Posted on

JP Morgan Analyst: Bitcoin (BTC) Trading Above Intrinsic Value

JP Morgan Bitcoin BTC Price 2019

Analysts at Wall Street investment bank J.P. Morgan Chase believe that the price of Bitcoin has soared above its intrinsic value throughout 2019’s rally.

According to new details emerging from the banking giant, JPM strategists are claiming that Bitcoin is trading above what they consider to be the digital assets intrinsic value, giving investors some pause as to whether the market will heed such a metric. Similar to the argument for gold and precious metals, Bitcoin and cryptocurrency has struggled with the tug-of-war concept over what constitutes ‘intrinsic value.’ For the folks on Wall Street–regardless of continued price movement–the price of BTC has seemingly outstripped what it offers in terms of industry value.

Bloomberg was the first to report the JPM news on May 20, making the claim that BTC is possibly entering a similar period of trading that accompanied the bullish rally to end 2017. Similar to current market conditions, the JPM analysts found BTC to have surged well beyond its intrinsic value by the time the price began to collapse in December 2017.

Three month climb for Bitcoin (BTC). Image courtesy of CoinMarketCap

According to JPM strategist Nikolaos Panigirtzoglou in a note to investors on May 17, Bitcoin should be considered as a commodity, thereby allowing cost of production calculations using the estimates of mining electricity and hardware costs as a factor in valuation.

Panigirtzoglou wrote,

“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

Despite pounding the table over Bitcoin exceeding its calculated intrinsic worth, the strategists at JPM  caution that valuation can be a subjective quality, particularly through the lens of retail investors and market behavior.

“Defining an intrinsic or fair value for any cryptocurrency is clearly challenging. Indeed, views range from some researchers arguing that it has no fundamental value, to others estimating fair values well in excess of current prices.”

Previous years would have brought about investor skepticism towards the views of JP Morgan Chase in relation to cryptocurrency, given CEO Jamie Dimon’s acerbic comments towards Bitcoin. However, the investment bank has had a change of heart in the industry of cryptocurrency digital assets, with the development of the JPM Coin. While the currency is likely to be a private blockchain contained to the in-house banking network and clientele, it stands as a vote of confidence for both Bitcoin and the broader crypto markets that Wall Street is willing to hedge its bets in the technology.

After reaching as high as $8250 in the early morning hours of Asian trading, the price of BTC has slipped below $8k on May 20. As of writing, Bitcoin is hovering around $7700, with sellers starting the trading week by forcing the currency into a correction following the weekend rally. Fundstrat’s Tom Lee previously listed thirteen reasons why the crypto winter is over, giving his belief that the markets are entering a bullish phase even in light of last week’s price correction.

The post JP Morgan Analyst: Bitcoin (BTC) Trading Above Intrinsic Value appeared first on Ethereum World News.

Posted on

Tom Lee Updates Bitcoin Misery Index, At Highest Level in Bear Market

Bitcoin Misery Index BTC Tom Lee

Popular cryptocurrency pundit and Fundstrat Global Advisors analyst Tom Lee issued an update on his “Bitcoin Misery Index” in an interview with CoinTelegraph published on April 19. According to the analyst, Bitcoin is reaching new heights by the BMI indicators, establishing new markers that have yet to occur in a bear market.

While analytics firms differ in the market indicators they follow, Fundstrat uses the cleverly titled Bitcoin MIsery index as a way of gauging investor sentiment for the leading cryptocurrency by market capitalization. Lee designed the BMI as a way to inform investors on the relative misery of Bitcoin holders based on values such as coin price and volatility.

On April 2nd, the currency hit a BMI of 89 out of a maximum score of 100 (with the upper limit being associated with positive sentiments and 0 being outright misery). According to Lee, Bitcoin did not once break the 50 during all of 2018, despite the coin entering an extended bear market. In fact, Lee reports that Bitcoin has never achieved a BMI of greater than 67 in the midst of a bear market, giving some indication into the current state of cryptocurrency prices, leading Lee to conclude,

“It means that a bull market is likely starting.”

