“To be honest bitcoin is not a great form of cash right now. Don’t think of it as cash, think of it as a digital form of gold that enables you to save outside of the current financial climate.”

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Morgan Stanley: We Don’t Expect Cryptocurrencies to be Fully Disruptive

Leading global financial services firm Morgan Stanley has given its view as to how disruptive cryptocurrencies are going to be to fiat monies.

According to the bank, the crypto-revolution is not going to replace traditional currencies.

In a report, Morgan Stanley said:

“We think that cryptocurrencies as a group are likely to see some adoption outside of the incumbent financial system, but we do not expect them to be fully disruptive.”

In a ‘Fintech Gauntlet chart,’ Morgan Stanley has illustrated that disruption is possible, but it will be slow to take place. However, the bank suggests that only through regulation will cryptocurrencies be capable of gaining trust among the people. This will also enable them to enter the financial system.

The bank adds that digital currencies such as bitcoin are acting more as assets than as a way of transacting with.

It stated:

“With high volatility, low acceptance, relatively slow transaction times, and negligible fraud/transaction validity advantages (at least for now), bitcoin (and all cryptocurrencies) are functioning more like assets than true currencies or transaction mechanisms.”

High Electricity Use

One thing that is often debated is the amount of electricity required to mine each bitcoin. When bitcoin first appeared all that was required to mine it was a simple home computer.

However, as the mathematical problems to unlock new bitcoins became more complex to solve, networks with greater power than home computers were set up to mine the coins. As a result, this requires the use of more power and electricity.

According to Morgan Stanley, in the early days of bitcoin the energy generated could power a small power plant. Fast-forward to 2017 and the power generated is more than enough to power one million homes.

Additionally, as reigning networks don’t require huge amounts of electricity to function, it will be interesting to see how cryptocurrencies continue to mature.

Bitcoin Acceptance is Shrinking

This isn’t the first time that Morgan Stanley has made a statement regarding the crypto market.

In July, the bank said that bitcoin acceptance among top merchants was on the decline. In a research note to analysts it said that ‘bitcoin acceptance is virtually zero and shrinking.’

According to the bank, in 2016 the cryptocurrency was accepted at five of the top 500 online merchants. Yet, in 2017 that number had dropped to three. Of course, while the numbers may hardly be drastic, it does give some insight into what merchants are thinking. This is that accepting the digital currency may not be worth it.

It’s believed that this drop is down to the fact that people are more likely to hold on to their coins when its value goes up, rather than spend them.

The analysts said:

“The disparity between virtually no merchant acceptance and bitcoin’s rapid appreciation is striking.”

Overstock’s Confusion

Online retailer Overstock is confused. Confused by the fact that so many online companies don’t accept bitcoin as a payment option.

In July, Jonathan Johnson, the president of Medici Ventures, the venture capital subsidiary of Overstock, said that there had been a ‘modest’ uptick in the number of bitcoin transactions on the site. He also added that it was ‘crazy that so many retailers don’t accept bitcoin.’

One of the reasons may be down to the fact that retailers aren’t willing to pay for the costly transactions of bitcoin. Yet, Johnson believes this is irrelevant.

He stated:

“The cost of accepting bitcoin is very low. It’s actually cheaper for us to complete a bitcoin transaction than it is to complete a credit card.”

When Overstock first began accepting bitcoin in 2014, the company kept 90 percent of bitcoin and converted 10 percent back into cash. Now the company keeps 50 percent in bitcoin.

Such is Overstock’s commitment to the advancements of digital currency acceptance that the firm now accepts over 40 cryptocurrencies. Earlier in August, the company announced that it would allow customers to use major digital currencies such as ethereum, litecoin, Dash, Monero and bitcoin cash to buy online from Overstock’s nearly four million products. By integrating with ShapeShift, the world’s leading instant digital asset exchange, Overstock will be able to convert the cryptocurrencies into bitcoin.

Patrick M. Byrne, CEO and founder of Overstock, said:

“Overstock is pro-freedom, including the freedom of individuals to communicate information about value and scarcity without relying on a medium created through the fiat of unaccountable government mandarins. For that reason, we have been an early proponent and adopter of cryptocurrencies.”

Increasing Bitcoin’s Acceptance

Even though there are a handful of online merchants who accept bitcoin for payments such as Starbucks, Subway, Dell, Expedia and Microsoft, many would like that number to rise.

So much so that cryptocurrency fans launched a petition on Change.org urging Amazon to accept the digital currency. At press time, on the 25th August, there were 5,380 supporters of it with a goal of reaching 7,500.

Whereas CoinGeek, a bitcoin and blockchain news site, sent $100 in bitcoin to the financial directors at 20 of the top online brands. These included Alibaba, Amazon, Tesco, Staples, Uber, MacDonalds, Netflix, Airbnb, American Airlines, LVMH, AT&T, CVS Health, Tesla, Apple, FedEx, John Lewis PLC, Spotify, BMW and Red Bull.

Of those companies Airbnb was the first one to take up the offer in July. However, since then two other companies have followed suit: AT&T and American Airlines. Of course, this doesn’t mean the companies will automatically start accepting bitcoin. In fact the financial directors may simply just be taking the free coins on offer. Hopefully, though, in the not-so-distant-future more organisations will jump on board.

As Johnson said:

“I don’t know why a CEO wouldn’t want to make it easier for folks to spend money.”

Still a Long Way to Go

While the crypto market may be making an impact it still has a far distance to travel if it wants to disrupt finance. And yet, steps are clearly being made. The saying ‘Rome wasn’t built in a day,’ is very apt here and can certainly be applied to cryptocurrencies.

The finance world is witnessing a change in how people conduct their day-to-day finances and given time the digital currency market could replace incumbent networks.

