Source for BlockChain News

Monthly archive

August 2012

How the Bitcoin Halving Could Affect BTC Price in the Near-Term



Bitcoin (BTC) is trading below the $8,000 level just two months before its anticipated halving in May. However, over the past few weeks, markets have been crashing because of the coronavirus outbreak and investors have been cashing out on their digital assets, including Bitcoin. Will this impact the effect of the halving?

Upcoming Halving Might Impact BTC Price Negatively

Based on the current market outlook, there is a possibility that the May 2020 halving might have a negative effect on BTC price. In the 2012 and 2016 halving events, BTC price dropped before and after the halving, and the same is expected as we approach May.

A hypothesis has emerged indicating that miners usually sell their holdings before halving so that they can accumulate adequate Bitcoin to facilitate operations post halving. This allows miners to hold onto most of the Bitcoin they mine. Such a move would benefit miners, considering the Bitcoin mining break-even price usually spikes when halving occurs.

TradeBlock’s James Todaro expects the break-even price to jump from $7,000 to between $12,000 and $15,000 post halving. He adds that it is likely that BTC price could rise beyond these levels, and miners can rack in more profits. Dutch analyst Michael van de Popper also indicates that in the short-term, if the crypto retests $8,700 and manages to hold, there is a possibility to rise towards $9,150.

Miners Could Earn the Same Returns Post Halving

The halving event usually reduces the amount of BTC that miners can mine. With Bitcoin approaching a fixed supply of 21 million, it’s possible that miners will earn less following the halving for doing the same amount of work. Similarly, if Bitcoin price fails to significantly increase after the event and the difficulty in mining persists, then there is a possibility of a higher break-even price but with the same earnings as before.

>> XRP Could Upswing Despite Growing Uncertainties Around the Token

This year, BTC has demonstrated an inverse correlation with equity markets and gold. The coronavirus outbreak has resulted in huge sell-off of assets despite their risk-off or risk-on nature. Bitcoin has been moving like other markets by reacting to macro events in a similar manner.

Featured image: DepositPhotos © AntonMatyukha

If You Liked This Article Click To Share

Ripple Startup Launches XRPayments App



It’s no secret Ripple has been looking for more mainstream adoption. And, based on XRPL Labs’ recent announcement, it appears XRP is on its way to achieving just that. News surfaced this week that XRPL Labs, a Ripple-backed startup, has rolled out a new payments app called XRPayments.

Here’s why the app is important.

XRPayments App Available on iOS and Android

The launch of the app makes considerable sense. Not just because Ripple itself is trying to bring more attention to XRP, though. XRPL Labs has also been trying for more use and adoption of the token. And by turning compatible devices into PoS systems, which allows retailers to accept the digital asset in stores, this is sure to bring more attention to XRP.

The app is available on iOS through the App Store. It is also available on Android via the Google Play Store.

Wietse Wind, the co-founder of the Ripple-backed startup, first tweeted the news on April 18, writing: “Our XRPayments app was just accepted by Google and Apple. You can get the app now from the Apple iOS or Google Play store, and start accepting $XRP for payments in your physical store!”

More Good News for Ripple

On top of the launch of XRPayments, Ripple enthusiasts have been met with even more good news. Last week, it was announced that Ripple was included on the Forbes Blockchain 50 list.

>> Moon Payment Means You Can Shop on Amazon Using Bitcoin!

Ripple: Here to Stay?

Some people are always going to remain bearish on the topic of cryptocurrencies. While justified at times, XRP and Ripple have been doing reasonably well in 2019, and the launch of XRPayments indicates there are more good things coming not only to the company but the crypto community as well.

What do you think, though? Do you think XRPayments will change the game for retail owners? Let us know in the comments below.

Featured image: DepositPhotos © adriantoday

If You Liked This Article Click To Share

Why Goldman Sachs is Wrong About Bitcoin

Goldman Sachs

Goldman Sachs

Bitcoin is one of the most popular cryptocurrencies out there, and it continues growing each year. The digital currency world has become popular for online transactions and enhanced security. However, some remain skeptical. Goldman Sachs recently held a briefing with investors where leaders discussed the crypto world with clients. The results, though, were not what crypto-enthusiasts were hoping for.

