Daily Management Review

Will Ethereum Encounter The Same Fate As Bitcoin?


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.

Science & Technology

Five new technologies that will change the world

Over 500 Genes Impacting Intelligence Identified By Scientists

MIT Scientists Say It Could Be Just 13 Years For Commercialization Of Nuclear Fusion

Apple patents MacBook with a keyboard screen

Vero: An Instagram killer?

Wacky Weather Causes ‘Split In The Polar Vortex’

Smart And Adaptive Artificial Eye Developed By Researchers At Harvard

NASA’s Mars Mission To Make Use Of Cold War-Era Atomic Rockets

Israel Completes Mars Habitat Simulation Experiment

Just $24 Earned By Hackers From The Huge Cryptojacking Campaign Conducted Last Week

World Politics

World & Politics

Ten world's largest importers of weapons

Christine Lagarde: there’s no winner in trade wars

10 best countries for freelancers

Alarming Concerns Or Driving Force Towards Green Energy? – Bitcoin Growth Comes At Environmental Cost

Catalan authorities refuse to greet the King of Spain

Ten Top Politicians To Be Investigated By Greek Parliament On Charges Of Taking Bribes From Novartis

The cloudy future of Saudi Arabia

Australia To Welcome Britain On The Latter’s Interest In Joining TPP