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10 Digital Currencies Now Have Market Values Totalling Over $1 Billion

The number of digital currencies that have exceeded a market value of $1 billion is 10 with values ranging from $1.3 billion to $70 billion.

The top 10 cryptocurrencies with market values exceeding $1 billion include bitcoin, ethereum, ripple, bitcoin cash, IOTA, litecoin, NEO, NEM, dash and ethereum classic.

 

Bitcoin, the Number One Ranking Currency

In first place is bitcoin with a market value amounting to $70 billion. At press time, it is trading at $4,245, which has seen a 5.42 percent rise over the past 24 hours and a 27.03 percent increase in the last seven days.

After recently scaling the $4,000 mark, there is still huge demand for the digital currency. This is despite the 1st August user activated hard fork, which saw the creation of bitcoin cash. It remains to be seen how far bitcoin can go, but many are predicting it can easily reach $5,000 and even higher.

Ethereum Drops Below $300

Second place ethereum had attained the $300 mark again after flirting with the price for some time last week. Now, it’s trading at $297 with a 0.68 percent rise in 24 hours and 11.23 percent increase in seven days. Its market cap is worth $28 billion.

At one point, it looked as though ethereum may push bitcoin off the top spot as it steadily gained on the digital currency. Now, though, that doesn’t look likely. The currency has come a significant way since the beginning of the year when it was trading at $8.24, according to CoinMarketCap.

Ronnie Moas, Standpoint Research founder, believes it can go much further. He’s predicting that by 2018, ethereum’s price will be listed at $400.

Ripple Maintains Third Place

At the beginning of August, Ripple has lost its third place position to newcomer bitcoin cash; however, it has since reclaimed the third ranking spot.

Currently trading at $0.169272, it has a market value amounting to $6.7 billion. Over 24 hours its value has increased by 0.47 percent, but within seven days it has dropped in price by -5.95 percent. The digital currency is doing well to maintain hold of third place, but for how long?

Newcomer Bitcoin Cash Falls into Fourth

Bitcoin cash is the newest digital currency to enter the market. It’s also one that has entered the top 10 field so soon after its launch.

Created by supporters who wanted a solution to bitcoin’s scaling issues, bitcoin cash has garnered support since it entered the scene on the 1st August.

At the time of publishing, it is trading at $299, which has seen a slight drop in value over 24 hours of -2.96 percent. Yet, it has increased by 4.02 percent in the past seven days. Ranking third when it first came on the scene, it had a market value of nearly $12 billion. Now, though, it’s currently sitting at $4.9 billion.

At its peak, bitcoin cash was trading at $727 on the 2nd August. However, the chart below indicates a steady decline in price.

At its lowest, bitcoin cash was trading at $201 on the 5th August. After making it easier to find blocks for the digital currency its price peaked up slightly, but it has yet to see $700 figures again.

IOTA Grabs Fifth Place, Pushes Litecoin into Sixth

IOTA has shown some positive returns on its price in August. As such its price has steadily increased over the month. At the time of publishing, the digital currency is trading at $0.885418 and has seen an 18.37 percent in the past 24 hours. Over seven days, its value has increased by 87.29 percent.

This surge in value is believed to be down to the fact that it has announced collaborations with several groups such as a non-profit organisation helping refugees. Joining the $1 billion club on the 4th August, IOTA currently has a market value of $2.461 billion.

Litecoin is Close Behind in Sixth

Sixth place litecoin is close on the tails of IOTA with a current market value of $2.401 billion. It’s currently trading at $45.66 and has seen a -0.70 percent in 24 hours and -0.33 percent in the past seven days.

Over the past couple of years the price of litecoin has remained within the $3-5 range. However, it wasn’t until April 2017 that its price increased. This was helped along by the activation of SegWit on its network. The support of litecoin on Coinbase also played a role. At its highest litecoin has achieved over $50.

Moas is of the opinion that by 2018, litecoin could easily see it trading at $80. It remains to be seen whether or not the digital currency achieves this price, but it is steadily rising in price, which is giving confidence to many of its traders.

‘Chinese Ethereum’ NEO Takes Seventh

Formerly known as AntShares, NEO – known as the Chinese Ethereum – has a market value worth $2.3 billion. Since undergoing a rebrand the digital currency has soared in value.

In the past 24 hours, it has seen a 1.17 percent increase, but over the past seven days its value has jumped by 154.80 percent. It’s trading at $46.63.

This chart, alone, indicates how far NEO has come in 2017.

NEM Takes Eighth Place

Grabbing hold of a $2.094 billion market cap value is NEM. It’s currently trading at $0.232741, but has seen a -12.14 percent decrease over the past 24 hours and a -13.89 drop in seven days.

As can be seen NEM has experienced a surge in price over the first half of 2017. As we continue into the second half it remains to be seen if the digital currency can produce a higher price.

Dash Falls into Ninth

With a market cap of $1.471 billion, Dash is currently sitting in ninth position. At the time of publishing it’s trading at $196, but has seen a -3.43 percent drop in 24 hours. Over seven days, however, its value has risen by 1.29 percent.

On the 6th July, its value was trading at $222 when its market value was listed at $1.648 billion.

Ethereum Classic Makes Number 10

In tenth place is ethereum classic with a market cap value of $1.3 billion. Even though this is the original ethereum before a hard fork took place, which saw two ethereum coins, the community hasn’t shown too much support for the original version.

At the time of publishing this altcoin is trading at $14.14, which has seen a -1.81 percent decrease in 24 hours and a -7.81 percent drop in seven days.

As shown from the chart above, it was back in June when ethereum classic recorded a high of nearly $23, helping to push its market value to $2.1 billion.

Of course with the market producing such changeable values the top 10 could easily change, pushing some down and others not mentioned up. Who knows who will be next to join the $1 billion club.

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