As new tech advances the crypto world, some believe Goldman Sachs is falling behind due to its rejection of Bitcoin. On the other hand, the bank remains firm in its decision. It’s unclear if things will change in the future, but the bank listed reasons for its apprehension—and criticism followed.

The Initial Discussion

Last week, news started circulating that leaders from Goldman Sachs were going to discuss cryptocurrency in a briefing with investors and clients. The initial news sparked interest among followers of both the bank and Bitcoin—the primary focus of cryptocurrency.

Shortly after the briefing, however, documents leaked online that showed the coverage of Bitcoin. Crypto-proponents were disappointed to see the bank had no interest in the token or plans to invest or encourage clients to invest.

Goldman Sachs listed several reasons for its hesitation and disinterest. First, the bank stated that Bitcoin doesn’t generate enough cash flow in the same way that bonds do. The other primary claim is that the cryptocurrency does not foster enough global economic growth to be an asset. Goldman Sachs also listed the volatility, lack of hedging against inflation, and potential insecurity as detriments.

Illicit activity is a major concern from the bank. The general public has heard cases of cryptocurrency fostering ransomware breaches, money laundering, and illegal darknet use. With these reasons in the leaked documents, the bank didn’t comment further.

The lack of investments and interest from Goldman Sachs stirred controversy, especially on Twitter. Users and followers were unhappy with this decision—the consensus being that the bank is moving in the wrong direction of progress.

>> Bitcoin Price Hits Two-Week Low, Garnering Interest from Small Investors

The Mistake of Disinterest

Since cryptocurrency, and especially Bitcoin, is taking off, the criticism towards Goldman Sachs isn’t surprising. The banking group typically guides clients towards any investments that will fare well in the market. Since Bitcoin is a high-performing investment, criticism of its decision has poured in.

As one of the biggest banking establishments in history, Goldman Sachs needs to stay current with new opportunities. Since technology is driving societies across the world within the digital realm, the bank should follow that movement.

Cryptocurrency has emerged as one of the most innovative outcomes of the technological transition. Many now feel that Goldman Sachs’ blind eye will end negatively for its clients. As the market for Bitcoin expands and adapts, Goldman Sachs’ clients could be missing out on an important asset that drives profits upward.

In response to the comments and documents from the briefing, many individuals and critics are calling the views outdated. Others are going so far as to call the statements hypocritical—in particular, in terms of the cybersecurity and cybercrime comments. Recently, Goldman Sachs found itself in hot water with a money-laundering scandal involving $6 billion. Critics pointed out the double standard of the bank’s distrust of Bitcoin with this example.

Ultimately, though, some followers saw this rejection coming. Others are still making sense of it. Modernization involves the digital realm—dismissing it is a mistake.

Bitcoin’s Performance

Like most cryptocurrency, Bitcoin has an extremely volatile market. It fluctuates daily and can drop or skyrocket based on investments and interest. However, despite these changes, it continues growing as a platform. More businesses and individuals are using Bitcoin as a means of transactions—it’s essentially its own currency.

Those who invest in or follow Bitcoin will want to keep an eye on its patterns. Its resilience can influence its price increases—meaning it can bounce back faster than it drops. When it does, the price can reach new heights. Goldman Sachs will miss out on this opportunity, as will its clients.

Room for Change

Though Goldman Sachs’ decision doesn’t appear to be in line with more modern approaches, the bank won’t likely be making changes anytime soon. However, if Bitcoin’s performance continues showing resilience with more investments and uses, the bank could eventually change its mind. With the interest of Goldman Sachs, Bitcoin—and the thousands of other cryptocurrencies—could have more room for growth than ever before.

This article was curated through CryptoCurrencyNews’ Contributor Program. If you would like to write for us, send us your submission!

Featured image: DepositPhotos © nevarpp

Please See Disclaimer

If You Liked This Article Click To Share

Go to Top