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

Fast Company: Apple isn't the most innovative anymore

U.S. Space Program Could Be Delayed Due To SpaceX, Boeing Design Risks: Reuters

What trends will be affecting the health sector in the coming years?

Deloitte identifies main cyber threats for power industry

Zenuity To Take Self Driving Car Road Test In Sweden With Permission

Researchers: Half of Facebook users is fake

Amazon’s Ring gets in a privacy scandal

Facebook Is Creating A Stablecoin For Its WhatsApp Users

IBM offers to use the first quantum computer

Passport Numbers Of 5 Million Customers Hacked: Concedes Marriott

World Politics

World & Politics

AirHelp expects up to 33 th of cancellations and flight delays per day all over the world in 2019

Far-right and Catalonia: New elections in Spain

Trump is losing rating because of shutdown

Hanoi, Vietnam Chosen As Place For 2nd Summit Between Trump And Kim Jong-Un

US, China to hold new negotiations in Beijing

Human Rights Not To Be Dissociated From Stability, Macron Tells Sisi

Brexit Hijack Is Not The Parliament’s Right

Macedonia ignites political crisis in Greece