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Top 10 Cryptocurrencies See Green After a Tumultuous Week

Bitcoin (BTC)–After one of the hardest hitting weeks to the crypto markets in an otherwise bearish year, the top ten currencies by market capitalization appear to be in recovery.

On Monday, the total market capilization of cryptocurrency dipped below $200 billion for the first time since last year, signaling a relative low from January 2018’s near-trillion dollar valuation. Altcoins in particular experienced a severe decline, with currencies across the board posting double-digit losses throughout the week.

Ethereum, an otherwise stalwart coin that has both developers and investors excited over, dropped to a valuation not seen since last year, making for a full retraction in value following the bull run to start the year. Various analysts disagreed over the exact reason for the plunging price of Ether, but two predominant theories emerged. The first was proposed by Biswas Das, director of crypto hedge fund BloomWater Capital, who blamed the ICO market for causing a decline in Ethereum. According to Das, the falling crypto markets in addition to jumpy venture capitalists were leading to a mass sell-off in the Ether collected for ICOs–in part to cover costs, but also to lock in profits ahead of a total market collapse,

“These startups are raising a lot of funds but they don’t have treasury management or enough cash management experience, so they’re selling too early and causing a lot of pressure in the market. It was fine last year but right now the the market is so fragile that it causes a lot of pressure.”

Arthur Hayes, CEO and co-founder of crypto exchange BitMex, echoed the sentiment that ICOs were hurting the price of Ethereum, making a bold claim that he believed price depression would lead to Ether dropping below $100.

While Ethereum benefited through most of 2017 and early 2018 from the massive boom in ICO development, of which almost every project is built upon the ERC-20 platform, the plunging price of crypto has led the initial coin offering venture capitalists to force sell Ether. However, in a statement to CCN, eToro’s Mati Greenspan blamed the sinking price of cryptocurrency and Ethereum on a strengthening dollar. According to Greenspan, efforts to stave off inflation in the United States is leading to a stronger dollar, which means investors have less incentive to shelter their funds from inflation in cryptocurrency, particularly with the massive price volatility currently wreaking havoc on the market,

“As the United States moves to tighten its economy and avoid strong inflation, they’re taking action that is strengthening the Dollar. Because the US Dollar is the global reserve currency, many smaller economies rely heavily on a stable exchange rate with the greenback. So too, as the Dollar is being seen as a stable store of value at the moment, there really isn’t much incentive for people to store their money in digital assets.”

Most of the market is still hinging upon a decision by the United States Securities and Exchange Commision (SEC) over whether to approve a Bitcoin Exchange-Traded Fund. The belief is still that institutional investors and most Wall Street players are waiting for greater government regulation in the cryptomarkets before entering, which has produced a large amount of interest over ETFs.

As of writing, total market capitalization was holding at $210 billion.

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Cardano, Ethereum Founder: Cryptocurrency to Command Multi-Trillion Dollar Industry

Cryptocurrency–Charles Hoskinson has been one of the more fortunate, and potentially industry leading figures in cryptocurrency over the last fives years. The former consultant purchased his first BTC at under 8 USD, and started an online school for Bitcoin education in 2013, when the currency was trading for less than 100 USD. Through his connection to the digital education portal, he first met Vitalik Buterin, a relationship that led to Hosksinson becoming one of eight original founders of Ethereum (currently commanding a market capitalization of 47 billion USD).

While Hoskinson left the project in 2014 following disagreements over the structure of Ethereum, his high-profile presence in the industry became a springboard for other projects, notably 2017’s release of Caradano (ADA). With his background in Bitcoin and Ethereum already well established, Hoskinson embarked on a new project to account for deficiencies found in both currencies, most notably the inability to scale to levels necessary for widespread adoption. Using his experience from the founding of Ethereum, he started the Input Output Hong Kong (IOHK) blockchain firm in 2015, which led to the development of the Cardano platform and ADA cryptocurrency.

Given his extensive history and knowledge of both the industry and market of cryptocurrency, Hoskinson has become a beacon for predictions and future proofing in relation to the technology. Most notably, he has become an outspoken contrarian to the general media’s take on crypto as a conglomeration of ponzi schemes and vaporware projects.

There are a few takeaways from Hoskinson’s bold prediction for market capitalization, in addition to his critique of media coverage towards crypto and the constant schadenfreude colored narrative. While traditional media has long operated under a “if it bleeds it leads” model of headline-grabbing, the amount fear, uncertainty and doubt being produced by supposedly reputable outlets like CNBC is becoming unbearable. The public, or at least a handful of gateway journalists, have become inundated in seeing the failure of cryptocurrency.

‘Most of the personal attacks against crypto are unjustifiable and emotionally driven: when people hear stories of average joe investors and tech geeks becoming overnight millionaires, they feel a sense of loss. The real problem is in how the media creates the narrative of cryptocurrency as only price-driven. That’s akin to judging the health and functionality of the internet by how Apple and Facebook stocks are doing. Crypto currencies may be the immediate figures to respond to market changes, but they have little to do with the adoption, advancement and innovation of the underlying technology.

Hoskinson also brings up the point that “big money,” in the form of Wall Street and fintech developers, has barely scratched the surface on crypto investing. It’s not that Goldman Sachs will step in tomorrow and take BTC to the moon; it’s the underlying idea that crypto is still in the early days of adoption. Most main street investors take their cues from the financial figureheads and gurus entrenched in traditional Wall Street. As more outlets of high capital trust enter the realm of blockchain and cryptocurrency, the barrier to entry becomes that much lower for the average investor and developer.

Adoption, particularly when accompanying widespread disruption, is a process that takes time. But it  also follows an exponential curve. As someone who has been involved in Bitcoin since the early days, Hoskinson has an inherent understanding of the time frame for cryptocurrency to reach its full potential. That doesn’t help the wallets of new investors who entered the market during this bear cycle (or worse, at the top of last year’s bull run), but it does provide hope for the technology and the feasibility of cryptocurrency going forward. 

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