Lee had previously reported that the Bitcoin’s massive leap in BMI was giving mixed signals, saying

“Good–> Since 2011, BMI >67 only seen during $BTC bull markets. More evidence bull starting. Bad –> BMI >67 after peak, $BTC falls ~25% = Profit taking ST.”

However, he cautioned in the interview that elevated BMI values have traditionally correlated with a market drawback. Values above 67 have been an indicator to sell BTC, despite the positive sentiment for Bitcoin and its future outlook, as such elevations tend to be short lived. Values below 27 have been associated with buy signals, and give some indication that the currency is bottoming out and ready to swing in the other direction.

The index has not been full proof in predicting short term market movements, but has done fairly well in indicating longer trends. The last time BTC logged a score of 67 on the BMI scale was August 14, 2017. Selling at that time would have caused investors to miss out on Bitcoin’s epic bull run which took the currency to nearly $20,000, but did fall within several months of the coin turning bearish after positive price movement throughout 2017.

However, BTC’s last relative low in BMI was November 27, 2018, generating a score of 24. Following the buy signal at the time would have led investors to catch the relative bottom for Bitcoin as the currency traded near $3000–which would have result in over 80 percent profits at current price levels.

According to Lee, BTC trading at such a high level (>67) has led to a downturn in market prices “six out of six times,” with the average drop in price around 25 percent. Lee also pointed out that price retractions for Bitcoin following elevated BMI could be investors moving their profit into altcoins, as the market cycle for cryptocurrency has historically followed bullish runs for BTC followed by an elevation in alts.

The post Tom Lee Updates Bitcoin Misery Index, At Highest Level in Bear Market appeared first on Ethereum World News.

Posted on

Adamant Capital: Bitcoin in ‘Accumulation Phase’ Before Next Bull Run

Bitcoin Price Prediction 2019

A new report by Adamant Capital concludes that the bear market for Bitcoin might be nearing an end, with the currency entering an accumulation phase before the next big bull run.

Compared to the crypto winter of 2018, during which investors were forced to shed BTC or suffer losses as the currency fell from $20,000 to a relative low of $3000, the current market has traders much more optimistic about on the price outlook. Investors are now accumulating Bitcoin, putting pressure on bears who may be selling just ahead of another big price rally.

Tuur Demeester and Michiel Lescrauwaet, co-authors of the report, said that the current price point for Bitcoin should be appealing to investors,

“Now, at 75% below its 2017 all-time high, we believe the current bear market represents an exceptional opportunity for value investors.”

In what Adamant Capital refers to as the ‘accumulation phase’ for Bitcoin, the analytics firm expects BTC to trade in a range of $3000 and $6500, as bears unload their coins to willing bulls who are looking to lock in a discounted price for the number one cryptocurrency by market capitalization.

The report also concluded that retail investors took a bath in November 2018, capitulating any previously made gains–or submitting to significant losses–in a capitulation event that saw the price of Bitcoin fall 48 percent. While some of the cryptocurrency price fall can be attributed to the market uncertainty of Bitcoin Cash’s hash war, investors were also fatigued from nearly 12 months of bear market prices. The end result is a glut of investors looking to re-enter the market at a favorable condition, especially if they sold out at Bitcoin’s relative price low during last November.

Adamant Capital has made a point of tracking unrealized Profit and Loss and indicator of market performance, and reports that the most recent price rally has had a substantial impact on that metric,

“The recent price rally from $4,000 to over $5,000 markedly improved HODLer’s Unrealized P&L improving our reported sentiment value from capitulation to hope,”

The report, in particular, looks at the claim that retail investors (individual investors as opposed to professional traders or institutions) have largely left the market following the last year of losses. Such a situation would indicate that the well of bearish sellers for Bitcoin may be smaller than previously thought. Adamant Capital points to Google Trends data that indicates “apathy and disinterest” on behalf of retail investors, with searches for Bitcoin dropping to as low as March 2017 values.

Adamant also points to gradual decline in Bitcoin price volatility over the last several months, a factor that has historically been attributed to the actions of retail investors,

“High Bitcoin volatility can be a proxy for the involvement of trigger-happy retail speculators, whereas low volatility tends to coincide with phases of consolidation, apathy, and accumulation.”

