Daily Management Review

Will Ethereum Encounter The Same Fate As Bitcoin?


06/28/2017


Rumours and “flash crash” weighs down customers’ confidence on etheruem.



Will Ethereum Encounter The Same Fate As Bitcoin?
On Monday, Ethereum, the rival of Bitcoin, took a plunge while “a major exchange” put its effort to “shore up confidence” in vain. As a result, an announcement was made whereby the customers who lost their money in “flash crash” that took place last week, were to be credited.
 
Ether, another name of Ethereum, “traded 20.9 percent lower at $239.63 Monday afternoon”, informed CoinDesk. The flash crash brought down ethereum to ten cents from “above $300” on “Coinbase's GDAX exchange”, while two days later the exchange reassured the customers experiencing “a margin call or stop loss order” to be credited.
 
However, the temporary halt at GDAX on the afternoon of Monday, affecting trades of “all products”, came to normalcy within a span of an hour, while data from CoinDesk shows that for the month of June ethereum is “still up about 2 percent” and “2,500 percent for the year”. The “unsubstantiated rumor” of Sunday that claimed the founder of ethereum, Vitalik Buterin’s death added to the brief woe of “ethereum's price”. As per Evelyn Cheng’s report:
“Ethereum fell from around $329 to a low of $284 Sunday before recovering, according to CoinDesk. Buterin tweeted a picture of himself Sunday evening, ET, to dispel the rumor”.
 
However, the author of “The Business Blockchain: Promise, Practice, and Application of the Next Internet Technology”, William Mougayar thinks that the rumour is not the main reason that caused “ethereum's decline”. His email to CNBC read:
“We need to see a full 24 hour cycle in order to fully assess what is actually happening. These cryptocurrencies are traded globally, especially with a large amount of activity coming from China, so I'm waiting to see what happens around 6PM EST this evening.”
 
The investors of digital currency holds the “reversal” of ethereum exuberance that stemmed from the various “ethereum-based” project launch, responsible for “clogging the network”. More prominently, the “inability of ethereum” in coping up with orders is an issue to ponder about as it can be a harbinger of “a debate over an upgrade model”, a similar fate as bitcoin that weighed down its value.
 
Furthermore, Cheng added:
“Two different methods for upgrading bitcoin, SegWit2x and BIP148, are set to go into effect July 21 and Aug. 1, respectively. Initially the systems were incompatible, threatening to split bitcoin in two and likely reducing its value. However, a developer announced earlier this month a way to make the two methods compatible, helping bitcoin recover from lows of the month”.
 
In the words of “Fred Wilson” partner of Union Square Ventures as well as a “digital currency investor”:
“My gut says we are headed for a selloff in the crypto sector”.
 
Although, he is optimistic about the “future of cryptocurrencies” in the coming decade.
 
 
References:
www.cnbc.com







Science & Technology

Designing Of Cars Being Done With Hologram Goggles At Ford

The Already Surging Cyber Attacks Are Set To Rise Even Further, Says A Study

Chinese to equip smartphones with OLED displays

Based On One Photo, Research Shows A.I. Can Detect The Sexual Orientation Of A Person

Cyber Crime Risks Are Substantial, Systemic, Says SEC Chief

Tech Titans, Amazon & Microsoft, Partner To Integrate Their Respective A.I. ‘Voice Assistants’

SpaceX Selects Technical University Team’s Hyperloop As The Winner Of The ‘Fast Pod’

Market of autonomous cars will accelerate by 2025

AHA Customers In Iceland Enjoy The First ‘Drone Delivery Service’ In The World

Wal-Mart to unite with Google's voice platform

World Politics

World & Politics

Strong 3.4 magnitude earthquake detected coming from North Korea’s nuclear test site

Even As Kim And Trump Trade Threats, South Korea Approves $8 Million Aid For The North

From October 1 Uber is banned in London

Concerns about the far-right party are growing in Germany

Fight for clean air: 7 countries against internal combustion engines

Japan, India Agree To Deepen Defence With China In Mind

Myanmar's Rohingya Crisis May Be Taken Advantage Of By Terror Groups

The French people voted for Labour Reforms, there is no turning back: French Prime Minister Edouard Philippe