The crypto markets are in summiteers mood. Everywhere prices are reaching new all-time highs, and an end to the rise does not seem to be in sight yet. What happens here – and, above all, why does it happen? Does it have anything to do with the new Blocksize compromise?
What a Monday morning. Earlier this year, I was delighted that Bitcoin kurs prognose broke through the $ 1,000 mark, recently I joked that we would be in Luther’s year soon if the Bitcoin price were a year, and now, mid-late May we at almost 2,000 euros. Crazy. When Bitcoin kurs prognose takes off, it is almost always more powerful than one would expect.
I wonder how many millionaires are reading this article. A year ago, a bitcoin cost $ 442. Anyone who had and kept 200,000 euros in bitcoins at this point should now be a millionaire. Ether was worth $ 14 a year ago. Anyone who had 70,000 euros in ether at this time is now also a millionaire. There are a lot of new millionaires and multimillionaires in the crypto universe right now.
What is happening? Or, better said, why are the crazy courses happening? Why right now? And are we already in the middle of the bubble – or is it only building up?
Let’s start with the “why” and with Bitcoin. One reason for the price increase may be that industry representatives from Bitcoin met at Consensus2017, the first trade show in New York, to sign a new scaling agreement. According to a leak that has been described by several anonymous sources as presumably authentic, the bosses of large companies want to pull through Segway + 2MB until September. That could be the signal the markets have been waiting for. Here later, as soon as it is official.
On the other hand, the Bitcoin Kurs price has been rising since the end of 2016, and no matter what turn the Blocksize crisis has taken since then, it just kept it going. The most likely explanation would be that the markets are not so far interested in scaling. The deciding factors are: we had halved in the summer of 2016 (which inevitably leads to rising prices), Bitcoin is being used more and more to pay, such as freelancers in Africa, South America, and Eastern Europe, and the sound old Fiat currencies This world is getting worse than better.
Bitcoin is in short supply. With nearly $ 2,000, Bitcoin is worth a lot more than an ounce of gold has ever been ($ 1,824 an hour), but one ounce is just 31.10 grams or 0.0311 kilograms.There are supposed to be more than 160,000 in the world Tons of gold, more than 5 billion ounces, while there are only 21 million bitcoins Kurs. If the world’s 10 million millionaires want all the bitcoins, there are just two for each.
And at Ethereum? What’s going on here? Ethereum seems to be more and more of a business blockchain for many large companies. There are just so many things you can do with Smart Contracts, and the big question of how Ethereum wants to scale this madness could be explained by the increasing involvement of large companies in the fact that Ethereum nodes are enormous and on server farms. Here, too, Consensus2017 has contributed with the announcement of more than 80 new members of the Ethereum Enterprise Alliance. Also later (maybe) more.
Bladder? No bubble? Or is it?
In a way, it’s undeniable that cryptocurrencies are in some bubble. Given 3 or even 4-digit price gains (in percent), it would be absurd to say otherwise. And this bubble not only covers Bitcoin and Ethereum but pretty much every other coin as well: Litecoin, Dash, NEM, Ripple, Monero and much more. There are now 30 coins with a market capitalization of more than $ 100 million!
However, this does not say anything about how advanced the bubble is. Has it just begun – or is it already reaching its zenith? Will the Altcoin bubble burst and empty into Bitcoin? Or is it creating an ecosystem in which Bitcoin, as digital gold, will remain the computing unit of the crypto markets – but will other coins around it establish themselves as a means of payment or gas for smart contracts? Is the redistribution of capital going from fiat money to crypto money going to both Bitcoin and other coins? If so, which will it be?
And if the bubble of Altcoins in Bitcoins, and also that of Bitcoin in Fiat burst – at what price it will do that? And will she, like the other bubbles in front of her, follow a much more significant bubble?
These are so many questions that I can not answer in any way. But we will see how it goes on, and it will be exciting. At least that’s for sure