With finicky retail investors gone, long-term holders have come to make up the majority of the market, a group that will be looking to accumulate more BTC at current prices and avoid succumbing to the bearish sellers.

The combination of price anticipation and investor makeup has led Adamant to conclude that Bitcoin, at its current price point, is back in “undervalued territory.”

The post Adamant Capital: Bitcoin in ‘Accumulation Phase’ Before Next Bull Run appeared first on Ethereum World News.

Posted on

Analyst: Bitcoin Moving Average Points to More Gains Ahead

Bitcoin BTC 200 Day Moving Average

While the crypto markets are showing slight contraction, with Bitcoin holding trading above $5000 in the hope for renewed price action, several analysts are pointing to the 200-day moving average as a bullish indicator.

The most recent bull run for Bitcoin and the larger cryptocurrency marketplace gave BTC its best day of trading since the massive valuation increases seen during the final month of 2017. After a strong weekend of growth, BTC price shot to $4700 on April 1, and continued to gain an additional 20 percent on April 2 to take the currency above $5000. The next two days brought about a consolidation in trading, with the price of BTC fluctuating around the $5k as both bullish and bearish investors weigh in on establishing a new floor or ceiling for the coin.

However, the market price for BTC represents a substantial increase over prices experienced earlier in the year, when Bitcoin appeared to be destined for $3000 or lower. The recent price rally has given a strong indicator to analysts that the top cryptocurrency by market capitalization likely found its bottom at $3000, with the next movement representing a broader trend in how the coin will proceed into the remainder of the year.

New York-based Fundstrat Global Advisors finds that Bitcoin could be about to extend into a 200 percent price surge, making the currency worth $13,500 if current indicators hold true. According to the research firm, Bitcoin closed above its 200-day moving average on April 2nd for the first time in more than a year, mostly due to the massive price rally that initiated the price kick-off.

In a note to clients, Fundstrat explained that closing above the 200-day moving average has been a historically bullish indicator for BTC, with a win-ratio of 80 percent compared to that of 36 percent when the coin trades below,

“Based on bitcoin’s trading history, a move above the 200-day moving average for bitcoin is meaningful statistically. When bitcoin is above its 200-day moving average its win-ratio is 80% compared to a mere 36% when it is below its 200-day.”

Fundstrat continued that trading above the 200-day moving average significantly increases six-month forward returns, which average 193 percent compared to a “measly 10% when below its 200-day moving average–hence, being above the 200-day moving average is a big deal.”

While investors, both bullish and bearish, attempt to sort through what the most recent price rally means for the valuation of Bitcoin, most community members are looking at market conditions differently than they did in 2017. Compared to that time, cryptocurrency adoption has grown substantially, with major companies such as Facebook and J.P. Morgan Chase now providing a new face of confidence for the industry.

The fear that cryptocurrency may once again find itself over-extended, with coin prices vastly outweighing the actual valuation and impact of the technology has been dwindling since the start of the year. Already industry hopefuls and cryptocurrency enthusiasts are finding reasons to own crypto outside of what they can accomplish through price speculation.

The post Analyst: Bitcoin Moving Average Points to More Gains Ahead appeared first on Ethereum World News.

Posted on

Report: Bitcoin Wallet Activity Spiked Week Before Bull Run

Bitcoin Wallet Activity Price Rally 2019

Despite analysts scrambling to find the reason behind Bitcoin’s most recent price rally, during which the currency increased 25 percent in the span of days, one firm is pointing to wallet activity as a sign of increased adoption.

According to market intelligence firm Flipside Crypto, digital wallet activity for Bitcoin and other cryptocurrencies saw a spike in activity over the previous two weeks. The wallet activity gives some indication in an uptick of user activity and industry adoption, even before the most recent bullish turn in valuation.

Historically, around 40 to 50 percent of circulating Bitcoin has been held in wallets that are inactive for greater than a month, likely due to the bulk of investors keeping their coins on exchanges. However, Flipside Crypto reports that figure falling to only 10 percent since March 15, showing a significant increase in user activity over the last several weeks.

“If you are a crypto optimist, that’s good news,” Eric Stone, co-founder of Flipside, told Bloomberg. “There are more people warming up to the idea of buying Bitcoin.”

