Bitcoin to Follow the Same Trend as Amazon to Recover its All-Time Highs: Coin Shares

  • The ‘Big Bang’ of 2018 dwarfed by other asset bubbles
  • Bitcoin outperformed every other asset class
  • Why aren’t investment professionals allocating to BTC

The investment of the decade which recorded 9,000,000% gains is currently sitting at just around $7,100.

In the short term, Bitcoin is expected to experience a lot of pain ahead that would surely be mixed with its own dose of gains as well.

But as we reported, in the long term, a poll run by Mati Greenspan, founder of newsletter Quantum Economics found that a staggering 49.2%, nearly half of respondents believe that Bitcoin is going to climb to $1 million by the end of the next decade.

The Big Bang of 2018 Dwarfed by other Asset Bubbles

It all started at the end of 2013 when Bitcoin became a billion dollar market during a short-lived price run following the seizure of Mt. Gox and arrest of Ross Ulbricht.

In December 2017, BTC hit its peak at $20,000 while the crypto market cap nearly reached one trillion dollars, $835 billion, during the first week of January following a rapid run up in Ethereum, XRP and other altcoins as well.

This “big bang” was relatively large resulting in a 20x price increase in a year, but Meltem Demirors, Chief Investment Officer of Coin Share and Marty Stenson, Associate, who authored the 2019 Crypto Trends Report “the value created (and destroyed) is dwarfed by other asset bubbles.”

Bitcoin outperformed every other asset class

The world’s leading cryptocurrency is already the best performing asset of the decade with a whopping 9,000,000 percentage gains.

According to the digital asset management company Coin Shares, It took seven to seventeen years for Amazon to recover its all-time highs and Bitcoin is expected to “follow a similar trend.”

However, Comparatively, bitcoin has been a much volatile asset, “but on an absolute basis, it’s outperformed every other asset class over a comparable time scale.”

Why aren’t Investment Professionals Allocating to BTC?

As a recent report by Bank of America Securities stated, if you invested $1 in bitcoin at the beginning of the decade, it would now be worth over $90,000.

On the other hand, Demirors notes that more than half of all stocks underperform the risk-free rate (US Treasuries) and “many lose money.” Actually, less than 1% for stocks drive more than 75% of stock market returns, she added.

This is why “it’s odd to me that investment professionals aren’t allocating to bitcoin or a passive basket of crypto (which is still >70% bitcoin),” said Demirors.

She illustrates how ARK Invest, a fintech company made a small allocation, less than 1% to Grayscale Bitcoin Trust to their Innovation ETF in 2015 that was one of the best performing ETF of 2017.

But she notes, “This strategy requires conviction. Riding the trend on the way up is a risky proposition, given how volatile bitcoin is. Secular trends take time to develop, and cyclical volatility can be a major deterrent.”

But as we saw in the case of the dotcom bubble, a few like Amazon came out at the top as winners. As such, “investment decisions *today* should be shaped by our perspective on where the world is headed *tomorrow.*”

“I believe bitcoin is a massively important part of the future,” added Demirors.

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Author: AnTy

Ethereum’s Muir Glacier Upgrade Happening on Jan. 1, 2020

  • Starting 2020 with a bang with the scheduled upgrade at block number 9,200,000
  • The upgrade includes only one EIP 2384 – the difficulty bomb delay
  • Nodes to upgrade before Dec. 30

Ethereum is ready to start 2020 with a bang as the team announced the scheduled upgrade at block number 9,200,000. It is currently predicted to occur on Wednesday 1, 2020.

Ethereum network nodes are meanwhile asked to upgrade before, Dec. 30, 2019 to account for the variable block times.

Exchanges, web wallet service, mobile wallet services or hardware wallets aren’t required to do anything. But the node operators and miners need to download the latest version of Ethereum client, Latest geth client (v1.9.9), Latest Parity client (v2.5.12-stable), Latest Besu client (v1.3.7), Latest Nethermind client (v1.2.6), Latest ethereumJS client (v4.1.2), and Latest Aleth Client (v1.8.0).

After Istanbul, Constantinople, and Spurious Dragon, this new upgrade is called Muir Glacier.

Just this month, Istanbul upgrade occurred and now within a month another one. Reportedly, the bomb was estimated to be unnoticeable until mid-2020 but it turned out to be wrong.

This upgrade has only one Ethereum Investment proposal (EIP) 2384, which is the difficulty bomb delay.

This will delay the difficulty bomb for another 4,000,000 block or about 611 days, which is the same approach like the one taken in the past.

There have been discussions about removing the difficulty bomb altogether from the network but due to a short frame of time, the core developers decided to move forward with this change.

As for the difficulty bomb, it is one piece of the difficulty retargeting mechanisms built into Ethereum’s Proof-of-Work algorithm. This mechanism maintains an average block time by manipulating mining difficulty required to mine a new block. If a block is too long or too short, it increases the difficulty accordingly.

The difficulty bomb itself separately adds to the difficulty and every 100,000 block the value of how much it adds is increased as well. But the amount is so small, it doesn’t have any visible effect and because it is increasing very slowly it is known as “Ice Age”. But over time, “this will start making the chain bloated and more costly to use.”

Muir Glacier upgrade will be activated only on the Ropsten network and will be deployed on the testent and mainnet both on the same day.

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Author: Joseph Kibe