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Ethereum Believer Awaits Looming Crypto “Nuclear Winter”

As reported by Ethereum World News, in late-October, as Bitcoin (BTC) stagnated and volatility continued to dissipate, Arthur Hayes, an equity markets trader turned CEO of BitMEX, likened 2018’s stormy conditions to 2014/2015’s “nuclear bear market,” while speaking with Yahoo Finance U.K.

While Hayes was quickly put on the back foot, seeing boatloads of flak fly his way due to his (somewhat) inflammatory comment, another prominent industry insider recently backed the BitMEX CEO’s comments. This support, which came indirectly, took the form of a similar comment on the status of the cryptosphere.

Beware Of The Crypto Nuclear Winter

Speaking at Global Tech Forum 2018, a Fortune-sponsored conference hosted in Guangzhou, China, Jim Breyer, an early backer of Facebook, Circle, Ethereum (ETH), VeChain (VET), and others, claimed that “we are close to a nuclear winter right now with cryptocurrency.”

As noted by Fortune’s The Ledger, the outlet’s dedicated crypto- and blockchain-related column, venture capital giant Breyer, who created a fund that shares his surname, drew attention to the ‘dime a dozen’ bubbles seen in infant markets. The tumultuous interest in artificial intelligence and related technologies, or the rise and subsequent crash of the (original) Dotcom industry, are just two examples that the Facebook angel investor pointed out.

Expressing why these historical events are pertinent, Breyer noted that such cycles in the realm of technology are “inevitable,” evidently indicating that blockchain’s rise to prominence may experience a similar pattern of “boom and bust.”

Have No Fear, Bulls Are Still Here

Although Breyer’s comments undoubtedly painted a bearish picture for crypto’s short-term, optimists would be remiss to count out sentiment held by the zealous believers of this ground-breaking innovation.

Per a handful of previous reports from Ethereum World News, a multitude of industry insiders, who hold/held lofty positions in the cryptosphere, have double-downed on touting their faith for cryptocurrencies and blockchain technologies.

Morgan Creek Digital partner Anthony Pompliano, for one, recently took to CNBC’s Squawk Box, a television segment watched by over 100,000 consumers, to claim that Bitcoin (BTC), supposedly the world’s most secure transaction settlement layer. will always hold some value. Pompliano subsequently noted that crypto assets at large remain the decade’s most profitable asset class, despite the tossing and turning seen commonly in this market.

His colleague and boss, Mark Yusko also of Morgan Creek, took to CNBC’s Fast Money just days later to tout similar bullish sentiment. More specifically, Yusko, far from the average Silicon Valley investor, expressed that he “loves Bitcoin for the long-term, adding that the monumental rise seen in the crypto market’s volumes are just a testament to this industry’s growth.

Even the CEO of the Intercontinental Exchange, who watches over the New York Stock Exchanges, had positive comments to say on the matter. The legend in the financial world stated that he, along with his wife, CEO of Bakkt, are unequivocally sure that cryptocurrencies will survive, before adding that market conditions haven’t irked his or his wife’s faith.

And, of course, Breyer himself also took to Bitcoin’s side, presumably to ensure that his “crypto nuclear winter” comments weren’t taken out of context. He issued the following comment that accentuated his support for this innovation, lauded as the greatest since the Internet’s first iteration (PCP/IP):

So many of the very best computer scientists and deep learning PhD students and post-docs are working on blockchain because they have so much fundamental interest in what blockchain can mean… You don’t want to bet against the best and brightest in the world.

Title Image Courtesy of Roan Lavery on Unsplash

The post Ethereum Believer Awaits Looming Crypto “Nuclear Winter” appeared first on Ethereum World News.

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Ripple (XRP) Facing New Allegations for Price Manipulation

One of the latest events related to Ripple Labs has nothing positive in it. Private XRP crypto-investor alleges in the last security fraud lawsuit that Bradley Garlinghouse – the CEO of Ripple and Ripple Labs Inc. have mixed their proprietary Ripple tech and also price manipulated for their profit.

Ripple XRP

All three lawsuits allege that keeping in mind the centralized status of XRP and the mining-less supply model gave the opportunity to Ripple Labs Inc to have a not-stopping Initial coin Offering period. This lead to raising near $100 mil worth of their token. This is equal only for the FourthQ in 2017.

Even that there is a long-running debate going on if XRP is a security or not it has still to be clarified. Kyle Samani, Multicoin co-founder added that traders should stay away from Ripple, as he said it is for sure a security. But, Brad Garlinghouse – Ripple’s founder, strongly denies any claim that the token XRP is a security of any sort.

“It’s quite clear to us that Ripple is a security. We don’t know when that news is going to drop, but the catalysts seem to have kind of gone away from Ripple […] My point is, if Ripple is labeled a security formally by the SEC, all of the crypto exchanges are going to stop trading Ripple. So if that happens, liquidity is going to dry up on XRP and the price will plummet.”

But, keeping in mind that it is still not classified as a security, all three hits against Ripple Labs could be connected and blowing away the blurry vision. The Recorder reports that the sale of XRP “dwarfed any other source of revenue at Ripple”.

If the famous Howey test [test created by the U.S. Supreme Court in 1946] finds out as to whether the asset is a security or not much will be discovered. Accordingly, it could be proven if XRP’s story is one very long illegal ICO that would be followed up with the lawsuits turning successful giving a massive critical hit against the crypto-verse in a global range.

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Investor Doug Casey: Bitcoin May Be Money, But It Still Might Fail

Investor and anarcho-capitalist Doug Casey recently argued that bitcoin qualifies as money – even he’s not sure it’ll last in the long term.

In an interview published yesterday, the Casey Research founder discussed his viewpoints behind bitcoin. During the chat, he noted that he first got into bitcoin back when it was valued at around $13, thanks to a gift of a physical bitcoin he received.

Casey notably argued that bitcoin meets the characteristics defined by the Greek philosopher Aristotle. Namely, that it is divisible, durable, convenient to use (in some circumstances) and consistent, according to Casey. At the same time, Casey returned to a belief that he previously held but now argues is wrong: that bitcoin has no “use value.”

He explained in the interview.

“If you have a million US dollars and nobody accepts them, they have no use in and of themselves. They’re just unsecured liabilities of a bankrupt government. Like a million Zimbabwe dollars. And a fiat currency is easily destroyed by its issuer. The things are burning matches. They have half-lives, like radioactive elements. And I said that was the problem with bitcoin. But I was wrong about that.”

Going on to call bitcoin “an excellent transfer device” that sits outside of the traditional banking system, Casey said that his original argument against bitcoin’s use value was invalid.

“So, this is the use value of bitcoin. It allows you to transfer something that is accepted as money outside of the banking system, and outside of fiat money currencies,” he said.

However, Casey was less bullish on the long-term prospects of the cryptocurrency. He argued that while he believes that bitcoin meets the conditions to serve as a form of money, this state of affairs won’t last forever.

“The bottom line, bitcoin passes the medium of exchange test for the moment and store of value test for the moment. So you can definitely say it’s money – for the moment,” he said, adding:

“But so’s the Argentine peso. I have little confidence bitcoin will be here say five years from now.”

Image via Flickr

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.