Stone also reports that the wallet activity and price movement for the most recent rally has been less attributable to the activity of whales. Instead, the sharp increase in wallet activity from accounts that have typically been dormant indicates a broad-based “waking up” of many smaller investors. Cryptocurrency investors, likely those who have remained inactive or price-stricken during 2018’s ongoing bear market, are now taking greater interest in market price movement.

While the previous 12 months may be referred to as a “crypto winter” for the marketplace, this week’s exponential price rally and data surrounding wallet activity contributes to a more holistically driven valuation, as opposed to the action of whales. Stone points out that the plummeting price of BTC in November 2018, when Bitcoin fell 40 percent, was the result of a few whale investors shifting positions. More price movement has given a much different indication, with Flipside Chief Executive Officer Dave Balter telling Bloomberg,

“We see this move much more valid than a few whale moves in October. This probably signifies a change in perception or confidence in this asset class.”

Some analysts have pointed to a massive BTC buy spread across several exchanges as being the primary catalyst for Bitcoin’s price movement. Community members have interpreted this as indication of institutional investors at long last entering the market of cryptocurrency, likely ahead of increased mainstream adoption building throughout 2019.

With the possibility of a Facebook Coin looming over the industry’s head, it is clear that cryptocurrency has turned a corner in terms of developing real world interest. While crypto, overall, may still represent a niche digital asset class, the boom that could follow major developments such as Facebook are too enticing for large capital investors to pass up.

Brian Kelly, speaking yesterday with CNBC, called for Bitcoin to continue to $6000 off the most recent price rally, and predicted that the market as a whole had found its bottom as coin prices have continued to rise throughout most of 2019.

The post Report: Bitcoin Wallet Activity Spiked Week Before Bull Run appeared first on Ethereum World News.

Posted on

Analyst: Brexit No-Deal Will Favor Price of Bitcoin (BTC)

Brexit No-Deal Bitcoin BTC Price

Theresa May and the U.K. parliament are 9 days away from deciding upon the fate of the country in regards to Brexit, a decision that could have widespread and impactful results for the price of Bitcoin.

According to Jefferson Nunn, analyst and contributing author to Forbes, a no-deal Brexit decision will ultimately have the largest effect on Bitcoin. In terms of how the U.K. can handle its withdrawal from the European Union, a no-deal decision would result in the immediate withdrawal of the United Kingdom from the EU, with no negotiations in place to determine what that relationship would be like moving forward. Such a decision would lead to a massive disconnect in border flow between the UK and its European counterparts, leading to a disruption in trade and the ease of which people are currently able to travel.

If a no-deal goes through, Nunn predicts that the U.K. will enter a hyper-inflationary market, conditions that cryptocurrency has typically thrived under (look no further than the adoption of crypto in Venezuela and Argentina). Nunn continues,

“Unemployment will rise, the already strained UK central bank will be forced to “print cash” and Bitcoin will rise against the Pound.”

In addition to raising the value of Bitcoin against the British pound, Nunn finds it likely that cryptocurrency will find a favorable exchange rate against the Euro. The U.K. ranks 5th in terms of world economies, contributing a significant portion to the economy of the European Union. Brexit would cause a dramatic shift in the economic output of the EU, including the interchange between member countries such as Germany with the United Kingdom going forward, thereby contributing to the Euro’s decline against BTC.

Nunn also cites the contribution of the most recent bull run for Bitcoin and cryptocurrency, which is now caught inexorably with the proceedings of Brexit. Fears over the state of both the British Pound and E.U. Euro have likely contributed to the sudden investment in BTC. In a bizarre twist of fate, cryptocurrency may prove to be more price stable in the coming months than the market uncertainty that is being imposed over the Brexit ordeal. Decisions made in the coming weeks will contribute further to the price change of Bitcoin, however the groundwork built for BTC pricing throughout 2019 is already significantly different than that of the previous year.

December 2017 brought about a bullish sentiment and exponential price increase for cryptocurrency that was driven primarily by FOMO and hyper-inflated investor expectation. To put simply: cryptocurrency was not ready for the flood of capital that entered the market at the end of 2017, with adoption lagging behind valuation. Predictably, market prices tumbled in the following months, leading many analysts to refer to 2018 as the “crypto winter.”

The first quarter of this year has painted a different story for cryptocurrency, with figureheads and companies pushing adoption and industry growth ahead of price speculation. Brexit could force Bitcoin prices higher as both individuals and firms alike look to the usability of cryptocurrency as a more attractive means of currency than the uncertainty of their fiat alternatives.

At the very least, the next several weeks should prove to be even more exciting for cryptocurrency, and set the stage for potential BTC breakout adoption if the Pound and Euro falter.

The post Analyst: Brexit No-Deal Will Favor Price of Bitcoin (BTC) appeared first on Ethereum World News.

Posted on

Messari CEO: ‘Wealth Transfer’ Will Take Bitcoin (BTC) to $50,000

Bitcoin BTC Price Prediction Messari

As the crypto markets enter their second straight day of bullish price movement, with Bitcoin trading above $5000 for the first time since last year, a number of analysts are weighing in with their prediction for the future of crypto asset value.

Ryan Selkis, founder and CEO of the cryptocurrency research firm Messari believes that Bitcoin will continue to climb in the coming years, gaining over 1,000% to reach a valuation of $50,000. Specifically, Selkis cites the mass “wealth transfer” that is going to occur in the coming years, as the baby boomer generation gives way to millenials, both in terms of capital and wealth inheritance.

Selkis referred to this mass movement of wealth in a tweet published on Mar. 28, just days before Bitcoin took off in price. According to Selkis, millenials stand to inherit $30 trillion in wealth from their baby boomer generation parents, which presents a vast amount of capital that could influence cryptocurrency,

“There’s a $30 trillion “great wealth transfer” expected in the next 20+ years (millennials inheriting money from their parents).

If 1% of that goes into cryptocurrencies, crypto will be a multi-trillion dollar asset class.

That’s the conservative case for $50k+ bitcoin.”

Messari’s CEO refers to the $50,000 prediction for BTC as “conservative,” explaining that his numbers only assume a 1 percent investment by millennials in the money they will be inheriting from their parents. Selkis also assumes that millennial generations will have far greater interest for investing in digital assets and cryptocurrency, a stat-line that has been largely confirmed over the last year through various polling organizations.

Millennials, on average, are both more interested in cryptocurrency and invested in the industry of digital assets. While cryptocurrency has its appeal to a younger generation–more upside in terms of reward, despite the increased investment risk of highly volatile assets–education and lack of understanding tends to be a sticking point for the industry as a whole. The majority of polled investors, moreso in older generations, report lacking a basic understanding of Bitcoin, cryptocurrency and digital assets–a feature that could be hampering the investment potential more-so than just age differences.

Mati Greenspan, senior market analyst for cryptocurrency trading and social platform eToro, agreed with Selkis’s prediction that wealth transfer would benefit the market for Bitcoin,

“The current market cap of bitcoin is around $73 billion. If an additional $300 billion were to flow into bitcoin than it could easily increase the total market cap by 10 to 20 times the incoming capital.”

However, some analysts continue to remain skeptical on the state of cryptocurrency and Bitcoin, despite the growing adoption and valuation throughout 2019. While the entry of Facebook and J.P. Morgan Chase into cryptocurrency, via stablecoins, has been hailed as a positive movement for the industry, others see it as a way of circumventing established currencies. Bitcoin and other top cryptos may continue to see their market share decline if Facebook and mainstream companies develop their own coin projects, thereby giving their massive user bases little reason to invest in or use BTC.

The post Messari CEO: ‘Wealth Transfer’ Will Take Bitcoin (BTC) to $50,000 appeared first on Ethereum World News.

Posted on

Weiss Ratings Ranks XRP, EOS, Bitcoin As Top Cryptocurrency Projects

XRP EOS Bitcoin Weiss Rating

Weiss Crypto Ratings has published its annual outlook report on industry and market trends for cryptocurrency. According to the report, XRP, EOS and Bitcoin are the top three cryptocurrencies on the market in terms of technology and adoption.

Among the salient points reviewed in the report, Weiss was quick to point out that adoption for cryptocurrency remains high and on the rise, despite lingering coin prices, particularly through the first three months of the new year,

“Since prices have fallen so dramatically, many people assumed that real-world adoption of cryptocurrencies must have done the same. But the data shows this isn’t the case. An important segment of the industry enjoyed remarkable growth in on-chain transaction volume, network capacity and network security, often powered by an evolution in the underlying technology.”

The report went on to rank the top 10 cryptocurrencies with the “best combination of technology and adoption.” XRP took first place, with EOS and Bitcoin rounding out the top 3. Ethereum, Cardano, Steem, NEO, ZCash, Litecoin and Stellar also placed in the top 10 for the Weiss rankings. Although the Weiss ranking did not take into account investor risk and reward when issuing their rating, they did analyze tech/adoption as an indicator for long-term investors, in addition to the impact of more short-term factors.

Weiss found XRP, EOS and Bitcoin to be the three cryptocurrencies most likely to dominate in both the near and long-term, stating,

“XRP is best positioned to compete with SWIFT; EOS is the leading cryptocurrency challenging Ethereum; and Bitcoin is the most likely to become a popular store of value for savers and investors.”

Weiss ratings founder, Marin D. Weiss, explained that his company analyzed the growth rate for cryptocurrency over the last year and found a massive boost in transaction volume and network capacity, even through falling coin prices throughout 2018,

“Despite lower prices since early 2018, our ratings model gives us hard evidence that a critical segment of the cryptocurrency industry has enjoyed remarkable growth in user transaction volume, network capacity, and network security. Equally important is our finding that these improvements are often powered by an evolution in the underlying technology.”

According to the analysis published in the Weiss report, which examined the growth of daily user transactions between February 2018 and February 2019, top ten cryptocurrencies EOS and TRON both made substantial gains. EOS saw its daily user transactions rise from 7 thousand per day to 4.8 million, with TRON seeing a similarly meteoric rise during that timespan of 3 thousand to 1.9 million. WAX coin and Bitshares also made substantial leaps in daily volume, with the former jumping from essentially zero to 4.4 million.

Weiss also reports that EOS is the top cryptocurrency in terms of on-chain transaction volume, with 14 times the daily use of Bitcoin and eight times that of Bitcoin. As Weiss outlines in the report, “not all transactions are equal in quality,” but finds that other metrics contribute to EOS rapidly becoming “an important player in the industry.”

The post Weiss Ratings Ranks XRP, EOS, Bitcoin As Top Cryptocurrency Projects appeared first on Ethereum World News.

Posted on

Bitcoin (BTC) Subreddit Surpasses One Million Subscribers

Bitcoin (BTC), Cryptocurrency–While most investors run for cover amidst the falling crypto prices, as the bear market of 2018 extends into the final month of the year, the Reddit based community for the number one cryptocurrency by market capitalization has hit a new milestone.

On Dec. 2, the subreddit for Bitcoin reached 1 million subscribers, marking a historic moment for the community that few other groups on the site have been able to achieve. Amazingly, given that coin price have fallen 70 to 95 percent from their high in January, the community of cryptocurrency has managed to show resiliency that could pay off in the long run.

Bitcoin, in particular, has cultivated a strong a following of investors who are looking for more than just profit. The community formed through Reddit has not only found ways to give back to need-based programs through the significant wealth created in last year’s bull run (such as the Bitcoin Pineapple fund which gave away a whopping $86 million to 60 charities–all from the generosity of one Bitcoin user), to consistently finding ways to form grassroots adoption.

While some have chosen to trade Bitcoin for the price speculation alone, the technology has a struck a chord with the majority of its following which extends beyond just being another appreciable asset. Each user may have their own reason for supporting the currency, ranging from a belief in the technology of blockchain and the superiority of digital currencies over their fiat alternatives, to a politically-oriented ideology that espouses decentralization and more libertarian views. However, the vast number of Reddit users and Bitcoin supporters around the world hold opinions that are a far cry from the one being attributed by mainstream outlets and economists–one that continually seeks to label crypto investors as gamblers, pyramid schemers or the propagators of a malicious virus.

With the subreddit now eclipsing 1 million subscribers, it contributes to the growing paradox of 2018 that was touched upon by Mike Novogratz in a conference call last week. As reported by EWN, the billionaire crypto supporter made no qualms about the state of the industry throughout this year, claiming it has been, “a horrible bear market in tokens,” with “plenty of reason to be depressed.” Despite the plummeting price of Bitcoin, which experienced its worst month of losses in November since August 2011, the support and adoption for the digital currency is on the rise, creating the bedrock for the technology to perform in 2019 and beyond.

While Google searches and general excitement for cryptocurrency has eroded with the market capitalization, down from nearly $900 billion in January, the industry has moved past daily appearances on CNBC and other popular outlets which were fixated on the climbing price and overnight millionaires being created in last year’s bull run. In place of that attention is a recognition that the industry still has yet to grow, with prices outpacing real world use at the start of the year. It’s not enough for Bitcoin to grow from exchange driven, price speculation alone: the currency has to find a footing in both usability and mindset for mainstream consumers before it can hope to match last December pricing.

Until then, the growing community for Bitcoin on sites like Reddit continues to provide a window into the state of crypto adoption, and the willingness for a segment of the population to try the technology that has been hailed as the next greatest innovation since the internet.

The post Bitcoin (BTC) Subreddit Surpasses One Million Subscribers appeared first on Ethereum World News.

Posted on

Bitcoin (BTC) Subreddit Surpasses One Million Subscribers

Bitcoin (BTC), Cryptocurrency–While most investors run for cover amidst the falling crypto prices, as the bear market of 2018 extends into the final month of the year, the Reddit based community for the number one cryptocurrency by market capitalization has hit a new milestone.

On Dec. 2, the subreddit for Bitcoin reached 1 million subscribers, marking a historic moment for the community that few other groups on the site have been able to achieve. Amazingly, given that coin price have fallen 70 to 95 percent from their high in January, the community of cryptocurrency has managed to show resiliency that could pay off in the long run.

Bitcoin, in particular, has cultivated a strong a following of investors who are looking for more than just profit. The community formed through Reddit has not only found ways to give back to need-based programs through the significant wealth created in last year’s bull run (such as the Bitcoin Pineapple fund which gave away a whopping $86 million to 60 charities–all from the generosity of one Bitcoin user), to consistently finding ways to form grassroots adoption.

While some have chosen to trade Bitcoin for the price speculation alone, the technology has a struck a chord with the majority of its following which extends beyond just being another appreciable asset. Each user may have their own reason for supporting the currency, ranging from a belief in the technology of blockchain and the superiority of digital currencies over their fiat alternatives, to a politically-oriented ideology that espouses decentralization and more libertarian views. However, the vast number of Reddit users and Bitcoin supporters around the world hold opinions that are a far cry from the one being attributed by mainstream outlets and economists–one that continually seeks to label crypto investors as gamblers, pyramid schemers or the propagators of a malicious virus.

With the subreddit now eclipsing 1 million subscribers, it contributes to the growing paradox of 2018 that was touched upon by Mike Novogratz in a conference call last week. As reported by EWN, the billionaire crypto supporter made no qualms about the state of the industry throughout this year, claiming it has been, “a horrible bear market in tokens,” with “plenty of reason to be depressed.” Despite the plummeting price of Bitcoin, which experienced its worst month of losses in November since August 2011, the support and adoption for the digital currency is on the rise, creating the bedrock for the technology to perform in 2019 and beyond.

While Google searches and general excitement for cryptocurrency has eroded with the market capitalization, down from nearly $900 billion in January, the industry has moved past daily appearances on CNBC and other popular outlets which were fixated on the climbing price and overnight millionaires being created in last year’s bull run. In place of that attention is a recognition that the industry still has yet to grow, with prices outpacing real world use at the start of the year. It’s not enough for Bitcoin to grow from exchange driven, price speculation alone: the currency has to find a footing in both usability and mindset for mainstream consumers before it can hope to match last December pricing.

Until then, the growing community for Bitcoin on sites like Reddit continues to provide a window into the state of crypto adoption, and the willingness for a segment of the population to try the technology that has been hailed as the next greatest innovation since the internet.